Spectrum Financial Alliance Ltd LLC Has $7.45 Million Stock Holdings in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Spectrum Financial Alliance Ltd LLC reduced its holdings in The Charles Schwab Corporation by 7.0% to own 95,179 shares worth approximately $7.45 million, making it the company's 10th largest holding.
• Several hedge funds, including Kovitz Investment Group Partners LLC and FMR LLC, significantly increased their stakes in Charles Schwab during the fourth quarter, highlighting investor confidence in the company.
• Charles Schwab announced a $20 billion stock buyback plan, indicating management believes the stock is undervalued, and also declared a quarterly dividend of $0.27 per share.

Spectrum Financial Alliance Ltd LLC reduced its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 7.0% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 95,179 shares of the financial services provider's stock after selling 7,197 shares during the period. Charles Schwab comprises 2.4% of Spectrum Financial Alliance Ltd LLC's portfolio, making the stock its 10th largest holding. Spectrum Financial Alliance Ltd LLC's holdings in Charles Schwab were worth $7,451,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in SCHW. Kovitz Investment Group Partners LLC increased its holdings in Charles Schwab by 354.5% during the fourth quarter. Kovitz Investment Group Partners LLC now owns 11,005,881 shares of the financial services provider's stock valued at $814,545,000 after buying an additional 8,584,173 shares during the last quarter. FMR LLC boosted its position in shares of Charles Schwab by 69.4% in the fourth quarter. FMR LLC now owns 9,700,013 shares of the financial services provider's stock worth $717,898,000 after purchasing an additional 3,974,940 shares during the period. Marshall Wace LLP boosted its position in shares of Charles Schwab by 742.0% in the fourth quarter. Marshall Wace LLP now owns 4,181,202 shares of the financial services provider's stock worth $309,451,000 after purchasing an additional 3,684,640 shares during the period. PointState Capital LP bought a new position in shares of Charles Schwab in the fourth quarter worth approximately $237,280,000. Finally, Farallon Capital Management LLC bought a new position in shares of Charles Schwab in the fourth quarter worth approximately $234,538,000. 84.38% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, Director Paula A. Sneed sold 8,647 shares of the stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $88.06, for a total value of $761,454.82. Following the sale, the director owned 105,654 shares of the company's stock, valued at approximately $9,303,891.24. This represents a 7.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Paul V. Woolway sold 3,290 shares of the stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $90.95, for a total transaction of $299,225.50. Following the completion of the sale, the insider directly owned 35,864 shares in the company, valued at approximately $3,261,830.80. This represents a 8.40% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 116,313 shares of company stock valued at $10,264,091. 6.30% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Citigroup upped their price target on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Piper Sandler upped their price target on shares of Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 15th. Barclays upped their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. TD Securities upped their price target on shares of Charles Schwab from $95.00 to $113.00 and gave the stock a "buy" rating in a research report on Tuesday, May 20th. Finally, Bank of America upped their target price on shares of Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research report on Monday, July 21st. Two research analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have issued a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $98.65.

Charles Schwab Price Performance

Charles Schwab stock opened at $97.05 on Friday. The company has a market cap of $176.33 billion, a price-to-earnings ratio of 26.09, a PEG ratio of 0.93 and a beta of 0.93. The firm's fifty day moving average is $90.34 and its 200 day moving average is $82.81. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53. The Charles Schwab Corporation has a 52-week low of $61.15 and a 52-week high of $98.28.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. The company had revenue of $5.85 billion for 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 19.73%. Charles Schwab's revenue was up 24.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.73 earnings per share. Sell-side analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab announced that its Board of Directors has authorized a stock buyback plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be paid a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.11%. The ex-dividend date is Friday, August 8th. Charles Schwab's dividend payout ratio is currently 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.

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