The Charles Schwab Corporation $SCHW Shares Sold by Ninety One UK Ltd

Key Points

• Ninety One UK Ltd reduced its Charles Schwab position by 1.8%, selling 19,364 shares and retaining 1.03 million shares worth approximately $101 million. Institutional investors collectively own 84.38% of the company.
• Charles Schwab reported strong quarterly results, with adjusted EPS of $1.69 beating estimates and revenue rising 16.9% year over year to a record $7.17 billion. Core net new assets reached $190.4 billion, while client assets grew to $13.33 trillion.
• Despite the earnings beat and strong asset inflows, shares fell 3.4% to $93.48, partly because revenue slightly missed some forecasts and investors had already anticipated strong results. Analysts maintain a “Moderate Buy” consensus with an average price target of $119.

Ninety One UK Ltd decreased its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 1.8% during the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 1,033,167 shares of the financial services provider's stock after selling 19,364 shares during the period. Ninety One UK Ltd owned about 0.06% of Charles Schwab worth $100,982,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Compass Financial Management LLC purchased a new stake in shares of Charles Schwab in the second quarter valued at about $27,000. Scarborough Advisors LLC purchased a new position in shares of Charles Schwab during the 1st quarter worth approximately $29,000. Main Street Group LTD purchased a new position in shares of Charles Schwab during the 1st quarter worth approximately $33,000. J.Safra Asset Management Corp purchased a new position in shares of Charles Schwab during the 2nd quarter worth approximately $39,000. Finally, Washington Trust Advisors Inc. increased its stake in shares of Charles Schwab by 118.0% during the 2nd quarter. Washington Trust Advisors Inc. now owns 447 shares of the financial services provider's stock worth $41,000 after purchasing an additional 242 shares in the last quarter. Hedge funds and other institutional investors own 84.38% of the company's stock.

Key Charles Schwab News

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

• Positive Sentiment: Adjusted earnings were $1.69 per share, exceeding the $1.66 analyst consensus and rising from $1.31 a year earlier. Revenue increased 16.9% year over year to a record $7.17 billion, while net income climbed 23% to approximately $2.91 billion. Charles Schwab Q3 Earnings Beat Estimates
• Positive Sentiment: Core net new assets reached a record $190.4 billion, up 38% year over year. Client assets grew 15% to $13.33 trillion, and Schwab added 1.2 million brokerage accounts, bringing the total to 48.6 million. These figures indicate continued strength in asset gathering and customer acquisition. Schwab Delivers Record Net New Assets and Earnings
• Positive Sentiment: Results benefited from higher trading activity, stronger client assets, lending growth and increased net interest income, supporting optimism about Schwab’s operating momentum. Charles Schwab Beats Q3 Earnings Forecasts
• Neutral Sentiment: Revenue essentially met expectations but was reported as slightly below some Wall Street forecasts, with the reported surprise at approximately negative 0.26%. The small miss contrasts with the earnings beat and leaves investors assessing the durability of growth. Charles Schwab Posts Q3 Sales In Line With Estimates
• Negative Sentiment: The stock’s reaction suggests that strong results and record asset inflows were already anticipated, making the modest revenue shortfall more influential than the EPS beat. Analysts also trimmed valuation estimates, including a fair value reduction from $124.95 to $122.32, while Truist cut its price target. Charles Schwab Fair Value Trim

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the company. Morgan Stanley lifted their price objective on Charles Schwab from $136.00 to $141.00 and gave the stock an "overweight" rating in a research report on Friday, October 9th. TD Cowen increased their target price on Charles Schwab from $128.00 to $129.00 and gave the company a "buy" rating in a report on Monday. Bank of America raised their price target on Charles Schwab from $91.00 to $95.00 and gave the stock an "underperform" rating in a research report on Monday, October 5th. Weiss Ratings raised Charles Schwab from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, September 10th. Finally, UBS Group cut their price target on Charles Schwab from $128.00 to $113.00 and set a "buy" rating for the company in a report on Wednesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $119.00.

Charles Schwab Trading Down 3.4%

Shares of SCHW stock traded down $3.32 during trading hours on Thursday, hitting $93.48. 10,089,143 shares of the company were exchanged, compared to its average volume of 10,020,594. The firm has a market cap of $161.66 billion, a PE ratio of 17.00, a PEG ratio of 0.81 and a beta of 0.79. The Charles Schwab Corporation has a 1 year low of $83.96 and a 1 year high of $114.53. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52. The firm has a fifty day moving average of $105.07 and a 200 day moving average of $98.18.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Thursday, October 15th. The financial services provider reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.66 by $0.03. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. During the same period in the previous year, the firm earned $1.31 EPS. Charles Schwab's quarterly revenue was up 16.9% compared to the same quarter last year. Analysts expect that The Charles Schwab Corporation will post 6.46 earnings per share for the current year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were paid a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. Charles Schwab's dividend payout ratio (DPR) is currently 23.27%.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Nigel Murtagh sold 32,947 shares of Charles Schwab stock in a transaction on Monday, July 27th. The shares were sold at an average price of $104.01, for a total value of $3,426,817.47. Following the transaction, the insider owned 57,972 shares in the company, valued at $6,029,667.72. This trade represents a 36.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula Sneed sold 5,263 shares of the business's stock in a transaction 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 directly owned 91,711 shares of the company's stock, valued at $9,826,833.65. This represents a 5.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 645,582 shares of company stock valued at $69,553,935 over the last 90 days. 6.30% of the stock is currently owned by insiders.

Charles Schwab Profile

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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