Independent Advisor Alliance Has $3.06 Million Stock Position in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Independent Advisor Alliance increased its stake in The Charles Schwab Corporation by 13.8%, owning 39,103 shares valued at $3,061,000 after acquiring an additional 4,754 shares in the first quarter.
• Charles Schwab's Board of Directors approved a $20 billion stock buyback plan, allowing the company to repurchase up to 11.6% of its shares, indicating confidence in the stock's undervaluation.
• Several research firms set optimistic price targets for Charles Schwab, with Morgan Stanley raising its target to $131 and the consensus price target now at $99.35.

Independent Advisor Alliance raised its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 13.8% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 39,103 shares of the financial services provider's stock after acquiring an additional 4,754 shares during the quarter. Independent Advisor Alliance's holdings in Charles Schwab were worth $3,061,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds also recently bought and sold shares of the business. Atwood & Palmer Inc. purchased a new stake in Charles Schwab during the first quarter valued at about $25,000. Westside Investment Management Inc. lifted its stake in Charles Schwab by 75.0% during the first quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after buying an additional 150 shares in the last quarter. WFA Asset Management Corp purchased a new stake in Charles Schwab during the first quarter valued at about $33,000. Cornerstone Planning Group LLC lifted its stake in Charles Schwab by 90.5% during the first quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock valued at $36,000 after buying an additional 220 shares in the last quarter. Finally, Beacon Capital Management LLC lifted its stake in Charles Schwab by 53.1% during the first quarter. Beacon Capital Management LLC now owns 487 shares of the financial services provider's stock valued at $38,000 after buying an additional 169 shares in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms have commented on SCHW. Truist Financial upped their price objective on shares of Charles Schwab from $100.00 to $107.00 and gave the company a "buy" rating in a research note on Monday, July 21st. The Goldman Sachs Group raised shares of Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 price target for the company in a research report on Friday, April 25th. Barclays increased their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. JPMorgan Chase & Co. increased their price target on shares of Charles Schwab from $92.00 to $95.00 and gave the stock an "overweight" rating in a research report on Monday, April 21st. Finally, Bank of America increased their price target on shares of Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research report on Monday, July 21st. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and sixteen have issued a buy rating to the company. According to MarketBeat, Charles Schwab presently has a consensus rating of "Moderate Buy" and an average price target of $99.35.

Charles Schwab Stock Down 3.1%

NYSE:SCHW traded down $3.06 during mid-day trading on Wednesday, reaching $95.63. The stock had a trading volume of 12,455,199 shares, compared to its average volume of 9,176,303. The business's 50 day moving average is $92.72 and its 200 day moving average is $84.69. The Charles Schwab Corporation has a fifty-two week low of $61.16 and a fifty-two week high of $99.59. The stock has a market cap of $173.59 billion, a P/E ratio of 25.71, a PEG ratio of 0.95 and a beta of 0.96. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly 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 for the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter last year, the company posted $0.73 earnings per share. The company's revenue for the quarter was up 24.8% compared to the same quarter last year. As a group, sell-side analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 1.1%. The ex-dividend date is Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Charles Schwab announced that its Board of Directors has initiated a stock repurchase program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Paul V. Woolway sold 10,129 shares of the stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total transaction of $911,711.29. Following the transaction, the insider owned 39,154 shares in the company, valued at $3,524,251.54. This trade represents a 20.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the transaction, the chairman owned 590,734 shares in the company, valued at approximately $58,388,148.56. This trade represents a 22.74% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 308,016 shares of company stock valued at $29,341,433. 6.30% of the stock is owned by company insiders.

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.