The Charles Schwab Corporation $SCHW Stake Lowered by PointState Capital LP

Key Points

• PointState Capital LP has reduced its stake in The Charles Schwab Corporation by 4.5%, holding 3,060,536 shares after selling 145,523 shares in the first quarter.
• Charles Schwab's stock is currently experiencing a decline, down 5.7%, with a market cap of $167.15 billion and earnings that surpassed analyst expectations.
• The company has initiated a $20 billion stock repurchase program, indicating that its board views the shares as undervalued.

PointState Capital LP lessened its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 4.5% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 3,060,536 shares of the financial services provider's stock after selling 145,523 shares during the quarter. Charles Schwab makes up 3.5% of PointState Capital LP's holdings, making the stock its 5th biggest position. PointState Capital LP owned about 0.17% of Charles Schwab worth $239,579,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also recently bought and sold shares of SCHW. Vanguard Group Inc. lifted its holdings in 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 valued at $11,616,380,000 after purchasing an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD increased 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 valued at $6,422,795,000 after buying an additional 8,954,248 shares during the period. Northern Trust Corp lifted 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 valued at $1,365,227,000 after purchasing an additional 1,700,384 shares during the period. Alliancebernstein L.P. grew its holdings in Charles Schwab by 16.0% in the first quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock worth $1,339,822,000 after purchasing an additional 2,355,309 shares during the period. Finally, Invesco Ltd. increased its holdings 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 valued at $1,220,107,000 after acquiring an additional 743,906 shares in the last quarter. Institutional investors own 84.38% of the company's stock.

Insider Buying and Selling at Charles Schwab

In other news, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the sale, the insider owned 58,999 shares of the company's stock, valued at $5,776,592.09. This trade represents a 29.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Paul V. Woolway sold 10,129 shares of the company's stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total transaction of $911,711.29. Following the completion of the transaction, the insider owned 39,154 shares of the company's stock, valued at approximately $3,524,251.54. This trade represents a 20.55% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 298,214 shares of company stock valued at $29,022,580. Corporate insiders own 6.30% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently weighed in on SCHW shares. Truist Financial raised their target price on Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a report on Friday, August 15th. Citigroup upped their price target on Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and raised their target price for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. Morgan Stanley upped their price target on shares of Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Finally, Raymond James Financial reiterated an "outperform" rating and set a $99.00 target price on shares of Charles Schwab in a research report on Friday, July 18th. Sixteen equities 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 data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $99.60.

Charles Schwab Stock Up 0.2%

NYSE SCHW traded up $0.21 during mid-day trading on Tuesday, reaching $93.66. The stock had a trading volume of 10,771,963 shares, compared to its average volume of 8,476,118. The Charles Schwab Corporation has a 1 year low of $61.16 and a 1 year high of $99.59. The company has a fifty day moving average price of $95.24 and a 200 day moving average price of $86.47. 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 stock has a market cap of $170.01 billion, a PE ratio of 25.18, a price-to-earnings-growth ratio of 0.92 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share 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 company had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same quarter in the previous year, the company earned $0.73 EPS. Charles Schwab's revenue for the quarter was up 24.8% on a year-over-year basis. On average, research analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

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

Charles Schwab Dividend Announcement

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