The Charles Schwab Corporation $SCHW Shares Acquired by Canada Pension Plan Investment Board

Key Points

• The **Canada Pension Plan Investment Board** increased its stake in The Charles Schwab Corporation by **5.9%**, owning approximately **0.16%** of the company, valued at **$232 million** as of the last quarter.
• **Vanguard Group Inc.** and **Wellington Management Group LLP** significantly boosted their holdings in Charles Schwab by **15.4%** and **595.7%**, respectively, highlighting strong institutional interest in the stock.
• Charles Schwab's stock recently received **target price upgrades** from various analysts, with Piper Sandler raising it from **$80 to $92**, and TD Securities increasing it to **$113** while maintaining a "buy" rating.

Canada Pension Plan Investment Board grew its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 5.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,964,077 shares of the financial services provider's stock after purchasing an additional 165,485 shares during the period. Canada Pension Plan Investment Board owned about 0.16% of Charles Schwab worth $232,028,000 at the end of the most recent quarter.

A number of other institutional investors have also recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in shares of Charles Schwab by 15.4% in 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 purchasing an additional 19,817,022 shares during the last quarter. Wellington Management Group LLP raised its holdings in Charles Schwab by 595.7% in the 1st quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock valued at $1,212,461,000 after buying an additional 13,262,309 shares during the period. Primecap Management Co. CA lifted its holdings in shares of Charles Schwab by 229.3% in the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock worth $1,096,083,000 after acquiring an additional 9,749,728 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of Charles Schwab by 12.3% during the first quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock worth $6,422,795,000 after buying an additional 8,954,248 shares during the period. Finally, Nuveen LLC acquired a new position in Charles Schwab in the 1st quarter valued at about $440,699,000. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms recently commented on SCHW. Piper Sandler boosted their target price on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. TD Securities upped their target price on Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a research report on Tuesday, May 20th. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and boosted their price target for the company from $65.00 to $82.00 in a research report on Monday, June 9th. JMP Securities upped their price objective on shares of Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research report on Monday, July 21st. Finally, Truist Financial raised their target price on Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a report on Friday, August 15th. Sixteen analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $99.60.

Insider Buying and Selling at Charles Schwab

In other 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 value of $2,359,239.36. Following the transaction, the insider directly owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Paul V. Woolway sold 10,129 shares of the firm's stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total value of $911,711.29. Following the sale, the insider directly owned 39,154 shares of the company's stock, valued at $3,524,251.54. This trade represents a 20.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 238,843 shares of company stock worth $23,239,273. 6.30% of the stock is currently owned by company insiders.

Charles Schwab Stock Up 0.3%

SCHW stock opened at $97.12 on Friday. The Charles Schwab Corporation has a 52 week low of $61.16 and a 52 week high of $99.59. 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 company has a market capitalization of $176.30 billion, a price-to-earnings ratio of 26.11, a price-to-earnings-growth ratio of 0.95 and a beta of 0.96. The firm's 50-day moving average is $94.45 and its two-hundred day moving average is $85.74.

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

Charles Schwab Dividend Announcement

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

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

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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