Nissay Asset Management Corp Japan ADV Raises Stake in The Charles Schwab Corporation $SCHW

Key Points

• Nissay Asset Management Corp Japan ADV increased its stake in Charles Schwab shares by 8.8%, acquiring a total of 206,855 shares valued at approximately $16.19 million.
• The company has recently approved a $20 billion stock buyback plan, allowing it to repurchase up to 11.6% of its outstanding shares, signaling a belief in the stock's undervaluation.
• Charles Schwab's last earnings report showed a 24.8% increase in revenue year-over-year, with earnings per share beating estimates at $1.14.

Nissay Asset Management Corp Japan ADV raised its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 8.8% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 206,855 shares of the financial services provider's stock after acquiring an additional 16,663 shares during the quarter. Nissay Asset Management Corp Japan ADV's holdings in Charles Schwab were worth $16,193,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the business. Vanguard Group Inc. grew its holdings in Charles Schwab by 15.4% during the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after acquiring an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in 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 purchasing an additional 8,954,248 shares during the period. Northern Trust Corp lifted its position in Charles Schwab by 10.8% during the first quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock worth $1,365,227,000 after purchasing an additional 1,700,384 shares during the period. Alliancebernstein L.P. lifted its position in Charles Schwab by 16.0% during the first quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock worth $1,339,822,000 after purchasing an additional 2,355,309 shares during the period. Finally, Invesco Ltd. grew its holdings in shares of Charles Schwab by 5.0% during the 1st quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock valued at $1,220,107,000 after purchasing an additional 743,906 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Insider Buying and Selling

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction 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 $58,388,148.56. The trade was a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Nigel J. Murtagh sold 24,096 shares of the stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total value of $2,359,239.36. Following the sale, the insider directly owned 58,999 shares in the company, valued at $5,776,592.09. This trade represents a 29.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 298,214 shares of company stock valued at $29,022,580 over the last quarter. 6.30% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. Morgan Stanley increased their target price on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. JMP Securities increased their price objective on Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a research note on Monday, July 21st. William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Cowen reiterated a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. Finally, Barclays boosted their price target on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Sixteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Charles Schwab has a consensus rating of "Moderate Buy" and a consensus target price of $99.60.

Charles Schwab Stock Up 0.2%

Shares of NYSE SCHW traded up $0.21 on Tuesday, hitting $93.66. The company had a trading volume of 10,771,963 shares, compared to its average volume of 8,476,118. The business has a 50 day moving average of $95.24 and a two-hundred day moving average of $86.47. The Charles Schwab Corporation has a 12-month low of $61.16 and a 12-month high of $99.59. The firm has a market capitalization of $170.01 billion, a P/E ratio of 25.18, a PEG ratio of 0.92 and a beta of 0.96. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.04. The business had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The company's revenue was up 24.8% compared to the same quarter last year. During the same period last year, the company posted $0.73 EPS. As a group, equities research analysts forecast that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

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

Charles Schwab Announces Dividend

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

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.