State of New Jersey Common Pension Fund D Has $45.56 Million Stake in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• The State of New Jersey Common Pension Fund D reduced its stake in The Charles Schwab Corporation by 1.0%, now holding 581,976 shares valued at approximately $45.56 million.
• Charles Schwab's board has initiated a large stock repurchase program, allowing for the buyback of up to $20 billion of its outstanding shares, indicating confidence in the stock's valuation.
• The company reported quarterly earnings of $1.14 per share, exceeding expectations, and announced a quarterly dividend of $0.27 per share with a yield of 1.1%.

State of New Jersey Common Pension Fund D reduced its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 1.0% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 581,976 shares of the financial services provider's stock after selling 6,067 shares during the quarter. State of New Jersey Common Pension Fund D's holdings in Charles Schwab were worth $45,557,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. American Century Companies Inc. lifted its holdings in Charles Schwab by 14.4% during the 1st quarter. American Century Companies Inc. now owns 3,471,307 shares of the financial services provider's stock worth $271,734,000 after buying an additional 437,351 shares in the last quarter. Ethic Inc. increased its stake in shares of Charles Schwab by 1.7% in the 1st quarter. Ethic Inc. now owns 155,389 shares of the financial services provider's stock valued at $12,069,000 after buying an additional 2,591 shares during the period. Dimensional Fund Advisors LP raised its position in shares of Charles Schwab by 12.8% during the first quarter. Dimensional Fund Advisors LP now owns 5,478,177 shares of the financial services provider's stock worth $428,791,000 after acquiring an additional 623,113 shares during the last quarter. Horizon Investments LLC lifted its stake in shares of Charles Schwab by 16.2% during the first quarter. Horizon Investments LLC now owns 29,779 shares of the financial services provider's stock valued at $2,324,000 after acquiring an additional 4,155 shares during the period. Finally, Legal Advantage Investments Inc. boosted its holdings in Charles Schwab by 6.3% in the first quarter. Legal Advantage Investments Inc. now owns 67,900 shares of the financial services provider's stock valued at $5,315,000 after acquiring an additional 4,000 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Insider Activity at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction 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 sale, the chairman directly owned 590,734 shares in the company, valued at approximately $58,388,148.56. The trade was a 22.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Peter J. Morgan III sold 10,176 shares of the business's stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $87.39, for a total transaction of $889,280.64. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 308,016 shares of company stock worth $29,341,433. 6.30% of the stock is currently owned by corporate insiders.

Charles Schwab Trading Up 2.3%

SCHW opened at $97.80 on Friday. The stock has a market capitalization of $177.53 billion, a P/E ratio of 26.29, a P/E/G ratio of 0.92 and a beta of 0.96. The company has a current ratio of 0.55, a quick ratio of 0.53 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's fifty day simple moving average is $92.93 and its 200 day simple moving average is $84.79.

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 the consensus estimate of $1.10 by $0.04. The firm had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%. The company's revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter last year, the business posted $0.73 EPS. As a group, research analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab announced that its board has initiated a stock repurchase program on Thursday, July 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its stock is undervalued.

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is currently 29.03%.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Piper Sandler boosted their price objective on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a report on Tuesday, July 15th. Morgan Stanley boosted their price target on shares of Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Citigroup raised their price objective on shares of Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a research note on Monday, July 21st. JPMorgan Chase & Co. upped their target price on shares of Charles Schwab from $92.00 to $95.00 and gave the company an "overweight" rating in a research report on Monday, April 21st. Finally, The Goldman Sachs Group raised Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 price target on the stock in a research note on Friday, April 25th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have issued a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $99.35.

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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