The Charles Schwab Corporation $SCHW Shares Purchased by RNC Capital Management LLC

Key Points

• RNC Capital Management LLC increased its stake in The Charles Schwab Corporation by 68.9% during the 1st quarter, now holding 39,895 shares valued at approximately $3.12 million.
• The company announced a $20 billion share buyback plan, indicating management's belief that the shares are undervalued.
• Charles Schwab reported a 24.8% increase in revenue year-over-year for the last quarter, with earnings per share at $1.14, exceeding analysts' expectations.

RNC Capital Management LLC increased its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 68.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 39,895 shares of the financial services provider's stock after acquiring an additional 16,279 shares during the period. RNC Capital Management LLC's holdings in Charles Schwab were worth $3,123,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of SCHW. Meiji Yasuda Life Insurance Co grew its holdings in Charles Schwab by 27.5% in the first quarter. Meiji Yasuda Life Insurance Co now owns 25,599 shares of the financial services provider's stock valued at $2,004,000 after purchasing an additional 5,522 shares during the period. Coppell Advisory Solutions LLC grew its holdings in Charles Schwab by 432.4% in the first quarter. Coppell Advisory Solutions LLC now owns 11,388 shares of the financial services provider's stock valued at $925,000 after purchasing an additional 9,249 shares during the period. United Services Automobile Association grew its holdings in Charles Schwab by 14.1% in the first quarter. United Services Automobile Association now owns 39,512 shares of the financial services provider's stock valued at $3,074,000 after purchasing an additional 4,869 shares during the period. Meiji Yasuda Asset Management Co Ltd. grew its holdings in Charles Schwab by 43.9% in the first quarter. Meiji Yasuda Asset Management Co Ltd. now owns 114,761 shares of the financial services provider's stock valued at $8,983,000 after purchasing an additional 35,002 shares during the period. Finally, Arete Wealth Advisors LLC grew its holdings in Charles Schwab by 24.0% in the first quarter. Arete Wealth Advisors LLC now owns 6,929 shares of the financial services provider's stock valued at $542,000 after purchasing an additional 1,340 shares during the period. 84.38% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Charles Schwab 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 value of $594,800.64. Following the sale, the insider owned 11,923 shares in the company, valued at $1,154,265.63. The trade was 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 available through the SEC website. Also, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the completion of the sale, the chairman owned 590,734 shares in the company, valued at $58,388,148.56. This represents a 22.74% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 298,214 shares of company stock valued at $29,022,580 in the last 90 days. 6.30% of the stock is owned by insiders.

Charles Schwab Stock Performance

Shares of Charles Schwab stock opened at $92.09 on Monday. The Charles Schwab Corporation has a one year low of $61.16 and a one year high of $99.59. The company has a market cap of $167.15 billion, a price-to-earnings ratio of 24.75, a PEG ratio of 0.91 and a beta of 0.96. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The business's 50 day moving average price is $95.20 and its 200 day moving average price is $86.38.

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

Charles Schwab announced that its board has approved a share buyback 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 buy up to 11.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Charles Schwab Announces Dividend

The business 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 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%.

Analyst Ratings Changes

Several analysts have commented on SCHW shares. Bank of America raised their price objective on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a report on Monday, July 21st. Barclays lifted their price target on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Wells Fargo & Company set a $102.00 price target on Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. Finally, Piper Sandler lifted their price target on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. Sixteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $99.60.

Charles Schwab Company 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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