SCS Capital Management LLC Invests $926,000 in The Charles Schwab Corporation $SCHW

Key Points

• SCS Capital Management LLC has invested approximately $926,000 in The Charles Schwab Corporation by acquiring 11,830 shares in the 1st quarter.
• Charles Schwab announced a stock buyback plan for $20.00 billion, allowing the company to repurchase up to 11.6% of its shares, indicating management's belief that the stock is undervalued.
• The company declared a quarterly dividend of $0.27 per share, representing an annualized dividend of $1.08 with a yield of 1.2%.

SCS Capital Management LLC bought a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 11,830 shares of the financial services provider's stock, valued at approximately $926,000.

Several other hedge funds have also modified their holdings of the company. Sheaff Brock Investment Advisors LLC boosted its stake in shares of Charles Schwab by 1.6% during the 1st quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock worth $625,000 after acquiring an additional 129 shares in the last quarter. HM Payson & Co. boosted its stake in shares of Charles Schwab by 0.7% during the 1st quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock worth $1,509,000 after acquiring an additional 130 shares in the last quarter. Cornerstone Wealth Management LLC lifted its stake in Charles Schwab by 2.1% in the 1st quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock valued at $513,000 after buying an additional 132 shares in the last quarter. Journey Strategic Wealth LLC lifted its stake in Charles Schwab by 3.1% in the 1st quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock valued at $351,000 after buying an additional 135 shares in the last quarter. Finally, Meridian Wealth Management LLC lifted its stake in Charles Schwab by 2.2% in the 1st quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock valued at $485,000 after buying an additional 136 shares in the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Stock Down 1.5%

SCHW stock opened at $92.23 on Thursday. The company has a market cap of $167.43 billion, a price-to-earnings ratio of 24.79, a PEG ratio of 0.92 and a beta of 0.96. 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 Charles Schwab Corporation has a 12 month low of $61.16 and a 12 month high of $99.59. The firm has a 50-day moving average of $95.31 and a two-hundred day moving average of $86.56.

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

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

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a dividend of $0.27 per share. The ex-dividend date was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is currently 29.03%.

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 completion of the sale, the insider owned 58,999 shares in the company, valued at $5,776,592.09. This trade represents a 29.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the firm's stock in a transaction that occurred 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 disclosure for this sale can be found here. Over the last three months, insiders have sold 298,214 shares of company stock worth $29,022,580. Insiders own 6.30% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently weighed in on SCHW. Keefe, Bruyette & Woods raised their price target on shares of Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. Morgan Stanley raised their price target on shares of Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research note on Tuesday, July 29th. Truist Financial raised their price target on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research note on Friday, August 15th. Bank of America raised their price target on shares of Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research note on Monday, July 21st. Finally, Wells Fargo & Company set a $102.00 price target on shares of Charles Schwab and gave the company an "overweight" rating in a research note on Friday, July 18th. Sixteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $99.60.

Charles Schwab 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.