The Charles Schwab Corporation $SCHW Shares Acquired by United Services Automobile Association

Key Points

• United Services Automobile Association has increased its stake in Charles Schwab by 14.1%, now owning 39,512 shares valued at $3,074,000.
• Multiple analysts have upgraded Charles Schwab's stock ratings, raising the price target significantly, with the consensus now at $99.60 and a "Moderate Buy" rating.
• Charles Schwab recently announced a $20 billion share buyback plan as part of its strategy to repurchase outstanding shares, typically indicative of perceived undervaluation by the management.

United Services Automobile Association lifted its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 14.1% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 39,512 shares of the financial services provider's stock after buying an additional 4,869 shares during the quarter. United Services Automobile Association's holdings in Charles Schwab were worth $3,074,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in SCHW. Sheaff Brock Investment Advisors LLC increased its position in Charles Schwab by 1.6% during the first quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock worth $625,000 after buying an additional 129 shares during the period. HM Payson & Co. lifted its position in shares of Charles Schwab by 0.7% during the 1st quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock valued at $1,509,000 after acquiring an additional 130 shares during the period. Cornerstone Wealth Management LLC raised its position in Charles Schwab by 2.1% during the first quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock worth $513,000 after acquiring an additional 132 shares during the last quarter. Journey Strategic Wealth LLC raised its holdings in shares of Charles Schwab by 3.1% in the first quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock worth $351,000 after acquiring an additional 135 shares during the last quarter. Finally, Meridian Wealth Management LLC boosted its stake in shares of Charles Schwab by 2.2% during the 1st quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock worth $485,000 after purchasing an additional 136 shares during the last quarter. Hedge funds and other institutional investors own 84.38% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have commented on SCHW. TD Securities lifted their price target on Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a report on Tuesday, May 20th. Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and raised their price objective for the stock from $65.00 to $82.00 in a report on Monday, June 9th. Piper Sandler lifted their price objective on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Finally, Citigroup increased their target price on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Sixteen equities research 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's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $99.60.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Paul V. Woolway sold 3,205 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $95.20, for a total value of $305,116.00. Following the transaction, the insider owned 37,983 shares in the company, valued at $3,615,981.60. The trade was a 7.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Jonathan S. Beatty sold 6,144 shares of the firm's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $96.81, for a total transaction of $594,800.64. Following the transaction, the insider owned 11,923 shares in the company, valued at $1,154,265.63. This represents a 34.01% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 298,214 shares of company stock valued at $29,022,580. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Stock Performance

Shares of SCHW opened at $92.09 on Monday. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The Charles Schwab Corporation has a 12-month low of $61.16 and a 12-month high of $99.59. The business's fifty day moving average price is $95.20 and its 200 day moving average price is $86.38. The stock has a market capitalization of $167.15 billion, a PE ratio of 24.75, a price-to-earnings-growth 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $0.04. The company had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The company's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.73 earnings per share. Equities research analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were given a dividend of $0.27 per share. 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 payout ratio is 29.03%.

Charles Schwab announced that its board has authorized a share buyback plan on Thursday, July 24th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its stock is 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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