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

Key Points

• Rakuten Investment Management sharply increased its stake in Charles Schwab, boosting its holdings by 949.8% in the fourth quarter to 222,319 shares worth about $22.5 million.
• Analysts remain broadly positive on SCHW, with a consensus rating of “Moderate Buy” and a consensus price target of $116. Recent note changes included higher targets from Barclays and TD Cowen, while Jefferies and Truist slightly trimmed theirs.
• Charles Schwab reported better-than-expected quarterly earnings, posting $1.43 EPS on $6.48 billion in revenue, and also paid a quarterly dividend of $0.32 per share, yielding about 1.4% annually.

Rakuten Investment Management Inc. increased its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 949.8% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 222,319 shares of the financial services provider's stock after purchasing an additional 201,142 shares during the quarter. Rakuten Investment Management Inc.'s holdings in Charles Schwab were worth $22,523,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of SCHW. Brighton Jones LLC raised its holdings in Charles Schwab by 380.5% during the fourth quarter. Brighton Jones LLC now owns 24,240 shares of the financial services provider's stock worth $1,794,000 after purchasing an additional 19,195 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in Charles Schwab by 21.6% during the second quarter. Sivia Capital Partners LLC now owns 4,553 shares of the financial services provider's stock worth $415,000 after purchasing an additional 809 shares during the last quarter. United Bank raised its holdings in Charles Schwab by 7.1% during the second quarter. United Bank now owns 16,053 shares of the financial services provider's stock worth $1,465,000 after purchasing an additional 1,070 shares during the last quarter. Nebula Research & Development LLC acquired a new position in Charles Schwab during the second quarter worth $552,000. Finally, Main Street Financial Solutions LLC raised its holdings in Charles Schwab by 4.7% during the second quarter. Main Street Financial Solutions LLC now owns 6,828 shares of the financial services provider's stock worth $623,000 after purchasing an additional 305 shares during the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on SCHW. Jefferies Financial Group cut their price target on Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a report on Monday, April 6th. Barclays boosted their price target on Charles Schwab from $117.00 to $127.00 and gave the stock an "overweight" rating in a report on Friday, May 15th. Keefe, Bruyette & Woods began coverage on Charles Schwab in a report on Wednesday, April 8th. They issued an "outperform" rating and a $110.00 price target for the company. TD Cowen boosted their price target on Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Finally, Truist Financial cut their price target on Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a report on Wednesday, April 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $116.00.

Charles Schwab Stock Performance

NYSE SCHW opened at $90.94 on Tuesday. The stock has a market cap of $158.16 billion, a price-to-earnings ratio of 18.04, a price-to-earnings-growth ratio of 0.86 and a beta of 0.78. The business has a fifty day moving average of $90.99 and a 200-day moving average of $95.29. The Charles Schwab Corporation has a fifty-two week low of $83.96 and a fifty-two week high of $107.50. 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 earnings results on Thursday, April 16th. The financial services provider reported $1.43 EPS for the quarter, beating the consensus estimate of $1.39 by $0.04. The firm had revenue of $6.48 billion during the quarter, compared to analyst estimates of $6.39 billion. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The business's quarterly revenue was up 15.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.04 earnings per share. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. As a group, analysts predict that The Charles Schwab Corporation will post 6.13 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were paid a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 1.4%. The ex-dividend date was Friday, May 8th. Charles Schwab's dividend payout ratio is presently 25.40%.

Insider Activity at Charles Schwab

In related news, insider Nigel J. Murtagh sold 41,297 shares of the company's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $99.00, for a total value of $4,088,403.00. Following the completion of the transaction, the insider directly owned 57,972 shares in the company, valued at approximately $5,739,228. This represents a 41.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the company's stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total value of $228,312.00. Following the completion of the transaction, the director owned 177,508 shares of the company's stock, valued at $16,082,224.80. The trade was a 1.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 59,700 shares of company stock worth $5,889,131. 6.30% of the stock is currently owned by insiders.

About Charles Schwab

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.