Notis McConarty Edward Makes New Investment in The Charles Schwab Corporation $SCHW

Key Points

• Notis McConarty Edward initiated a Charles Schwab position of 36,470 shares worth approximately $3.37 million, while institutional investors collectively own 84.38% of SCHW.
• Charles Schwab reported strong quarterly results, with EPS of $1.62 and revenue of $7.07 billion, up 20.9% year over year; July client assets also rose 19% to $13.04 trillion.
• Shares trade near their 52-week high at roughly 20 times earnings. Analysts maintain a “Moderate Buy” consensus with a $121.17 target, although recent insider selling and the elevated valuation may warrant caution.

Notis McConarty Edward bought a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 36,470 shares of the financial services provider's stock, valued at approximately $3,365,000. Charles Schwab comprises 1.5% of Notis McConarty Edward's holdings, making the stock its 26th largest holding.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Norges Bank acquired a new position in Charles Schwab during the fourth quarter worth about $1,994,189,000. Flossbach Von Storch SE acquired a new stake in Charles Schwab in the 2nd quarter valued at about $987,930,000. BlackRock Inc. acquired a new stake in Charles Schwab in the 2nd quarter valued at about $861,475,000. Bank of New York Mellon Corp raised its holdings in Charles Schwab by 22.9% in the 1st quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider's stock valued at $1,518,913,000 after acquiring an additional 3,009,884 shares during the last quarter. Finally, Primecap Management Co. CA lifted its stake in Charles Schwab by 9.7% in the 4th quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider's stock worth $2,325,512,000 after purchasing an additional 2,066,884 shares in the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, Chairman Walter W. Bettinger sold 192,488 shares of the stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $103.90, for a total transaction of $19,999,503.20. Following the sale, the chairman owned 529,346 shares of the company's stock, valued at approximately $54,999,049.40. This represents a 26.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Dennis Howard sold 28,000 shares of Charles Schwab stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $105.01, for a total transaction of $2,940,280.00. Following the completion of the transaction, the insider owned 10,470 shares of the company's stock, valued at $1,099,454.70. This trade represents a 72.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 398,984 shares of company stock worth $41,699,569 in the last quarter. Insiders own 6.30% of the company's stock.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: Schwab opened its first India global capability centre in Hyderabad and plans to expand it to approximately 2,000 employees by the end of 2027. The technology and engineering hub could improve operating efficiency, support artificial-intelligence initiatives and help protect long-term margins. Charles Schwab India investment article
• Positive Sentiment: July client assets increased 19% year over year to $13.04 trillion. Higher net new assets and trading activity point to continued revenue growth and reinforce the momentum behind Schwab’s recent earnings performance. Schwab July client assets
• Positive Sentiment: The stock’s recent strength has been supported by record asset inflows, expanding margins and strong earnings momentum. Schwab’s latest quarterly results exceeded consensus, with $1.62 EPS and $7.07 billion of revenue, up 20.9% year over year. Schwab reaches 52-week high
• Neutral Sentiment: Schwab raised $2.6 billion through fixed-to-floating-rate notes and expanded its product lineup with cash-settled single-stock futures. The capital supports flexibility, while the new derivatives could increase engagement but face adoption and liquidity uncertainty. Schwab capital raise and product expansion
• Negative Sentiment: Two insiders sold shares recently: Jonathan Beatty sold 1,000 shares for about $111,330, and Dennis Howard sold 2,198 shares for approximately $241,780. The trades were small relative to Schwab’s market value and were conducted under pre-arranged plans, but they may add caution near record levels. Schwab insider sales
• Negative Sentiment: At roughly 20 times earnings, SCHW is no longer an obvious bargain after a 106% three-year advance. Investors may be taking profits while assessing whether future growth can justify the elevated valuation and continued expense growth. Schwab valuation analysis

Charles Schwab Stock Performance

Shares of SCHW stock opened at $110.78 on Thursday. The firm's 50 day moving average price is $100.75 and its 200-day moving average price is $96.00. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.64 and a current ratio of 0.64. The Charles Schwab Corporation has a one year low of $83.96 and a one year high of $112.20. The firm has a market cap of $191.57 billion, a P/E ratio of 20.14, a P/E/G ratio of 0.85 and a beta of 0.76.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.06. The firm had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The firm's revenue for the quarter was up 20.9% on a year-over-year basis. During the same quarter last year, the firm earned $1.14 EPS. As a group, equities research analysts predict that The Charles Schwab Corporation will post 6.46 EPS for the current year.

Charles Schwab Dividend Announcement

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

Wall Street Analyst Weigh In

SCHW has been the topic of several recent research reports. Zacks Research upgraded Charles Schwab from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 9th. Wolfe Research reaffirmed an "outperform" rating and issued a $127.00 price target on shares of Charles Schwab in a report on Tuesday, July 21st. BMO Capital Markets downgraded Charles Schwab from an "outperform" rating to a "market perform" rating and set a $105.00 price objective on the stock. in a research report on Monday, July 20th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Charles Schwab in a research note on Wednesday, July 22nd. Finally, TD Cowen upped their target price on Charles Schwab from $108.00 to $109.00 and gave the company a "buy" rating in a report on Friday, May 15th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $121.17.

Charles Schwab Company Profile

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.

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