The Charles Schwab Corporation (NYSE:SCHW) Shares Bought by Cetera Investment Advisers

Key Points

• Cetera Investment Advisers increased its stake in Charles Schwab by 5.2%, owning 399,124 shares valued at approximately $31.24 million after acquiring an additional 19,894 shares in the first quarter.
• Several analysts have raised their price targets for Charles Schwab, with estimates ranging from $99.00 to $117.00, reflecting bullish sentiment amid a consensus rating of "Moderate Buy."
• Charles Schwab recently authorized a $20 billion share repurchase plan, indicating confidence in its stock's valuation, and declared a quarterly dividend of $0.27 per share.

Cetera Investment Advisers grew its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 5.2% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 399,124 shares of the financial services provider's stock after purchasing an additional 19,894 shares during the quarter. Cetera Investment Advisers' holdings in Charles Schwab were worth $31,243,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Atwood & Palmer Inc. acquired a new stake in shares of Charles Schwab during the 1st quarter valued at approximately $25,000. Westside Investment Management Inc. raised its position in shares of Charles Schwab by 75.0% during the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 150 shares in the last quarter. WFA Asset Management Corp acquired a new stake in shares of Charles Schwab during the 1st quarter valued at approximately $33,000. Cornerstone Planning Group LLC raised its position in shares of Charles Schwab by 90.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock valued at $36,000 after acquiring an additional 220 shares in the last quarter. Finally, Beacon Capital Management LLC raised its position in shares of Charles Schwab by 53.1% during the 1st quarter. Beacon Capital Management LLC now owns 487 shares of the financial services provider's stock valued at $38,000 after acquiring an additional 169 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Analysts Set New Price Targets

SCHW has been the topic of several research reports. Keefe, Bruyette & Woods upped their price target on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research report on Monday, July 21st. JMP Securities increased their target price on Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research report on Monday, July 21st. Truist Financial increased their target price on Charles Schwab from $100.00 to $107.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Raymond James Financial reaffirmed an "outperform" rating and issued a $99.00 target price on shares of Charles Schwab in a research report on Friday, July 18th. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $117.00 target price (up from $83.00) on shares of Charles Schwab in a research report on Tuesday, July 15th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have assigned a buy rating to the company. According to MarketBeat.com, Charles Schwab has a consensus rating of "Moderate Buy" and an average price target of $98.65.

Charles Schwab Trading Up 0.6%

Shares of NYSE SCHW opened at $97.05 on Friday. The Charles Schwab Corporation has a 12 month low of $61.15 and a 12 month high of $98.28. The company has a market cap of $176.33 billion, a price-to-earnings ratio of 26.09, a P/E/G ratio of 0.93 and a beta of 0.93. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53. The business has a fifty day simple moving average of $90.34 and a 200-day simple moving average of $82.88.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced 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. The business had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. Charles Schwab's revenue was up 24.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.73 earnings per share. Sell-side analysts predict that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be paid a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.11%. The ex-dividend date of this dividend is Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Charles Schwab announced that its board has initiated a share buyback 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 reacquire up to 11.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Charles Schwab

In related news, Director Paula A. Sneed sold 8,647 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The stock was sold at an average price of $88.06, for a total value of $761,454.82. Following the transaction, the director directly owned 105,654 shares of the company's stock, valued at approximately $9,303,891.24. This trade represents a 7.57% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Peter J. Morgan III sold 10,176 shares of the firm's stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $87.39, for a total value of $889,280.64. The disclosure for this sale can be found here. Over the last three months, insiders sold 116,313 shares of company stock worth $10,264,091. 6.30% of the stock is currently owned by corporate insiders.

About Charles Schwab

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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