Sheets Smith Wealth Management Has $1.40 Million Stake in The Charles Schwab Corporation $SCHW

Key Points

• Sheets Smith Wealth Management increased its holdings in The Charles Schwab Corporation by 92.3%, owning $1.40 million worth of shares after acquiring additional stock recently.
• Institutional investors collectively own 84.38% of Charles Schwab's stock, with several major firms like Vanguard and Wellington making significant purchases in the first quarter.
• Charles Schwab's board has approved a $20 billion stock repurchase plan, indicating that management believes its stock is undervalued, while the company also recently declared a quarterly dividend of $0.27 per share.

Sheets Smith Wealth Management boosted its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 92.3% in the second quarter, according to its most recent filing with the SEC. The firm owned 15,325 shares of the financial services provider's stock after acquiring an additional 7,356 shares during the period. Sheets Smith Wealth Management's holdings in Charles Schwab were worth $1,398,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Vanguard Group Inc. grew its stake in shares of Charles Schwab by 15.4% during the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after purchasing an additional 19,817,022 shares during the period. Wellington Management Group LLP grew its position in shares of Charles Schwab by 595.7% during the 1st quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock worth $1,212,461,000 after buying an additional 13,262,309 shares during the period. Primecap Management Co. CA grew its position in shares of Charles Schwab by 229.3% during the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock worth $1,096,083,000 after buying an additional 9,749,728 shares during the period. Price T Rowe Associates Inc. MD grew its position in shares of Charles Schwab by 12.3% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock worth $6,422,795,000 after buying an additional 8,954,248 shares during the period. Finally, Nuveen LLC acquired a new position in shares of Charles Schwab during the 1st quarter worth about $440,699,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on SCHW shares. Piper Sandler boosted their price objective on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Wells Fargo & Company set a $102.00 price target on shares of Charles Schwab and gave the company an "overweight" rating in a report on Friday, July 18th. Raymond James Financial reissued an "outperform" rating and issued a $99.00 price target on shares of Charles Schwab in a report on Friday, July 18th. William Blair cut Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. Finally, Deutsche Bank Aktiengesellschaft decreased their target price on Charles Schwab from $114.00 to $113.00 and set a "buy" rating for the company in a research note on Tuesday, September 16th. Sixteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Charles Schwab presently has an average rating of "Moderate Buy" and an average price target of $100.00.

Charles Schwab Price Performance

Shares of NYSE SCHW opened at $93.89 on Wednesday. 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 firm has a market cap of $170.43 billion, a PE ratio of 25.24, a PEG ratio of 0.93 and a beta of 0.96. The company has a fifty day moving average price of $95.50 and a 200 day moving average price of $87.59. The Charles Schwab Corporation has a 1-year low of $62.41 and a 1-year high of $99.59.

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

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors 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 annualized dividend and a yield of 1.2%. Charles Schwab's dividend payout ratio is presently 29.03%.

Charles Schwab announced that its board has approved a stock repurchase plan on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to reacquire up to 11.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at Charles Schwab

In other news, insider Jonathan S. Beatty sold 6,144 shares of the stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total transaction of $594,800.64. Following the completion of the transaction, the insider directly owned 11,923 shares in the company, valued at $1,154,265.63. This represents a 34.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the transaction, the chairman directly owned 590,734 shares of the company's stock, valued at $58,388,148.56. This trade represents a 22.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 267,213 shares of company stock valued at $26,232,180 in the last three months. 6.30% of the stock is currently owned by insiders.

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.

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