Sculptor Capital LP Invests $11.96 Million in The Charles Schwab Corporation $SCHW

Key Points

• Sculptor Capital LP has invested approximately $11.96 million in The Charles Schwab Corporation, acquiring 152,783 shares of the financial services provider during the first quarter.
• In the same period, other large investors, such as Vanguard Group and Wellington Management, also increased their stakes significantly in Charles Schwab, indicating strong institutional interest.
• Charles Schwab has recently authorized a $20 billion stock buyback program and declared a quarterly dividend of $0.27 per share, reflecting robust financial performance and a commitment to returning value to shareholders.

Sculptor Capital LP bought a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 152,783 shares of the financial services provider's stock, valued at approximately $11,960,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in SCHW. Atwood & Palmer Inc. bought a new position in Charles Schwab in the 1st quarter worth approximately $25,000. Westside Investment Management Inc. lifted its position in shares of Charles Schwab by 75.0% during the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 150 shares during the last quarter. Stone House Investment Management LLC acquired a new stake in shares of Charles Schwab during the 1st quarter valued at $31,000. Activest Wealth Management lifted its holdings in shares of Charles Schwab by 6,650.0% in the first quarter. Activest Wealth Management now owns 405 shares of the financial services provider's stock valued at $32,000 after purchasing an additional 399 shares in the last quarter. Finally, WFA Asset Management Corp purchased a new stake in shares of Charles Schwab in the first quarter valued at $33,000. 84.38% of the stock is owned by institutional investors.

Insider Activity

In other news, General Counsel Peter J. Morgan III sold 50,016 shares of the business's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total transaction of $4,851,552.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Paul V. Woolway sold 3,290 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $96.06, for a total transaction of $316,037.40. Following the completion of the transaction, the insider owned 41,188 shares in the company, valued at approximately $3,956,519.28. This trade represents a 7.40% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 295,009 shares of company stock worth $28,717,464. 6.30% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on SCHW. William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. JMP Securities increased their target price on shares of Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research report on Monday, July 21st. Piper Sandler raised their price target on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research report on Tuesday, July 15th. Cowen reiterated a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. Finally, Wells Fargo & Company set a $102.00 target price on shares of Charles Schwab and gave the company an "overweight" rating in a research note on Friday, July 18th. Sixteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $99.60.

Charles Schwab Trading Down 0.1%

Shares of SCHW stock traded down $0.06 on Wednesday, hitting $96.06. The stock had a trading volume of 7,261,085 shares, compared to its average volume of 9,887,096. 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 $174.36 billion, a P/E ratio of 25.82, a PEG ratio of 0.94 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 company has a fifty day moving average price of $94.87 and a two-hundred day moving average price of $86.06.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating the consensus estimate of $1.10 by $0.04. The business had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The firm's revenue was up 24.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $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 share buyback plan on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its shares are undervalued.

Charles Schwab Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders 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 annualized dividend and a yield of 1.1%. Charles Schwab's payout ratio is 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.