The Charles Schwab Corporation $SCHW Shares Acquired by Boston Partners

Key Points

• Boston Partners increased its stake in Charles Schwab by 6.0% in the fourth quarter, buying 264,415 additional shares and bringing its position to 4.66 million shares valued at about $465.7 million.
• Charles Schwab reported better-than-expected quarterly results, with EPS of $1.43 versus $1.39 expected and revenue of $6.48 billion versus $6.39 billion expected, while revenue rose 15.8% year over year.
• Institutional ownership remains high, with hedge funds and other institutions controlling 84.38% of the stock, even as some insiders recently sold shares and analysts maintain a generally positive outlook.

Boston Partners boosted its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 6.0% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 4,658,266 shares of the financial services provider's stock after acquiring an additional 264,415 shares during the quarter. Boston Partners owned 0.26% of Charles Schwab worth $465,723,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Souders Financial Advisors boosted its stake in Charles Schwab by 2.3% in the fourth quarter. Souders Financial Advisors now owns 4,341 shares of the financial services provider's stock valued at $434,000 after acquiring an additional 98 shares during the period. Lantz Financial LLC grew its position in Charles Schwab by 3.1% during the 4th quarter. Lantz Financial LLC now owns 3,243 shares of the financial services provider's stock worth $324,000 after purchasing an additional 99 shares in the last quarter. Roberts Wealth Advisors LLC grew its holdings in shares of Charles Schwab by 0.5% during the 4th quarter. Roberts Wealth Advisors LLC now owns 22,961 shares of the financial services provider's stock valued at $2,294,000 after acquiring an additional 105 shares in the last quarter. Essex Financial Services Inc. grew its holdings in shares of Charles Schwab by 0.8% during the 4th quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider's stock valued at $1,282,000 after acquiring an additional 105 shares in the last quarter. Finally, JFS Wealth Advisors LLC increased its position in Charles Schwab by 0.4% during the fourth quarter. JFS Wealth Advisors LLC now owns 24,626 shares of the financial services provider's stock worth $2,460,000 after buying an additional 107 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Price Performance

SCHW stock opened at $91.04 on Friday. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62. The Charles Schwab Corporation has a 1 year low of $83.96 and a 1 year high of $107.50. The company has a 50 day simple moving average of $91.05 and a 200 day simple moving average of $95.25. The stock has a market cap of $158.32 billion, a price-to-earnings ratio of 18.06, a P/E/G ratio of 0.84 and a beta of 0.77.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Thursday, April 16th. The financial services provider reported $1.43 EPS for the quarter, beating analysts' consensus estimates of $1.39 by $0.04. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The company had revenue of $6.48 billion for the quarter, compared to analyst estimates of $6.39 billion. During the same period in the prior year, the firm posted $1.04 EPS. The company's quarterly revenue was up 15.8% on a year-over-year basis. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Research analysts anticipate that The Charles Schwab Corporation will post 6.13 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Friday, May 8th were paid a $0.32 dividend. The ex-dividend date was Friday, May 8th. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. Charles Schwab's dividend payout ratio (DPR) is presently 25.40%.

Charles Schwab News Summary

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab reported monthly activity highlights for May, and the company said the month set records, reinforcing confidence in client growth and trading momentum. Schwab Reports Monthly Activity Highlights
• Positive Sentiment: Market commentary says the stock is also getting a lift from a broader rebound in financials and renewed investor focus on Schwab’s strong client and trading trends. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum
• Positive Sentiment: Recent analyst actions have been constructive, with firms raising earnings estimates and maintaining buy-style ratings, which supports the bullish setup for SCHW. Charles Schwab stock research page
• Neutral Sentiment: Schwab also announced the closure and liquidation of its Schwab Ariel Opportunities ETF, a fund-level action that appears unlikely to materially affect the parent company’s near-term stock performance. Schwab Asset Management Announces Closure and Liquidation of the Schwab Ariel Opportunities ETF (SAEF)
• Negative Sentiment: There is still some caution in the background from mixed institutional positioning and heavy insider selling over the past six months, which could limit upside if sentiment weakens. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Truist Financial cut their price objective on shares of Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Morgan Stanley cut their target price on shares of Charles Schwab from $135.00 to $125.00 and set an "overweight" rating for the company in a research note on Friday, April 17th. Weiss Ratings raised shares of Charles Schwab from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 23rd. Piper Sandler raised their price objective on shares of Charles Schwab from $103.00 to $105.00 and gave the company a "neutral" rating in a research note on Friday, May 15th. Finally, UBS Group cut their target price on shares of Charles Schwab from $125.00 to $119.00 and set a "buy" rating on the stock in a report on Wednesday, April 8th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $116.00.

Insider Activity at Charles Schwab

In related news, Director Frank C. Herringer sold 2,520 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total transaction of $228,312.00. Following the completion of the transaction, the director owned 177,508 shares of the company's stock, valued at approximately $16,082,224.80. The trade was a 1.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Nigel J. Murtagh sold 41,297 shares of the business's stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the transaction, the insider directly owned 57,972 shares of the company's stock, valued at approximately $5,739,228. This represents a 41.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 59,700 shares of company stock valued at $5,889,131. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Company Profile

Charles Schwab Corporation NYSE: SCHW is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

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