Annandale Capital LLC Sells 10,100 Shares of The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Annandale Capital LLC reduced its stake in The Charles Schwab Corporation by 16.9%, now holding 49,748 shares valued at approximately $3.89 million.
• Charles Schwab's share price target was raised by several firms, with Truist Financial setting a new target of $107 and maintaining a "buy" rating, while the average analyst rating is "Moderate Buy".
• The company announced a $20 billion share repurchase program, showing confidence in its valuation, and declared a quarterly dividend of $0.27 per share.

Annandale Capital LLC reduced its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 16.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 49,748 shares of the financial services provider's stock after selling 10,100 shares during the period. Annandale Capital LLC's holdings in Charles Schwab were worth $3,894,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in the business. Vanguard Group Inc. increased its stake in Charles Schwab by 15.4% during the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock valued at $11,616,380,000 after acquiring an additional 19,817,022 shares during the period. Primecap Management Co. CA increased its stake in Charles Schwab by 229.3% during the first quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock valued at $1,096,083,000 after acquiring an additional 9,749,728 shares during the period. Kovitz Investment Group Partners LLC increased its stake in Charles Schwab by 354.5% during the fourth quarter. Kovitz Investment Group Partners LLC now owns 11,005,881 shares of the financial services provider's stock valued at $814,545,000 after acquiring an additional 8,584,173 shares during the period. Nuveen LLC bought a new position in Charles Schwab during the first quarter valued at about $440,699,000. Finally, Marshall Wace LLP increased its stake in Charles Schwab by 742.0% during the fourth quarter. Marshall Wace LLP now owns 4,181,202 shares of the financial services provider's stock valued at $309,451,000 after acquiring an additional 3,684,640 shares during the period. 84.38% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Piper Sandler lifted 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. JPMorgan Chase & Co. raised their target price on Charles Schwab from $92.00 to $95.00 and gave the stock an "overweight" rating in a research report on Monday, April 21st. The Goldman Sachs Group upgraded Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 target price for the company in a research report on Friday, April 25th. Barclays raised their target price on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Finally, Cowen restated a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have assigned a buy rating to the company's stock. Based on data from MarketBeat, Charles Schwab presently has an average rating of "Moderate Buy" and an average target price of $99.35.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Nigel J. Murtagh sold 24,096 shares of the company's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the completion of the sale, the insider owned 58,999 shares in the company, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Paula A. Sneed sold 8,647 shares of the company's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $88.06, for a total transaction of $761,454.82. Following the sale, the director owned 105,654 shares of the company's stock, valued at $9,303,891.24. The trade was a 7.57% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 308,016 shares of company stock worth $29,341,433. 6.30% of the stock is owned by company insiders.

Charles Schwab Trading Down 3.1%

NYSE:SCHW traded down $3.06 during trading hours on Wednesday, hitting $95.63. 12,455,199 shares of the stock were exchanged, compared to its average volume of 9,176,303. The company's 50 day moving average is $92.72 and its two-hundred day moving average is $84.69. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59. The company has a quick ratio of 0.53, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $173.59 billion, a P/E ratio of 25.71, a price-to-earnings-growth ratio of 0.95 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted 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. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%. The firm had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter in the prior year, the business earned $0.73 EPS. The business's revenue for the quarter was up 24.8% compared to the same quarter last year. On average, sell-side analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend

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

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

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.