The Charles Schwab Corporation $SCHW is Alpha DNA Investment Management LLC's 6th Largest Position

Key Points

• Alpha DNA Investment Management LLC has reduced its holdings in The Charles Schwab Corporation by 91.6% in the first quarter, making Schwab its 6th largest position, now valued at $266,000.
• Charles Schwab recently announced a $20 billion share buyback program, indicating the board’s belief that the stock is undervalued.
• The company reported a 24.8% increase in revenue year-over-year, with recent quarterly earnings exceeding analyst expectations at $1.14 EPS.

Alpha DNA Investment Management LLC lessened its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 91.6% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 3,397 shares of the financial services provider's stock after selling 36,877 shares during the period. Charles Schwab accounts for approximately 3.5% of Alpha DNA Investment Management LLC's holdings, making the stock its 6th biggest position. Alpha DNA Investment Management LLC's holdings in Charles Schwab were worth $266,000 at the end of the most recent quarter.

Other institutional investors have also bought and sold shares of the company. Bain Capital Public Equity Management II LLC purchased a new stake in Charles Schwab in the 1st quarter worth $79,605,000. Independent Advisor Alliance increased its stake in Charles Schwab by 13.8% in the 1st quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider's stock worth $3,061,000 after buying an additional 4,754 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH increased its stake in Charles Schwab by 6.2% in the 1st quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock worth $92,493,000 after buying an additional 68,858 shares in the last quarter. World Investment Advisors increased its stake in Charles Schwab by 7.6% in the 1st quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock worth $12,760,000 after buying an additional 11,505 shares in the last quarter. Finally, State of Alaska Department of Revenue increased its stake in Charles Schwab by 17.2% in the 1st quarter. State of Alaska Department of Revenue now owns 199,687 shares of the financial services provider's stock worth $15,631,000 after buying an additional 29,255 shares in the last quarter. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab Stock Up 1.6%

Shares of NYSE:SCHW opened at $93.50 on Tuesday. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The Charles Schwab Corporation has a 12 month low of $61.16 and a 12 month high of $99.59. The company has a 50-day moving average price of $95.24 and a 200 day moving average price of $86.47. The company has a market cap of $169.72 billion, a price-to-earnings ratio of 25.13, a PEG ratio of 0.91 and a beta of 0.96.

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 analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The firm had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter last year, the firm earned $0.73 EPS. The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. As a group, equities research analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

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

Charles Schwab Dividend Announcement

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

Insider Transactions at Charles Schwab

In related news, insider Jonathan S. Beatty sold 6,144 shares of the stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the completion of the transaction, the insider owned 11,923 shares of the company's stock, valued at approximately $1,154,265.63. This trade represents a 34.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total transaction of $4,851,552.00. The disclosure for this sale can be found here. Insiders have sold 298,214 shares of company stock worth $29,022,580 in the last quarter. Company insiders own 6.30% of the company's stock.

Analyst Ratings Changes

A number of brokerages have issued reports on SCHW. Barclays increased their price target on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Piper Sandler increased their price objective on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Wells Fargo & Company set a $102.00 price objective on shares of Charles Schwab and gave the company an "overweight" rating in a report on Friday, July 18th. JMP Securities increased their price objective on shares of Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a report on Monday, July 21st. Finally, William Blair downgraded shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Sixteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $99.60.

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.

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