Permanens Capital L.P. Acquires 7,561 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Permanens Capital L.P. increased its stake in The Charles Schwab Corporation by 16.1%, acquiring an additional 7,561 shares to hold a total of 54,528 shares valued at approximately $4.27 million.
• Numerous institutional investors have boosted their holdings in Charles Schwab, with Vanguard Group increasing its stake by 15.4%, now owning shares worth over $11.6 billion.
• Charles Schwab's recent quarterly earnings exceeded expectations, reporting an EPS of $1.14, surpassing the consensus estimate of $1.10, with revenue of $5.85 billion reflecting a year-over-year increase of 24.8%.

Permanens Capital L.P. boosted its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 16.1% during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 54,528 shares of the financial services provider's stock after acquiring an additional 7,561 shares during the quarter. Charles Schwab accounts for approximately 0.8% of Permanens Capital L.P.'s investment portfolio, making the stock its 15th biggest holding. Permanens Capital L.P.'s holdings in Charles Schwab were worth $4,268,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in shares of Charles Schwab by 15.4% in the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after buying an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Charles Schwab by 12.3% in the 1st 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 buying an additional 8,954,248 shares during the last quarter. Northern Trust Corp boosted its stake in shares of Charles Schwab by 10.8% in the 1st quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock worth $1,365,227,000 after buying an additional 1,700,384 shares during the last quarter. Alliancebernstein L.P. boosted its stake in shares of Charles Schwab by 16.0% in the 1st quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock worth $1,339,822,000 after buying an additional 2,355,309 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Charles Schwab by 5.0% in the 1st quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock worth $1,220,107,000 after buying an additional 743,906 shares during the last quarter. Hedge funds and other institutional investors own 84.38% of the company's stock.

Wall Street Analyst Weigh In

SCHW has been the topic of a number of research analyst reports. Raymond James Financial restated an "outperform" rating and issued a $99.00 target price on shares of Charles Schwab in a research note on Friday, July 18th. Morgan Stanley increased their target price on shares of Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Piper Sandler increased their target price on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research report on Tuesday, July 15th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and increased their target price for the company from $65.00 to $82.00 in a research report on Monday, June 9th. Finally, TD Securities increased their target price on shares of Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a research report on Tuesday, May 20th. Sixteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Charles Schwab presently has an average rating of "Moderate Buy" and a consensus price target of $99.60.

Charles Schwab Price Performance

SCHW stock traded up $0.21 during midday trading on Tuesday, reaching $93.66. The company had a trading volume of 10,771,963 shares, compared to its average volume of 8,476,118. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The Charles Schwab Corporation has a 1 year low of $61.16 and a 1 year high of $99.59. The company has a market capitalization of $170.01 billion, a P/E ratio of 25.18, a P/E/G ratio of 0.92 and a beta of 0.96. The firm 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 posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.04. The firm had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The business's quarterly revenue was up 24.8% on a year-over-year basis. During the same quarter last year, the company posted $0.73 EPS. On average, research analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors 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 1.2%. The ex-dividend date of this dividend was Friday, August 8th. Charles Schwab's dividend payout ratio is currently 29.03%.

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

Insiders Place Their Bets

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the transaction, the chairman owned 590,734 shares of the company's stock, valued at $58,388,148.56. This represents a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the business's stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total transaction of $4,851,552.00. The disclosure for this sale can be found here. Insiders have sold 298,214 shares of company stock valued at $29,022,580 over the last quarter. Insiders own 6.30% of the company's stock.

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.