State of Wisconsin Investment Board Lowers Stake in The Charles Schwab Corporation $SCHW

Key Points

• State of Wisconsin Investment Board cut its Charles Schwab stake by 9.4% in the fourth quarter, selling 95,008 shares and leaving it with 911,566 shares worth about $91.1 million.
• Several other institutional investors also adjusted positions, while hedge funds and other institutions still own 84.38% of Charles Schwab’s stock.
• Charles Schwab reported better-than-expected quarterly results, with EPS of $1.43 versus $1.39 expected and revenue of $6.48 billion, and it also highlighted strong operating momentum with record client assets and rising net new assets.

State of Wisconsin Investment Board reduced its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 9.4% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 911,566 shares of the financial services provider's stock after selling 95,008 shares during the quarter. State of Wisconsin Investment Board owned approximately 0.05% of Charles Schwab worth $91,075,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the stock. Souders Financial Advisors boosted its stake in shares of Charles Schwab by 2.3% during the fourth quarter. Souders Financial Advisors now owns 4,341 shares of the financial services provider's stock valued at $434,000 after purchasing an additional 98 shares during the period. Lantz Financial LLC boosted its stake in shares of Charles Schwab by 3.1% during the fourth quarter. Lantz Financial LLC now owns 3,243 shares of the financial services provider's stock valued at $324,000 after purchasing an additional 99 shares during the period. Roberts Wealth Advisors LLC boosted its stake in shares of Charles Schwab by 0.5% during the fourth quarter. Roberts Wealth Advisors LLC now owns 22,961 shares of the financial services provider's stock valued at $2,294,000 after purchasing an additional 105 shares during the period. Essex Financial Services Inc. boosted its stake in shares of Charles Schwab by 0.8% during the fourth quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider's stock valued at $1,282,000 after purchasing an additional 105 shares during the period. Finally, JFS Wealth Advisors LLC boosted its stake in shares of Charles Schwab by 0.4% during the fourth quarter. JFS Wealth Advisors LLC now owns 24,626 shares of the financial services provider's stock valued at $2,460,000 after purchasing an additional 107 shares during the period. 84.38% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, Director Frank C. Herringer sold 2,520 shares of the 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 approximately $16,082,224.80. This represents a 1.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Nigel J. Murtagh sold 41,297 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the sale, the insider directly owned 57,972 shares of the company's stock, valued at approximately $5,739,228. The trade was a 41.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 59,700 shares of company stock valued at $5,889,131. 6.30% of the stock is currently owned by insiders.

Charles Schwab Stock Up 2.9%

NYSE:SCHW opened at $93.57 on Wednesday. The Charles Schwab Corporation has a 1-year low of $83.96 and a 1-year high of $107.50. The company has a 50-day moving average of $90.98 and a 200 day moving average of $95.30. The firm has a market cap of $162.73 billion, a PE ratio of 18.57, a price-to-earnings-growth ratio of 0.86 and a beta of 0.78. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Thursday, April 16th. The financial services provider reported $1.43 EPS for the quarter, beating the consensus estimate of $1.39 by $0.04. The business had revenue of $6.48 billion during the quarter, compared to analyst estimates of $6.39 billion. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The company's quarterly revenue was up 15.8% on a year-over-year basis. During the same period in the prior year, the firm posted $1.04 earnings per share. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. As a group, research analysts anticipate that The Charles Schwab Corporation will post 6.13 EPS for the current fiscal year.

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were given a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Friday, May 8th. Charles Schwab's dividend payout ratio is presently 25.40%.

Wall Street Analysts Forecast Growth

SCHW has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods started coverage on shares of Charles Schwab in a research note on Wednesday, April 8th. They set an "outperform" rating and a $110.00 target price for the company. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $128.00 price objective on shares of Charles Schwab in a research note on Friday, May 15th. Weiss Ratings raised shares of Charles Schwab from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 23rd. UBS Group lowered their price objective on shares of Charles Schwab from $125.00 to $119.00 and set a "buy" rating for the company in a research note on Wednesday, April 8th. Finally, Piper Sandler upped their price objective on shares of Charles Schwab from $103.00 to $105.00 and gave the stock a "neutral" rating in a research note on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Charles Schwab presently has a consensus rating of "Moderate Buy" and a consensus target price of $116.00.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: May operating data showed strong momentum, with client assets reaching a record $13.14 trillion, core net new assets jumping 43% year over year, and new brokerage accounts continuing to climb. Schwab Stock Gains 2.7% as Client Assets, NNA Surge in May
• Positive Sentiment: Another update said Charles Schwab’s core net new assets rose 49% year over year in May, reinforcing the idea that the firm is still attracting fresh client money. Charles Schwab's core net new assets rise 49% Y/Y in May
• Positive Sentiment: Investor commentary also highlighted an all-time record in Schwab’s most important growth metric, suggesting continued fundamental strength and supporting the stock’s recent rebound. Charles Schwab's Most Important Growth Metric Just Set An All-Time Record
• Neutral Sentiment: Coverage featuring Schwab strategist Liz Ann Sonders likely reflects ongoing investor attention to the company’s market views, but it did not include a clear company-specific catalyst. Watch CNBC's full interview with Neuberger Berman’s Jeff Blazek and Charles Schwab’s Liz Ann Sonders
• Neutral Sentiment: Reports about Schwab expanding its Maitland, Florida campus suggest continued investment in operations, but the near-term stock impact is likely limited. Charles Schwab preps expansion plans in Maitland
• Neutral Sentiment: A broader industry piece on training financial advisors may be relevant to Schwab’s wealth-management business, but it does not indicate a direct earnings or guidance change. Recruiting Experienced Financial Advisors Is Expensive. Now More Wealth Firms Are Investing in Training.

About Charles Schwab

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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