State Street Corp Decreases Position in The Charles Schwab Corporation $SCHW

Key Points

• State Street Corp trimmed its stake in Charles Schwab by 0.7% in the fourth quarter, but it still held 72.6 million shares valued at about $7.26 billion. Institutional ownership remains high, with hedge funds and other investors owning 84.38% of the stock.
• 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, and the company reaffirmed FY 2026 EPS guidance of 5.7 to 5.8.
• The company also paid a quarterly dividend of $0.32 per share, equal to an annualized yield of about 1.4%. Analyst sentiment remains constructive overall, with a consensus Moderate Buy rating and a target price of $116.

State Street Corp cut its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 0.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 72,626,508 shares of the financial services provider's stock after selling 529,782 shares during the period. State Street Corp owned 4.09% of Charles Schwab worth $7,256,114,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. Brookwood Investment Group LLC grew its stake in Charles Schwab by 192.6% in the fourth quarter. Brookwood Investment Group LLC now owns 12,236 shares of the financial services provider's stock worth $1,222,000 after purchasing an additional 8,054 shares in the last quarter. King Luther Capital Management Corp boosted its position in shares of Charles Schwab by 34.4% in the 3rd quarter. King Luther Capital Management Corp now owns 296,409 shares of the financial services provider's stock worth $28,298,000 after purchasing an additional 75,820 shares in the last quarter. Juno Financial Group LLC purchased a new position in Charles Schwab in the 4th quarter worth $2,591,000. Swiss Life Asset Management Ltd raised its stake in Charles Schwab by 4.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 407,179 shares of the financial services provider's stock worth $40,681,000 after acquiring an additional 16,482 shares during the last quarter. Finally, Nordea Investment Management AB raised its stake in Charles Schwab by 13.0% in the 4th quarter. Nordea Investment Management AB now owns 3,437,222 shares of the financial services provider's stock worth $344,410,000 after acquiring an additional 396,358 shares during the last quarter. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Charles Schwab

In other news, insider Nigel J. Murtagh sold 41,297 shares of the company's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total value of $4,088,403.00. Following the completion of the sale, the insider directly owned 57,972 shares of the company's stock, valued at approximately $5,739,228. This represents a 41.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul V. Woolway sold 7,942 shares of the stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $98.00, for a total transaction of $778,316.00. Following the transaction, the insider directly owned 29,866 shares of the company's stock, valued at $2,926,868. This represents a 21.01% 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. Insiders sold 59,700 shares of company stock worth $5,889,131 over the last 90 days. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Trading Up 2.6%

Shares of Charles Schwab stock opened at $91.04 on Friday. The stock has a market cap of $158.32 billion, a P/E ratio of 18.06, a P/E/G ratio of 0.84 and a beta of 0.77. The stock's 50 day simple moving average is $91.05 and its 200-day simple moving average is $95.25. The Charles Schwab Corporation has a 1-year low of $83.96 and a 1-year high of $107.50. 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 announced its earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.39 by $0.04. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The company had revenue of $6.48 billion for the quarter, compared to analyst estimates of $6.39 billion. During the same quarter in the previous year, the company earned $1.04 earnings per share. The firm's quarterly revenue was up 15.8% compared to the same quarter last year. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Analysts predict that The Charles Schwab Corporation will post 6.13 EPS for the current fiscal year.

Charles Schwab Announces Dividend

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

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on SCHW shares. UBS Group reduced their price objective on Charles Schwab from $125.00 to $119.00 and set a "buy" rating for the company in a research note on Wednesday, April 8th. Weiss Ratings upgraded Charles Schwab from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 23rd. Raymond James Financial lifted their price objective on Charles Schwab from $126.00 to $137.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Barclays raised their target price on Charles Schwab from $117.00 to $127.00 and gave the company an "overweight" rating in a research report on Friday, May 15th. Finally, Argus set a $108.00 target price on Charles Schwab in a research report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $116.00.

Charles Schwab News Summary

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

• Positive Sentiment: Schwab reported monthly activity highlights for May, and the company said the month set records, reinforcing confidence in client growth and trading momentum. Schwab Reports Monthly Activity Highlights
• Positive Sentiment: Market commentary says the stock is also getting a lift from a broader rebound in financials and renewed investor focus on Schwab’s strong client and trading trends. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum
• Positive Sentiment: Recent analyst actions have been constructive, with firms raising earnings estimates and maintaining buy-style ratings, which supports the bullish setup for SCHW. Charles Schwab stock research page
• Neutral Sentiment: Schwab also announced the closure and liquidation of its Schwab Ariel Opportunities ETF, a fund-level action that appears unlikely to materially affect the parent company’s near-term stock performance. Schwab Asset Management Announces Closure and Liquidation of the Schwab Ariel Opportunities ETF (SAEF)
• Negative Sentiment: There is still some caution in the background from mixed institutional positioning and heavy insider selling over the past six months, which could limit upside if sentiment weakens. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum

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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