Parkwood LLC Makes New $24.26 Million Investment in The Charles Schwab Corporation $SCHW

Key Points

• Parkwood LLC has acquired 309,857 shares of The Charles Schwab Corporation, valued at approximately $24.26 million, making it the fund's 10th largest holding.
• Analyst ratings have been positive, with several firms adjusting their price targets upward, reflecting a generally favorable outlook on the stock as it holds a consensus rating of "Moderate Buy."
• Charles Schwab has approved a $20 billion stock buyback plan, indicating confidence in the company's stock valuation and aims to repurchase approximately 11.6% of its outstanding shares.

Parkwood LLC purchased a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The firm purchased 309,857 shares of the financial services provider's stock, valued at approximately $24,256,000. Charles Schwab makes up approximately 2.2% of Parkwood LLC's holdings, making the stock its 10th biggest holding.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of SCHW. Permanens Capital L.P. raised its holdings in Charles Schwab by 16.1% in the 1st quarter. Permanens Capital L.P. now owns 54,528 shares of the financial services provider's stock valued at $4,268,000 after acquiring an additional 7,561 shares during the last quarter. Plancorp LLC raised its holdings in Charles Schwab by 8.9% in the 1st quarter. Plancorp LLC now owns 3,150 shares of the financial services provider's stock valued at $247,000 after acquiring an additional 257 shares during the last quarter. NFJ Investment Group LLC acquired a new stake in Charles Schwab in the 1st quarter valued at about $21,169,000. Nissay Asset Management Corp Japan ADV raised its holdings in Charles Schwab by 8.8% in the 1st quarter. Nissay Asset Management Corp Japan ADV now owns 206,855 shares of the financial services provider's stock valued at $16,193,000 after acquiring an additional 16,663 shares during the last quarter. Finally, NewEdge Advisors LLC raised its holdings in Charles Schwab by 2.6% in the 1st quarter. NewEdge Advisors LLC now owns 100,337 shares of the financial services provider's stock valued at $7,854,000 after acquiring an additional 2,573 shares during the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, insider Nigel J. Murtagh sold 24,096 shares of the company's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the completion of the transaction, the insider owned 58,999 shares in the company, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Chairman Walter W. Bettinger sold 173,876 shares of the company's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the sale, the chairman owned 590,734 shares of the company's stock, valued at approximately $58,388,148.56. This trade represents a 22.74% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 298,214 shares of company stock worth $29,022,580. 6.30% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

SCHW has been the subject of several analyst reports. Bank of America increased their price target on shares of Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research note on Monday, July 21st. Barclays increased their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and increased their price target for the company from $65.00 to $82.00 in a research note on Monday, June 9th. Raymond James Financial reissued an "outperform" rating and issued a $99.00 price target on shares of Charles Schwab in a research note on Friday, July 18th. Finally, Truist Financial increased their price target on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research note on Friday, August 15th. Sixteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $99.60.

Charles Schwab Stock Up 0.2%

NYSE SCHW traded up $0.21 on Tuesday, hitting $93.66. 10,771,963 shares of the stock were exchanged, compared to its average volume of 8,476,118. 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 Charles Schwab Corporation has a fifty-two week low of $61.16 and a fifty-two week high of $99.59. The company has a market cap of $170.01 billion, a PE ratio of 25.18, a PEG ratio of 0.92 and a beta of 0.96. The company has a 50-day moving average price of $95.29 and a 200-day moving average price of $86.52.

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

Charles Schwab announced that its board has approved a stock repurchase plan on Thursday, July 24th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a $0.27 dividend. The ex-dividend date was Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio is presently 29.03%.

Charles Schwab Company Profile

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.