S Bank Fund Management Ltd Buys New Holdings in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• S Bank Fund Management Ltd has made a new investment of approximately $1.38 million in The Charles Schwab Corporation by acquiring 17,624 shares in the first quarter.
• Charles Schwab announced a stock repurchase plan authorized for up to $20 billion, indicating that the board believes the shares are undervalued.
• The company has declared a quarterly dividend of $0.27 per share, with an annualized yield of 1.1%, payable on August 22nd.

S Bank Fund Management Ltd purchased a new position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 17,624 shares of the financial services provider's stock, valued at approximately $1,380,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the business. Brighton Jones LLC raised its holdings in Charles Schwab by 380.5% during the 4th quarter. Brighton Jones LLC now owns 24,240 shares of the financial services provider's stock worth $1,794,000 after buying an additional 19,195 shares during the period. Sagespring Wealth Partners LLC acquired a new stake in Charles Schwab during the 4th quarter worth about $467,000. Keystone Financial Group acquired a new stake in Charles Schwab during the 4th quarter worth about $208,000. CreativeOne Wealth LLC acquired a new stake in Charles Schwab during the 4th quarter worth about $411,000. Finally, Belpointe Asset Management LLC raised its holdings in Charles Schwab by 9.2% during the 4th quarter. Belpointe Asset Management LLC now owns 11,354 shares of the financial services provider's stock worth $840,000 after buying an additional 958 shares during the period. 84.38% of the stock is currently owned by institutional investors.

Insider Activity

In other Charles Schwab news, Director Paula A. Sneed sold 8,647 shares of the company's stock in a transaction that occurred on Tuesday, May 27th. The stock was sold at an average price of $88.06, for a total transaction of $761,454.82. Following the completion of the sale, the director owned 105,654 shares of the company's stock, valued at $9,303,891.24. This represents a 7.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jonathan S. Beatty sold 2,850 shares of the company's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $87.57, for a total value of $249,574.50. Following the transaction, the insider owned 15,219 shares of the company's stock, valued at approximately $1,332,727.83. This trade represents a 15.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 308,016 shares of company stock valued at $29,341,433. Insiders own 6.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on SCHW. William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Barclays boosted their price objective on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. JPMorgan Chase & Co. boosted their price objective on Charles Schwab from $92.00 to $95.00 and gave the stock an "overweight" rating in a report on Monday, April 21st. UBS Group boosted their price objective on Charles Schwab from $95.00 to $96.00 and gave the stock a "buy" rating in a report on Tuesday, April 22nd. Finally, TD Securities boosted their price objective on Charles Schwab from $95.00 to $113.00 and gave the stock a "buy" rating in a report on Tuesday, May 20th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $99.35.

Charles Schwab Stock Up 2.3%

Shares of NYSE SCHW traded up $2.21 during trading hours on Thursday, hitting $97.80. The stock had a trading volume of 11,310,032 shares, compared to its average volume of 9,257,840. The company has a market capitalization of $177.53 billion, a P/E ratio of 26.29, a P/E/G ratio of 0.92 and a beta of 0.96. The firm's 50-day moving average price is $92.93 and its two-hundred day moving average price is $84.79. The Charles Schwab Corporation has a 52 week low of $61.16 and a 52 week high of $99.59. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.53 and a current ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. The firm 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%. The company's revenue was up 24.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.73 earnings per share. Analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

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

Charles Schwab Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be given a dividend of $0.27 per share. The ex-dividend date of this dividend is 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 is presently 29.03%.

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.