North Star Asset Management Inc. Buys Shares of 478,540 The Charles Schwab Corporation $SCHW

Key Points

• North Star Asset Management initiated a position of 478,540 Charles Schwab shares worth approximately $44.2 million, making SCHW about 1.7% of its portfolio. Institutional investors collectively own 84.38% of the company.
• Charles Schwab reported stronger-than-expected quarterly results, with EPS of $1.62 and revenue of $7.07 billion, up 20.9% year over year. Analysts maintain a “Moderate Buy” consensus and a $121.17 average price target.
• The stock offers a quarterly dividend of $0.32, equivalent to a $1.28 annual payout and a 1.2% yield, but recent insider selling—including significant sales by executives—could weigh on investor sentiment.

North Star Asset Management Inc. purchased a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the second quarter, according to its most recent filing with the SEC. The firm purchased 478,540 shares of the financial services provider's stock, valued at approximately $44,155,000. Charles Schwab accounts for approximately 1.7% of North Star Asset Management Inc.'s portfolio, making the stock its 11th largest position.

A number of other institutional investors have also recently bought and sold shares of the company. Dogwood Wealth Management LLC boosted its holdings in shares of Charles Schwab by 99.2% in the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock valued at $25,000 after buying an additional 123 shares during the period. Compass Financial Management LLC acquired a new stake in shares of Charles Schwab during the second quarter worth $27,000. Scarborough Advisors LLC acquired a new stake in shares of Charles Schwab during the first quarter worth $29,000. McIlrath & Eck LLC lifted its position in Charles Schwab by 143.2% in the 4th quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 189 shares in the last quarter. Finally, Main Street Group LTD bought a new stake in Charles Schwab in the 1st quarter valued at $33,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Compass Point assumed coverage on Charles Schwab in a report on Monday, August 3rd. They set a "buy" rating and a $135.00 target price for the company. Argus lifted their price target on Charles Schwab from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Thursday, July 23rd. Weiss Ratings restated a "buy (b-)" rating on shares of Charles Schwab in a report on Thursday, June 18th. Citigroup reaffirmed a "market outperform" rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Finally, BMO Capital Markets downgraded Charles Schwab from an "outperform" rating to a "market perform" rating and set a $105.00 price objective for the company. in a report on Monday, July 20th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Charles Schwab has a consensus rating of "Moderate Buy" and a consensus price target of $121.17.

Charles Schwab Stock Performance

Shares of SCHW opened at $108.09 on Friday. The stock has a market capitalization of $186.93 billion, a price-to-earnings ratio of 19.65, a PEG ratio of 0.82 and a beta of 0.76. The Charles Schwab Corporation has a 12 month low of $83.96 and a 12 month high of $114.53. The firm has a fifty day simple moving average of $103.05 and a 200 day simple moving average of $96.29. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.52.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.06. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The firm had revenue of $7.07 billion for the quarter, compared to analyst estimates of $6.90 billion. During the same period in the previous year, the business earned $1.14 EPS. The company's revenue was up 20.9% compared to the same quarter last year. Research analysts forecast that The Charles Schwab Corporation will post 6.46 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be issued a $0.32 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.28 annualized dividend and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is presently 23.27%.

Insiders Place Their Bets

In related news, insider Nigel J. Murtagh sold 24,778 shares of Charles Schwab stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $109.01, for a total value of $2,701,049.78. Following the sale, the insider owned 57,972 shares of the company's stock, valued at approximately $6,319,527.72. The trade was a 29.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jonathan S. Beatty sold 1,000 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $111.33, for a total value of $111,330.00. Following the sale, the insider owned 10,738 shares in the company, valued at $1,195,461.54. The trade was a 8.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 575,194 shares of company stock valued at $61,697,642 in the last quarter. 6.30% of the stock is currently owned by corporate insiders.

Charles Schwab News Summary

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab plans to expand Schwab Crypto beyond Bitcoin and Ethereum by adding Solana, Avalanche and Chainlink in the coming months. The broader digital-asset lineup could attract new clients, increase engagement and create additional trading-related revenue opportunities. Charles Schwab to add Solana, Avalanche and Chainlink to crypto platform
• Positive Sentiment: OneVest has gone live on Schwab’s Digital Account Opening API, including a headless integration option. The partnership broadens Schwab’s fintech connectivity and could strengthen its custody and advisor-technology platform. OneVest Goes Live on Schwab's Digital Account Opening API
• Neutral Sentiment: Schwab is publishing guidance on retirement withdrawals and other savings “money traps.” The content may support customer trust and financial education, but it is unlikely to materially affect near-term earnings. Schwab says one common 401(k) withdrawal habit raises taxes
• Negative Sentiment: Vanguard’s $4 billion Altruist acquisition could intensify competition for independent advisors and custody assets, potentially increasing Schwab’s technology spending and pricing pressure. Vanguard Takes On Fidelity, Charles Schwab With $4 Billion Altruist Deal
• Negative Sentiment: Chairman Walter Bettinger sold 176,210 SCHW shares for approximately $20 million, reducing his ownership by 22.4%. The sizable disclosed sale may reinforce investor caution, particularly after the stock’s strong rally and recent high. SEC insider transaction filing
• Negative Sentiment: Schwab remains sensitive to interest-rate expectations and bank-sweep balances. Recent macro uncertainty and profit-taking after strong earnings appear to be outweighing the potential near-term benefit from its crypto expansion.

About Charles Schwab

Charles Schwab Corporation NYSE: SCHW is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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