The Charles Schwab Corporation $SCHW Shares Purchased by Diversified Management Inc.

Key Points

• Diversified Management Inc. increased its Charles Schwab position by 404.1% in the third quarter, acquiring 38,541 additional shares for a total of 48,078 shares valued at approximately $4.7 million. Institutional investors collectively own 84.38% of SCHW.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $118.05. Schwab recently exceeded quarterly earnings and revenue estimates, reporting $1.62 in EPS and $7.07 billion in revenue.
• Charles Schwab pays a quarterly dividend of $0.32 per share, equivalent to a 1.3% yield and a 23.27% payout ratio. However, insiders have sold 645,582 shares worth roughly $69.6 million over the past 90 days.

Diversified Management Inc. raised its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 404.1% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 48,078 shares of the financial services provider's stock after purchasing an additional 38,541 shares during the quarter. Charles Schwab accounts for approximately 0.8% of Diversified Management Inc.'s holdings, making the stock its 28th largest holding. Diversified Management Inc.'s holdings in Charles Schwab were worth $4,699,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of the company. Acropolis Investment Management LLC lifted its position in shares of Charles Schwab by 6.6% in the third quarter. Acropolis Investment Management LLC now owns 4,599 shares of the financial services provider's stock worth $450,000 after purchasing an additional 286 shares in the last quarter. GAMMA Investing LLC grew its position in Charles Schwab by 16.4% in the third quarter. GAMMA Investing LLC now owns 64,965 shares of the financial services provider's stock valued at $6,350,000 after purchasing an additional 9,138 shares in the last quarter. Hamilton Capital LLC bought a new stake in Charles Schwab during the 3rd quarter worth about $229,000. Sapient Capital LLC acquired a new position in shares of Charles Schwab during the 3rd quarter worth about $200,000. Finally, Artemis Investment Management LLP acquired a new position in shares of Charles Schwab during the 3rd quarter worth about $13,066,000. 84.38% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Citigroup reissued a "market outperform" rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Morgan Stanley increased their price target on Charles Schwab from $133.00 to $136.00 and gave the company an "overweight" rating in a research note on Monday, July 27th. Piper Sandler cut their target price on shares of Charles Schwab from $118.00 to $100.00 and set a "neutral" rating for the company in a research note on Friday, October 2nd. Barclays reduced their target price on shares of Charles Schwab from $125.00 to $118.00 and set an "overweight" rating for the company in a report on Wednesday. Finally, Wolfe Research restated an "outperform" rating and set a $127.00 price objective on shares of Charles Schwab in a research report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Charles Schwab presently has an average rating of "Moderate Buy" and a consensus target price of $118.05.

Charles Schwab Stock Performance

NYSE SCHW opened at $96.85 on Friday. The firm has a 50-day moving average price of $105.85 and a two-hundred day moving average price of $98.13. The Charles Schwab Corporation has a 12-month low of $83.96 and a 12-month high of $114.53. The company has a market capitalization of $167.48 billion, a P/E ratio of 17.61, a P/E/G ratio of 0.81 and a beta of 0.79. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.06. The business had revenue of $7.07 billion during the quarter, compared to analysts' expectations of $6.90 billion. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%.The firm's revenue for the quarter was up 20.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.14 earnings per share. Analysts anticipate that The Charles Schwab Corporation will post 6.46 earnings per share for the current year.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, August 14th. Charles Schwab's dividend payout ratio is 23.27%.

Charles Schwab News Summary

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab agreed to sell Forge Trust and its parent to Alto, allowing Alto to combine Forge’s alternative-asset custody capabilities with its self-directed retirement-account technology. The transaction could streamline Schwab’s private-market strategy while preserving broader exposure through its relationship with Forge Global. Charles Schwab Parts With Forge Trust in Private Markets Retirement Push
• Positive Sentiment: Schwab commentary and survey data point to growing demand for cryptocurrency investing: 64% of surveyed millennial crypto owners reportedly plan to increase their purchases. Rising crypto participation could support trading activity, client engagement and future asset growth. Charles Schwab Survey on Millennials and Crypto
• Positive Sentiment: Schwab is highlighting international equities and broader market participation rather than concentrated exposure to a handful of U.S. winners. That positioning may encourage diversified investing and increase demand for Schwab’s brokerage and investment products. Schwab Flags the Risk in Skipping Foreign Stocks
• Neutral Sentiment: Investors are preparing for Schwab’s upcoming earnings report. Analysts expect earnings growth, but the company reportedly lacks the combination of estimate revisions and other indicators typically associated with a likely earnings beat, making the release a key near-term catalyst. Charles Schwab Earnings Expected to Grow
• Neutral Sentiment: Articles reviewing Schwab’s fees, certificates of deposit, safety and investing tools provide consumer visibility but do not introduce a material change to the company’s fundamentals. Charles Schwab Review

Insider Buying and Selling

In related news, Director Paula A. Sneed sold 5,263 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $107.15, for a total transaction of $563,930.45. Following the sale, the director owned 91,711 shares in the company, valued at approximately $9,826,833.65. This trade represents a 5.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, General Counsel Peter J. Morgan III sold 6,952 shares of the company's stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $102.03, for a total value of $709,312.56. The disclosure for this sale is available in the SEC filing. Insiders have sold 645,582 shares of company stock valued at $69,553,935 in the last ninety days. Insiders own 6.30% of the company's stock.

About Charles Schwab

Charles Schwab Corporation NYSE: SCHW is a financial services company that provides brokerage, investment, banking and wealth management services to individual investors, employers, institutions and independent investment advisors. Its offerings include online and mobile trading, securities brokerage, retirement accounts, financial planning, portfolio management, banking products, research and access to mutual funds and exchange-traded funds.

The company operates through businesses including Schwab Brokerage, Schwab Wealth Advisory, Schwab Asset Management and Charles Schwab Bank.

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