Primecap Management Co. CA Takes Position in The Charles Schwab Corporation $SCHW

Key Points

• Primecap Management initiated a sizable Charles Schwab position, purchasing 266,870 shares worth approximately $60.5 million in the second quarter. Institutional investors collectively own 84.38% of SCHW.
• Charles Schwab reported better-than-expected quarterly results, with EPS of $1.62 versus the $1.56 consensus and revenue of $7.07 billion, up 20.9% year over year. The company also declared a quarterly dividend of $0.32 per share, representing a 1.2% annualized yield.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $121.17, although recent insider selling and competition in digital wealth management remain potential concerns.

Primecap Management Co. CA bought a new position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 266,870 shares of the financial services provider's stock, valued at approximately $60,523,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Dogwood Wealth Management LLC lifted its stake in shares of Charles Schwab by 99.2% during the 4th quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock valued at $25,000 after buying an additional 123 shares in the last quarter. Compass Financial Management LLC purchased a new stake in Charles Schwab in the 2nd quarter worth $27,000. Scarborough Advisors LLC purchased a new stake in Charles Schwab in the 1st quarter worth $29,000. McIlrath & Eck LLC raised its holdings in Charles Schwab by 143.2% during the fourth quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 189 shares during the period. Finally, Main Street Group LTD bought a new stake in Charles Schwab during the first quarter valued at about $33,000. Institutional investors own 84.38% of the company's stock.

Charles Schwab Stock Performance

Shares of NYSE:SCHW opened at $109.55 on Thursday. The firm has a fifty day simple moving average of $102.72 and a two-hundred day simple moving average of $96.27. The Charles Schwab Corporation has a 52 week low of $83.96 and a 52 week high of $114.53. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52. The stock has a market capitalization of $189.45 billion, a P/E ratio of 19.92, a PEG ratio of 0.84 and a beta of 0.76.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, beating analysts' consensus estimates of $1.56 by $0.06. The firm had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The firm's revenue for the quarter was up 20.9% compared to the same quarter last year. During the same quarter last year, the firm earned $1.14 EPS. On average, analysts expect that The Charles Schwab Corporation will post 6.46 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be issued a $0.32 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.2%. Charles Schwab's payout ratio is 23.27%.

Insider Activity

In other Charles Schwab news, Director Paula A. Sneed sold 5,263 shares of Charles Schwab stock in a transaction on Friday, August 7th. The shares were sold at an average price of $107.15, for a total transaction of $563,930.45. Following the completion of the transaction, the director directly owned 91,711 shares of the company's stock, valued at $9,826,833.65. The trade was a 5.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Nigel J. Murtagh sold 32,947 shares of the business's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $104.01, for a total transaction of $3,426,817.47. Following the transaction, the insider owned 57,972 shares in the company, valued at $6,029,667.72. This trade represents a 36.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 575,194 shares of company stock worth $61,697,642. Company insiders own 6.30% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on SCHW shares. Morgan Stanley upped their price objective on Charles Schwab from $133.00 to $136.00 and gave the stock an "overweight" rating in a research note on Monday, July 27th. Zacks Research raised Charles Schwab from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 9th. UBS Group set a $135.00 price target on Charles Schwab in a report on Monday, August 3rd. BMO Capital Markets lowered shares of Charles Schwab from an "outperform" rating to a "market perform" rating and set a $105.00 price objective for the company. in a report on Monday, July 20th. Finally, Raymond James Financial reiterated an "outperform" rating and set a $145.00 price objective on shares of Charles Schwab in a research report on Wednesday, July 22nd. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $121.17.

Key Charles Schwab News

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: OneVest launched on Schwab’s digital account-opening API, including a flexible “headless” option for wealth-management firms. The integration could expand Schwab’s advisor-services technology ecosystem and make its platform more attractive to fintech partners. OneVest Goes Live on Schwab's Digital Account Opening API
• Positive Sentiment: Recent brokerage-stock comparisons highlight Schwab’s scale, diversified revenue base and improving earnings profile. Its valuation is viewed as more reasonable than Interactive Brokers’ despite IBKR’s faster growth, reinforcing the potential appeal of SCHW to value-oriented investors. Schwab vs. Interactive Brokers: Which Brokerage Stock is a Better Buy?
• Neutral Sentiment: Commentary expects market volatility to rise later this year while the VIX remains historically subdued. Higher volatility could increase trading activity and options interest, but the articles primarily frame options as a trading strategy rather than a direct earnings catalyst for Schwab. Markets May Soon Turn Rocky. Time to Trade Schwab Stock.
• Negative Sentiment: Vanguard’s planned $4 billion acquisition of Altruist increases competitive pressure in digital wealth management, a market where Vanguard, Fidelity and Schwab are already competing for advisors and assets. Vanguard Takes On Fidelity, Charles Schwab With $4 Billion Altruist Deal
• Negative Sentiment: Investors appear to be taking profits after Schwab’s strong earnings, rally and recent one-year high. Because earnings and bank-sweep balances are sensitive to interest rates, changing rate expectations and bond-market moves are adding pressure. Heavy insider selling reported over the past six months may also weigh on sentiment, although CEO Richard Wurster was a buyer. Charles Schwab Shares Slip as Investors Weigh Rate Sensitivity and Recent Profit-Taking

Charles Schwab Profile

Charles Schwab Corporation NYSE: SCHW is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source