Northwestern Mutual Wealth Management Co. Boosts Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Northwestern Mutual Wealth Management Co. has increased its stake in The Charles Schwab Corporation by 3.9%, acquiring an additional 5,132 shares, bringing its total ownership to 135,692 shares valued at approximately $10.6 million.
• Charles Schwab recently declared a quarterly dividend of $0.27 per share, reflecting a 1.1% dividend yield and a payout ratio of 29.03%.
• The company announced a $20 billion stock buyback plan, intending to repurchase up to 11.6% of its stock, signaling confidence in its valuation.

Northwestern Mutual Wealth Management Co. raised its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 3.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 135,692 shares of the financial services provider's stock after buying an additional 5,132 shares during the period. Northwestern Mutual Wealth Management Co.'s holdings in Charles Schwab were worth $10,622,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of SCHW. Vanguard Group Inc. boosted its position in shares of Charles Schwab by 15.4% during 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 buying an additional 19,817,022 shares during the period. Wellington Management Group LLP boosted its position in shares of Charles Schwab by 595.7% during the first 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 raised its stake in shares of Charles Schwab by 229.3% during the first quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock valued at $1,096,083,000 after acquiring an additional 9,749,728 shares in the last quarter. Price T Rowe Associates Inc. MD raised its stake 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 valued at $6,422,795,000 after acquiring an additional 8,954,248 shares in the last quarter. Finally, Nuveen LLC bought a new stake in shares of Charles Schwab during the first quarter valued at approximately $440,699,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Insider Activity

In other news, General Counsel Peter J. Morgan III sold 50,016 shares of the business's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total transaction of $4,851,552.00. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Nigel J. Murtagh sold 24,096 shares of the business's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total transaction 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 ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 298,299 shares of company stock valued at $29,005,931. 6.30% of the stock is owned by corporate insiders.

Charles Schwab Stock Down 1.2%

Shares of SCHW stock traded down $1.18 during trading hours on Friday, reaching $95.91. 8,829,399 shares of the company's stock were exchanged, compared to its average volume of 7,885,997. The stock's 50 day moving average is $94.58 and its 200-day moving average is $85.83. The company has a market cap of $174.10 billion, a price-to-earnings ratio of 25.78, a P/E/G ratio of 0.96 and a beta of 0.96. 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 Charles Schwab Corporation has a fifty-two week low of $61.16 and a fifty-two week high of $99.59.

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

Charles Schwab announced that its board has approved a stock repurchase 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 repurchase up to 11.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued 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 1.1%. Charles Schwab's payout ratio is 29.03%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on SCHW shares. Citigroup lifted their price target on shares of Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Piper Sandler lifted their price target on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Raymond James Financial reaffirmed an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research note on Friday, July 18th. William Blair downgraded shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. Finally, Barclays lifted their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. Sixteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $99.60.

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.