Oak Harvest Investment Services Invests $3.28 Million in The Charles Schwab Corporation $SCHW

Key Points

• Oak Harvest Investment Services has made a new investment of approximately $3.28 million in The Charles Schwab Corporation, acquiring 41,952 shares in the first quarter.
• Analysts have raised their price targets for Charles Schwab, with a consensus price target now at $99.60 and a "Moderate Buy" rating.
• The company announced a quarterly dividend of $0.27 per share and initiated a significant $20 billion share buyback program, indicating confidence in its stock value.

Oak Harvest Investment Services bought a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 41,952 shares of the financial services provider's stock, valued at approximately $3,284,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Vanguard Group Inc. increased its position in shares of Charles Schwab by 15.4% during the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after acquiring an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Charles Schwab by 12.3% during the first quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock worth $6,422,795,000 after acquiring an additional 8,954,248 shares during the last quarter. Northern Trust Corp increased its position in shares of Charles Schwab by 10.8% during the first quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock worth $1,365,227,000 after acquiring an additional 1,700,384 shares during the last quarter. Invesco Ltd. increased its position in shares of Charles Schwab by 5.0% during the first quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock worth $1,220,107,000 after acquiring an additional 743,906 shares during the last quarter. Finally, Wellington Management Group LLP increased its position in shares of Charles Schwab by 595.7% during the first quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock worth $1,212,461,000 after acquiring an additional 13,262,309 shares during the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Stock Performance

SCHW stock traded up $1.11 during midday trading on Tuesday, reaching $97.30. The company had a trading volume of 7,720,954 shares, compared to its average volume of 8,098,677. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The stock has a 50 day moving average price of $94.16 and a 200 day moving average price of $85.55. The Charles Schwab Corporation has a fifty-two week low of $61.16 and a fifty-two week high of $99.59. The firm has a market capitalization of $176.62 billion, a PE ratio of 26.16, a P/E/G ratio of 0.95 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The company had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same period in the previous year, the firm posted $0.73 earnings per share. Charles Schwab's quarterly revenue was up 24.8% compared to the same quarter last year. Analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Friday, August 8th. Charles Schwab's payout ratio is presently 29.03%.

Charles Schwab declared that its Board of Directors has initiated a stock buyback program on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

SCHW has been the subject of several research analyst reports. William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and boosted their price objective for the company from $65.00 to $82.00 in a report on Monday, June 9th. Piper Sandler boosted their price objective on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Morgan Stanley boosted their price objective on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a report on Tuesday, July 29th. Finally, Bank of America boosted their price objective on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a report on Monday, July 21st. Sixteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and an average target price of $99.60.

Insider Buying and Selling

In other Charles Schwab news, insider Paul V. Woolway sold 10,129 shares of Charles Schwab stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total value of $911,711.29. Following the completion of the transaction, the insider directly owned 39,154 shares in the company, valued at $3,524,251.54. The trade was a 20.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Nigel J. Murtagh sold 24,096 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total value of $2,359,239.36. Following the transaction, the insider owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 241,693 shares of company stock valued at $23,488,848. 6.30% of the stock is currently owned by insiders.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.