Point72 Europe London LLP Acquires 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 lifted its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 140.6% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 220,600 shares of the financial services provider's stock after purchasing an additional 128,900 shares during the quarter. Point72 Europe London LLP's holdings in Charles Schwab were worth $17,269,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of SCHW. Vanguard Group Inc. grew its holdings in shares of Charles Schwab by 15.4% during 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 purchasing an additional 19,817,022 shares during the period. Wellington Management Group LLP grew its holdings in shares of Charles Schwab by 595.7% during the 1st quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock worth $1,212,461,000 after purchasing an additional 13,262,309 shares during the period. Primecap Management Co. CA grew its holdings in shares of Charles Schwab by 229.3% during the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock worth $1,096,083,000 after purchasing an additional 9,749,728 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in shares of Charles Schwab by 12.3% during 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 purchasing an additional 8,954,248 shares during the period. Finally, Nuveen LLC purchased a new position in shares of Charles Schwab during the 1st quarter worth $440,699,000. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the sale, the insider directly owned 11,923 shares of the company's stock, valued at approximately $1,154,265.63. The trade was a 34.01% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 295,009 shares of company stock valued at $28,717,464. 6.30% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on SCHW shares. Piper Sandler raised their target price on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. TD Securities raised their target price on Charles Schwab from $95.00 to $113.00 and gave the stock a "buy" rating in a research report on Tuesday, May 20th. Truist Financial lifted their price target on Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research report on Friday, August 15th. William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Finally, Barclays boosted their target price on Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a report on Friday, July 18th. Sixteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $99.60.

Charles Schwab Price Performance

Shares of SCHW stock traded up $0.13 during mid-day trading on Tuesday, hitting $95.97. 7,740,711 shares of the stock traded hands, compared to its average volume of 7,386,242. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59. The firm has a market cap of $174.21 billion, a price-to-earnings ratio of 25.80, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The company's 50-day simple moving average is $94.87 and its 200-day simple moving average is $86.06. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55.

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, topping the consensus estimate of $1.10 by $0.04. The business had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.Charles Schwab's revenue was up 24.8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.73 earnings per share. As a group, equities research analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab announced that its Board of Directors has authorized a share repurchase program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

Charles Schwab Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were given a dividend of $0.27 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) 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.