The Charles Schwab Corporation $SCHW Shares Sold by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital reduced its stake in Charles Schwab by 38.2% in the fourth quarter, selling about 2.0 million shares and leaving it with 3.29 million shares valued at roughly $328.7 million.
• Charles Schwab reported better-than-expected quarterly results, with EPS of $1.43 versus $1.39 expected and revenue of $6.48 billion versus $6.39 billion expected. Revenue rose 15.8% from a year earlier, and the company also issued FY 2026 EPS guidance of 5.7 to 5.8.
• The company continues to attract strong institutional ownership and positive analyst attention, with 84.38% of shares held by institutions and the consensus rating at “Moderate Buy.” Recent analyst moves included higher price targets from Raymond James and Barclays.

Arrowstreet Capital Limited Partnership cut its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 38.2% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,289,633 shares of the financial services provider's stock after selling 2,033,759 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.19% of Charles Schwab worth $328,667,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in SCHW. Vanguard Group Inc. lifted its position in shares of Charles Schwab by 0.3% in the 3rd quarter. Vanguard Group Inc. now owns 151,585,214 shares of the financial services provider's stock valued at $14,471,840,000 after acquiring an additional 403,133 shares in the last quarter. State Street Corp lifted its position in Charles Schwab by 1.0% in the 3rd quarter. State Street Corp now owns 73,156,290 shares of the financial services provider's stock worth $6,984,231,000 after buying an additional 691,671 shares in the last quarter. Geode Capital Management LLC lifted its position in Charles Schwab by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider's stock worth $3,747,646,000 after buying an additional 98,242 shares in the last quarter. Franklin Resources Inc. lifted its position in Charles Schwab by 0.3% in the 4th quarter. Franklin Resources Inc. now owns 30,184,369 shares of the financial services provider's stock worth $3,015,720,000 after buying an additional 78,020 shares in the last quarter. Finally, Primecap Management Co. CA lifted its position 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 buying an additional 2,066,884 shares in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab Stock Performance

NYSE:SCHW opened at $91.04 on Monday. The Charles Schwab Corporation has a 1 year low of $83.96 and a 1 year high of $107.50. The firm's fifty day simple moving average is $91.05 and its 200 day simple moving average is $95.29. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.48. The firm has a market capitalization of $158.32 billion, a PE ratio of 18.06, a PEG ratio of 0.86 and a beta of 0.78.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.39 by $0.04. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The business had revenue of $6.48 billion for the quarter, compared to analyst estimates of $6.39 billion. During the same period last year, the business posted $1.04 EPS. Charles Schwab's revenue was up 15.8% compared to the same quarter last year. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. On average, sell-side analysts anticipate that The Charles Schwab Corporation will post 6.13 EPS for the current year.

Charles Schwab Announces Dividend

The company 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. The ex-dividend date was Friday, May 8th. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. Charles Schwab's dividend payout ratio (DPR) is presently 25.40%.

Insider Activity at Charles Schwab

In related news, insider Nigel J. Murtagh sold 41,297 shares of the firm's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total value of $4,088,403.00. Following the transaction, the insider directly owned 57,972 shares in the company, valued at approximately $5,739,228. This trade represents a 41.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available 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 firm's stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total transaction of $228,312.00. Following the completion of the transaction, the director owned 177,508 shares in the company, valued at $16,082,224.80. The trade was a 1.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 59,700 shares of company stock worth $5,889,131. 6.30% of the stock is owned by insiders.

Charles Schwab News Summary

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

• Positive Sentiment: Schwab reported monthly activity highlights for May, and the company said the month set records, reinforcing confidence in client growth and trading momentum. Schwab Reports Monthly Activity Highlights
• Positive Sentiment: Market commentary says the stock is also getting a lift from a broader rebound in financials and renewed investor focus on Schwab’s strong client and trading trends. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum
• Positive Sentiment: Recent analyst actions have been constructive, with firms raising earnings estimates and maintaining buy-style ratings, which supports the bullish setup for SCHW. Charles Schwab stock research page
• Neutral Sentiment: Schwab also announced the closure and liquidation of its Schwab Ariel Opportunities ETF, a fund-level action that appears unlikely to materially affect the parent company’s near-term stock performance. Schwab Asset Management Announces Closure and Liquidation of the Schwab Ariel Opportunities ETF (SAEF)
• Negative Sentiment: There is still some caution in the background from mixed institutional positioning and heavy insider selling over the past six months, which could limit upside if sentiment weakens. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Weiss Ratings upgraded shares of Charles Schwab from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 23rd. Jefferies Financial Group cut their target price on shares of Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a research report on Monday, April 6th. UBS Group cut their target price on shares of Charles Schwab from $125.00 to $119.00 and set a "buy" rating for the company in a research report on Wednesday, April 8th. Raymond James Financial increased their target price on shares of Charles Schwab from $126.00 to $137.00 and gave the stock an "outperform" rating in a research report on Friday, May 15th. Finally, Barclays increased their target price on shares of Charles Schwab from $117.00 to $127.00 and gave the stock an "overweight" rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Charles Schwab currently has a consensus rating of "Moderate Buy" and a consensus price target of $116.00.

Charles Schwab 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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