Russell Investments Group Ltd. Boosts Stake in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Russell Investments Group Ltd. increased its stake in Charles Schwab by 73.4%, acquiring 689,222 additional shares, bringing its total ownership to approximately 1.63 million shares valued at $127.4 million.
• Charles Schwab's Board of Directors approved a $20 billion stock buyback program, enabling the repurchase of up to 11.6% of its stock, indicating confidence in its valuation.
• In its latest earnings report, Charles Schwab beat earnings expectations with $1.14 EPS, and its revenue increased by 24.8% year-over-year to $5.85 billion.

Russell Investments Group Ltd. increased its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 73.4% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,628,057 shares of the financial services provider's stock after buying an additional 689,222 shares during the quarter. Russell Investments Group Ltd. owned about 0.09% of Charles Schwab worth $127,381,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Atwood & Palmer Inc. purchased a new stake in Charles Schwab in the first quarter valued at $25,000. Westside Investment Management Inc. raised its position in Charles Schwab by 75.0% in the first quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 150 shares during the period. Stone House Investment Management LLC purchased a new stake in Charles Schwab in the first quarter valued at $31,000. WFA Asset Management Corp purchased a new stake in Charles Schwab in the first quarter valued at $33,000. Finally, Cornerstone Planning Group LLC raised its position in Charles Schwab by 90.5% in the first quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock valued at $36,000 after purchasing an additional 220 shares during the period. Hedge funds and other institutional investors own 84.38% of the company's stock.

Insider Buying and Selling at Charles Schwab

In other news, General Counsel Peter J. Morgan III sold 10,176 shares of the company'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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Nigel J. Murtagh sold 24,096 shares of the company's stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total value of $2,359,239.36. Following the transaction, the insider directly owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 308,016 shares of company stock worth $29,341,433. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Stock Up 2.3%

Shares of NYSE:SCHW traded up $2.21 on Thursday, hitting $97.80. 11,310,032 shares of the company's stock were exchanged, compared to its average volume of 9,257,840. The firm's 50-day moving average is $92.93 and its 200 day moving average is $84.79. The company has a market capitalization of $177.53 billion, a PE ratio of 26.29, a P/E/G ratio of 0.92 and a beta of 0.96. The Charles Schwab Corporation has a 1-year low of $61.16 and a 1-year high of $99.59. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.53 and a current ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.04. The business had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%. The business's quarterly revenue was up 24.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.73 EPS. Sell-side analysts predict that The Charles Schwab Corporation will post 4.22 EPS for the current year.

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

Charles Schwab Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be given 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 is currently 29.03%.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Cowen restated a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Morgan Stanley lifted their target price on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Wells Fargo & Company set a $102.00 price objective on Charles Schwab and gave the company an "overweight" rating in a research note on Friday, July 18th. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and lifted their price objective for the company from $65.00 to $82.00 in a research note on Monday, June 9th. Finally, Truist Financial lifted their price objective on Charles Schwab from $100.00 to $107.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Two research analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have given a buy rating to the stock. Based on data from MarketBeat.com, Charles Schwab currently has an average rating of "Moderate Buy" and a consensus target price of $99.35.

Charles Schwab 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.