Point72 Europe London LLP Buys 128,900 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Point72 Europe London LLP increased its stake in The Charles Schwab Corporation by 140.6% during the first quarter, owning 220,600 shares valued at $17.27 million.
• Charles Schwab's quarterly revenue rose 24.8% year-over-year to $5.85 billion, with earnings per share of $1.14, beating estimates by $0.04.
• Schwab has initiated a $20 billion stock repurchase program, allowing for the repurchase of up to 11.6% of its stock, indicating management’s belief that the stock is undervalued.

Point72 Europe London LLP increased its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 140.6% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 220,600 shares of the financial services provider's stock after purchasing an additional 128,900 shares during the period. Point72 Europe London LLP's holdings in Charles Schwab were worth $17,269,000 at the end of the most recent reporting period.

Other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of Charles Schwab by 15.4% in 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 grew its stake in shares of Charles Schwab by 12.3% in 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 grew its stake in shares of Charles Schwab by 10.8% in 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. grew its stake in shares of Charles Schwab by 5.0% in 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 grew its stake in shares of Charles Schwab by 595.7% in 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 institutional investors.

Analyst Ratings Changes

SCHW has been the topic of a number of recent research reports. Wells Fargo & Company set a $102.00 price target on shares of Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. Truist Financial raised their price target on shares of Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Barclays increased their target price on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Cowen reiterated a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Finally, Piper Sandler lifted 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. Sixteen analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Charles Schwab has an average rating of "Moderate Buy" and an average price target of $99.60.

Charles Schwab Trading Down 0.1%

Charles Schwab stock traded down $0.06 during mid-day trading on Wednesday, hitting $96.06. The stock had a trading volume of 7,261,150 shares, compared to its average volume of 7,386,242. The stock has a 50-day simple moving average of $94.87 and a two-hundred day simple moving average of $86.06. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $174.36 billion, a PE ratio of 25.82, a P/E/G ratio of 0.94 and a beta of 0.96. The Charles Schwab Corporation has a 12 month low of $61.16 and a 12 month high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The firm had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same period last year, the firm earned $0.73 earnings per share. The business's revenue for the quarter was up 24.8% on a year-over-year basis. As a group, sell-side analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current year.

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 given a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, August 8th. Charles Schwab's payout ratio is presently 29.03%.

Charles Schwab announced that its board has approved a stock buyback plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Insider Activity at Charles Schwab

In other news, insider Jonathan S. Beatty sold 6,144 shares of the business's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the completion of the transaction, the insider directly owned 11,923 shares in the company, valued at approximately $1,154,265.63. The trade was a 34.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Paul V. Woolway sold 10,129 shares of the business's stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total value of $911,711.29. Following the transaction, the insider owned 39,154 shares of the company's stock, valued at $3,524,251.54. The trade was a 20.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 295,009 shares of company stock worth $28,717,464. 6.30% of the stock is owned by company 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.