Shepherd Street Advisors LLC Invests $1.76 Million in The Charles Schwab Corporation $SCHW

Key Points

• Shepherd Street Advisors opened a new position in Charles Schwab, buying 17,623 shares valued at about $1.76 million. The stake represents roughly 1.7% of the firm’s portfolio.
• Charles Schwab reported better-than-expected quarterly results, posting EPS of $1.43 versus estimates of $1.39 and revenue of $6.48 billion versus $6.39 billion expected. Revenue rose 15.8% year over year.
• The company also paid a quarterly dividend of $0.32 per share, or $1.28 annualized, for a yield of about 1.5%. Meanwhile, analysts remain generally positive, with a consensus rating of Moderate Buy and an average target price of $114.30.

Shepherd Street Advisors LLC purchased a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 17,623 shares of the financial services provider's stock, valued at approximately $1,761,000. Charles Schwab comprises about 1.7% of Shepherd Street Advisors LLC's portfolio, making the stock its 19th largest position.

Several other institutional investors have also modified their holdings of the company. Vanguard Group Inc. grew its position in shares of Charles Schwab by 0.3% during the third quarter. Vanguard Group Inc. now owns 151,585,214 shares of the financial services provider's stock worth $14,471,840,000 after acquiring an additional 403,133 shares during the last quarter. State Street Corp lifted its holdings in Charles Schwab by 1.0% in the third quarter. State Street Corp now owns 73,156,290 shares of the financial services provider's stock worth $6,984,231,000 after purchasing an additional 691,671 shares during the period. Geode Capital Management LLC lifted its holdings in Charles Schwab by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider's stock worth $3,747,646,000 after purchasing an additional 98,242 shares during the period. Fisher Asset Management LLC lifted its holdings in Charles Schwab by 0.8% in the fourth quarter. Fisher Asset Management LLC now owns 21,818,514 shares of the financial services provider's stock worth $2,179,888,000 after purchasing an additional 171,926 shares during the period. Finally, Primecap Management Co. CA lifted its holdings in Charles Schwab by 11.4% in the third quarter. Primecap Management Co. CA now owns 21,209,187 shares of the financial services provider's stock worth $2,024,841,000 after purchasing an additional 2,174,381 shares during the period. Institutional investors own 84.38% of the company's stock.

Charles Schwab Price Performance

Shares of NYSE SCHW opened at $87.51 on Wednesday. The Charles Schwab Corporation has a twelve month low of $83.96 and a twelve month high of $107.50. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $152.20 billion, a price-to-earnings ratio of 17.36, a PEG ratio of 0.84 and a beta of 0.77. The firm has a 50-day moving average of $92.05 and a two-hundred day moving average of $95.56.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, beating analysts' consensus estimates of $1.39 by $0.04. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The company had revenue of $6.48 billion during the quarter, compared to the consensus estimate of $6.39 billion. During the same period in the prior year, the company earned $1.04 EPS. Charles Schwab's revenue was up 15.8% on a year-over-year basis. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. As a group, analysts expect that The Charles Schwab Corporation will post 6.12 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Friday, May 8th. Charles Schwab's dividend payout ratio is presently 25.40%.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, insider Paul V. Woolway sold 7,941 shares of the company's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $100.00, for a total value of $794,100.00. Following the completion of the sale, the insider directly owned 29,866 shares of the company's stock, valued at approximately $2,986,600. This represents a 21.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the company's stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total transaction of $228,312.00. Following the completion of the sale, the director directly owned 177,508 shares of the company's stock, valued at $16,082,224.80. The trade was a 1.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 59,700 shares of company stock valued at $5,889,131. 6.30% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on SCHW shares. Weiss Ratings raised shares of Charles Schwab from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 23rd. Keefe, Bruyette & Woods started coverage on shares of Charles Schwab in a report on Wednesday, April 8th. They issued an "outperform" rating and a $110.00 price objective for the company. Morgan Stanley reduced their price objective on shares of Charles Schwab from $135.00 to $125.00 and set an "overweight" rating for the company in a report on Friday, April 17th. TD Cowen upped their price objective on shares of Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Finally, Truist Financial reduced their price objective on shares of Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a report on Wednesday, April 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $114.30.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: Schwab’s new 24/7 crypto futures offering could attract more active traders and help the company expand its product suite in a fast-growing market. Charles Schwab debuts 24/7 Bitcoin, Ether, Solana and Ripple futures, targets spot crypto for advisors next year
• Positive Sentiment: Reports that Schwab is expected to extend its Colonial title sponsorship suggest continued brand visibility and marketing support for a long-running event tied to the company name. Charles Schwab expected to extend Colonial title sponsorship
• Neutral Sentiment: Shareholders voted to keep Schwab’s staggered board structure, a governance decision that is unlikely to affect near-term fundamentals but may remain a topic for some investors. Charles Schwab Keeps Staggered Board As Stock Trades Below Analyst Targets
• Neutral Sentiment: Golf coverage around the Charles Schwab Challenge is mostly brand-related and does not appear to materially change the investment outlook for SCHW. Russell Henley wins Charles Schwab Challenge, gets tournament’s traditional custom car

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.

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