Svenska Handelsbanken AB publ Raises Position in The Charles Schwab Corporation $SCHW

Key Points

• Svenska Handelsbanken AB publ increased its stake in The Charles Schwab Corporation by 358.1% during Q2, now holding 56,230 shares valued at approximately $5.13 million.
• The Charles Schwab Corporation reported earnings per share of $1.14 for the last quarter, surpassing analyst expectations and showing a 24.8% increase in revenue year-over-year.
• Charles Schwab's Board of Directors announced a stock repurchase plan of up to $20 billion, indicating management's belief that the shares are undervalued.

Svenska Handelsbanken AB publ increased its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 358.1% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 56,230 shares of the financial services provider's stock after purchasing an additional 43,955 shares during the quarter. Charles Schwab comprises about 4.8% of Svenska Handelsbanken AB publ's portfolio, making the stock its 5th biggest position. Svenska Handelsbanken AB publ's holdings in Charles Schwab were worth $5,130,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also modified their holdings of the company. Bain Capital Public Equity Management II LLC bought a new stake in shares of Charles Schwab during the first quarter valued at approximately $79,605,000. Independent Advisor Alliance grew its stake in shares of Charles Schwab by 13.8% during the first quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider's stock valued at $3,061,000 after purchasing an additional 4,754 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH grew its stake in shares of Charles Schwab by 6.2% during the first quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock valued at $92,493,000 after purchasing an additional 68,858 shares during the last quarter. United Services Automobile Association grew its stake in shares of Charles Schwab by 14.1% during the first quarter. United Services Automobile Association now owns 39,512 shares of the financial services provider's stock valued at $3,074,000 after purchasing an additional 4,869 shares during the last quarter. Finally, World Investment Advisors boosted its stake in Charles Schwab by 7.6% in the first quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock valued at $12,760,000 after acquiring an additional 11,505 shares during the last quarter. 84.38% of the stock is owned by institutional investors.

Charles Schwab Trading Down 1.5%

SCHW opened at $92.10 on Tuesday. The firm's fifty day moving average is $95.40 and its two-hundred day moving average is $86.96. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The firm has a market cap of $167.18 billion, a PE ratio of 24.76, a price-to-earnings-growth ratio of 0.92 and a beta of 0.96. The Charles Schwab Corporation has a twelve month low of $62.37 and a twelve month high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The company had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same period last year, the business posted $0.73 earnings per share. The business's revenue for the quarter was up 24.8% compared to the same quarter last year. Equities research 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 stock repurchase plan on Thursday, July 24th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Insider Buying and Selling at Charles Schwab

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction 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 sale, the chairman directly owned 590,734 shares in the company, valued at $58,388,148.56. This trade represents a 22.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Paul V. Woolway sold 3,205 shares of the firm's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $95.20, for a total transaction of $305,116.00. Following the sale, the insider owned 37,983 shares in the company, valued at approximately $3,615,981.60. The trade was a 7.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 298,214 shares of company stock valued at $29,022,580 over the last quarter. 6.30% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on SCHW shares. Bank of America raised their price objective on shares of Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research note on Monday, July 21st. Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. Truist Financial raised their price objective on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research note on Friday, August 15th. William Blair cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. Finally, Wells Fargo & Company set a $102.00 price objective on shares of Charles Schwab and gave the company an "overweight" rating in a research note on Friday, July 18th. Sixteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target 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.

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