The Charles Schwab Corporation $SCHW Shares Purchased by First Trust Advisors LP

Key Points

• First Trust Advisors LP increased its stake in Charles Schwab by 29% in the first quarter, buying 759,220 additional shares and bringing its total holdings to 3.38 million shares worth about $317.4 million.
• Charles Schwab delivered a strong Q2 earnings beat, posting $1.62 EPS on $7.07 billion in revenue, both above analyst expectations, with revenue up 20.9% year over year.
• The company also raised its FY2026 outlook to $28.1 billion-$28.3 billion in revenue, though some analysts and reports noted that rising expenses and the recent stock rally may limit near-term upside.

First Trust Advisors LP raised its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 29.0% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,377,185 shares of the financial services provider's stock after purchasing an additional 759,220 shares during the period. First Trust Advisors LP owned about 0.19% of Charles Schwab worth $317,388,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of the company. Norges Bank purchased a new position in shares of Charles Schwab during the fourth quarter valued at approximately $1,994,189,000. Bank of New York Mellon Corp grew its stake in Charles Schwab by 22.9% in the 1st quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider's stock worth $1,518,913,000 after acquiring an additional 3,009,884 shares during the period. Primecap Management Co. CA grew its stake in Charles Schwab by 9.7% in the 4th quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider's stock worth $2,325,512,000 after acquiring an additional 2,066,884 shares during the period. Focus Partners Wealth raised its holdings in Charles Schwab by 716.5% in the 4th quarter. Focus Partners Wealth now owns 2,101,463 shares of the financial services provider's stock valued at $209,948,000 after acquiring an additional 1,844,095 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. acquired a new position in Charles Schwab in the 1st quarter valued at $129,140,000. 84.38% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Jonathan S. Beatty sold 2,000 shares of the business's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $100.01, for a total transaction of $200,020.00. Following the completion of the sale, the insider owned 13,738 shares in the company, valued at approximately $1,373,937.38. The trade was a 12.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $90.60, for a total transaction of $228,312.00. Following the sale, the director directly owned 177,508 shares of the company's stock, valued at approximately $16,082,224.80. This trade represents a 1.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 6,520 shares of company stock valued at $622,392 over the last 90 days. 6.30% of the stock is currently owned by insiders.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: SCHW beat Q2 expectations, posting $1.62 EPS versus $1.53 expected and $7.07 billion in revenue versus $6.90 billion expected, with revenue up 20.9% year over year. Article Title
• Positive Sentiment: The quarter benefited from robust trading activity, strong net interest revenue, and record revenue, reinforcing the view that Schwab is gaining from active retail markets. Article Title
• Positive Sentiment: The company raised its FY2026 outlook, guiding revenue to $28.1 billion to $28.3 billion, above the Street’s $27.3 billion estimate, which supports the case for continued growth. Article Title
• Neutral Sentiment: Some commentary said the stock’s recent rally and stronger-than-expected earnings may have left less upside near term, suggesting investors are reassessing valuation after the results. Article Title
• Negative Sentiment: Despite the earnings beat, several reports noted that rising expenses disappointed some investors, which may be limiting enthusiasm for the stock. Article Title
• Negative Sentiment: BMO downgraded Charles Schwab to Market Perform after the recent stock rally, signaling that some analysts see less immediate upside despite the strong quarter. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on SCHW shares. Barclays decreased their price objective on Charles Schwab from $127.00 to $122.00 and set an "overweight" rating on the stock in a report on Thursday, July 9th. Wolfe Research reiterated an "outperform" rating and issued a $127.00 target price on shares of Charles Schwab in a research note on Tuesday. Raymond James Financial increased their target price on Charles Schwab from $126.00 to $137.00 and gave the stock an "outperform" rating in a research report on Friday, May 15th. Truist Financial decreased their price target on Charles Schwab from $122.00 to $120.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. Finally, Argus set a $108.00 price target on Charles Schwab in a report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and an average target price of $118.41.

Charles Schwab Stock Down 2.3%

Shares of NYSE SCHW opened at $100.19 on Wednesday. The Charles Schwab Corporation has a 52-week low of $83.96 and a 52-week high of $107.50. The firm has a fifty day moving average of $93.27 and a 200-day moving average of $95.34. The stock has a market capitalization of $174.25 billion, a PE ratio of 19.88, a P/E/G ratio of 0.85 and a beta of 0.77. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.48.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, topping analysts' consensus estimates of $1.56 by $0.06. The business had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The business's revenue for the quarter was up 20.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.14 EPS. On average, analysts anticipate that The Charles Schwab Corporation will post 6.27 EPS for the current year.

Charles Schwab Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were paid a dividend of $0.32 per share. The ex-dividend date was Friday, May 8th. This represents a $1.28 annualized dividend and a yield of 1.3%. Charles Schwab's dividend payout ratio is currently 25.40%.

Charles Schwab Company Profile

Charles Schwab Corporation NYSE: SCHW is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

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