The Charles Schwab Corporation $SCHW Shares Bought by Advisors Capital Management LLC

Key Points

• Advisors Capital Management LLC increased its holdings in Charles Schwab by 15.9%, owning 134,787 shares valued at $10.55 million as of the latest SEC filing.
• Multiple institutional investors showed strong interest by significantly growing their stakes in Charles Schwab, with Acadian Asset Management increasing by an impressive 1,674.4% in the first quarter.
• Charles Schwab's board authorized a $20 billion share repurchase program, indicating confidence in the stock's undervaluation, along with a quarterly dividend of $0.27 per share.

Advisors Capital Management LLC grew its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 15.9% during the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 134,787 shares of the financial services provider's stock after purchasing an additional 18,451 shares during the quarter. Advisors Capital Management LLC's holdings in Charles Schwab were worth $10,551,000 as of its most recent filing with the SEC.

Other hedge funds also recently modified their holdings of the company. WBI Investments LLC grew its holdings in shares of Charles Schwab by 19.1% in the 1st quarter. WBI Investments LLC now owns 5,412 shares of the financial services provider's stock worth $424,000 after acquiring an additional 868 shares during the last quarter. Acadian Asset Management LLC grew its holdings in shares of Charles Schwab by 1,674.4% in the 1st quarter. Acadian Asset Management LLC now owns 16,200 shares of the financial services provider's stock worth $1,265,000 after acquiring an additional 15,287 shares during the last quarter. IFM Investors Pty Ltd grew its holdings in shares of Charles Schwab by 7.7% in the 1st quarter. IFM Investors Pty Ltd now owns 318,346 shares of the financial services provider's stock worth $24,920,000 after acquiring an additional 22,652 shares during the last quarter. Intech Investment Management LLC grew its holdings in shares of Charles Schwab by 77.4% in the 1st quarter. Intech Investment Management LLC now owns 165,408 shares of the financial services provider's stock worth $12,948,000 after acquiring an additional 72,167 shares during the last quarter. Finally, Focus Partners Wealth grew its holdings in shares of Charles Schwab by 75.8% in the 1st quarter. Focus Partners Wealth now owns 201,397 shares of the financial services provider's stock worth $15,766,000 after acquiring an additional 86,820 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 completion of the sale, the insider directly owned 37,983 shares of the company's stock, valued at $3,615,981.60. This represents a 7.78% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 298,214 shares of company stock valued at $29,022,580. 6.30% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of brokerages recently issued reports on SCHW. Piper Sandler lifted their target price on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a report on Tuesday, July 15th. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $65.00 to $82.00 in a report on Monday, June 9th. Barclays raised their target price on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Keefe, Bruyette & Woods raised their target price on Charles Schwab from $102.00 to $108.00 and gave the stock an "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 stock a "buy" rating in a research report on Friday, August 15th. Sixteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $99.60.

Charles Schwab Price Performance

SCHW opened at $93.90 on Friday. The stock has a market cap of $170.45 billion, a price-to-earnings ratio of 25.24, a PEG ratio of 0.91 and a beta of 0.96. The Charles Schwab Corporation has a 1 year low of $61.16 and a 1 year 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 stock has a fifty day moving average price of $95.36 and a 200 day moving average price of $86.66.

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 (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. The firm had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business's revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter last year, the firm earned $0.73 earnings per share. Analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

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.

Charles Schwab Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors 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 yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) 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.

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