Strs Ohio Makes New Investment in The Charles Schwab Corporation $SCHW

Key Points

• Strs Ohio has initiated a new investment in The Charles Schwab Corporation, acquiring 967,300 shares valued at approximately $75.7 million, which represents 0.05% of the company.
• Charles Schwab reported a earnings per share (EPS) of $1.14 for the recent quarter, exceeding estimates, with revenue of $5.85 billion, up 24.8% compared to the same period last year.
• The company has announced a $20 billion share repurchase plan to buy back approximately 11.6% of its shares, indicating confidence in its stock valuation, alongside a quarterly dividend of $0.27 per share.

Strs Ohio bought a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 967,300 shares of the financial services provider's stock, valued at approximately $75,720,000. Strs Ohio owned approximately 0.05% of Charles Schwab at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of the company. Advisors Capital Management LLC increased its position in shares of Charles Schwab by 15.9% in the first quarter. Advisors Capital Management LLC now owns 134,787 shares of the financial services provider's stock valued at $10,551,000 after acquiring an additional 18,451 shares during the last quarter. WBI Investments LLC lifted its stake in Charles Schwab by 19.1% during the first quarter. WBI Investments LLC now owns 5,412 shares of the financial services provider's stock worth $424,000 after purchasing an additional 868 shares during the last quarter. Acadian Asset Management LLC lifted its stake in Charles Schwab by 1,674.4% during the first quarter. Acadian Asset Management LLC now owns 16,200 shares of the financial services provider's stock worth $1,265,000 after purchasing an additional 15,287 shares during the last quarter. IFM Investors Pty Ltd lifted its stake in Charles Schwab by 7.7% during the first quarter. IFM Investors Pty Ltd now owns 318,346 shares of the financial services provider's stock worth $24,920,000 after purchasing an additional 22,652 shares during the last quarter. Finally, Intech Investment Management LLC lifted its stake in Charles Schwab by 77.4% during the first quarter. Intech Investment Management LLC now owns 165,408 shares of the financial services provider's stock worth $12,948,000 after purchasing an additional 72,167 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors.

Charles Schwab Stock Performance

Shares of Charles Schwab stock opened at $92.23 on Thursday. The company has a market cap of $167.43 billion, a P/E ratio of 24.79, a PEG ratio of 0.92 and a beta of 0.96. The business has a 50-day moving average price of $95.31 and a two-hundred day moving average price of $86.56. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The Charles Schwab Corporation has a 1-year low of $61.16 and a 1-year high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating the consensus estimate of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The company had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same period last year, the business posted $0.73 EPS. The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. As a group, analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 24th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 11.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were given a dividend of $0.27 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is currently 29.03%.

Insider Activity

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the transaction, the chairman owned 590,734 shares of the company's stock, valued at $58,388,148.56. This trade represents a 22.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the transaction, the insider directly owned 11,923 shares in the company, valued at approximately $1,154,265.63. This represents a 34.01% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 298,214 shares of company stock worth $29,022,580. Corporate insiders own 6.30% of the company's stock.

Analysts Set New Price Targets

SCHW has been the subject of several recent analyst reports. William Blair cut Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and increased their price objective for the company from $65.00 to $82.00 in a report on Monday, June 9th. JMP Securities increased their price objective on Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a report on Monday, July 21st. Piper Sandler increased their price objective on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Finally, Raymond James Financial restated an "outperform" rating and issued a $99.00 price objective on shares of Charles Schwab in a report on Friday, July 18th. Sixteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Charles Schwab has an average rating of "Moderate Buy" and an average target price of $99.60.

Charles Schwab Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.