The Charles Schwab Corporation $SCHW Shares Sold by Smith Group Asset Management LLC

Key Points

• Smith Group Asset Management reduced its Charles Schwab stake by 36.7% in the third quarter, selling 153,803 shares and retaining 265,628 shares valued at approximately $26.0 million. Institutional investors collectively own 84.38% of SCHW.
• Charles Schwab reported quarterly EPS of $1.69, ahead of the $1.66 consensus, while revenue reached $7.17 billion and rose 16.9% year over year. The company also declared a $0.32 quarterly dividend, representing a 1.4% yield.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $119.91, although recent insider selling and elevated put-option activity indicate some near-term caution.

Smith Group Asset Management LLC cut its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 36.7% in the third quarter, according to the company in its most recent disclosure with the SEC. The fund owned 265,628 shares of the financial services provider's stock after selling 153,803 shares during the quarter. Smith Group Asset Management LLC's holdings in Charles Schwab were worth $25,962,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in SCHW. William Mack & Associates Inc. purchased a new stake in Charles Schwab during the 3rd quarter worth approximately $55,000. Victory Financial Group LLC acquired a new position in Charles Schwab during the 3rd quarter valued at approximately $509,000. Generali Asset Management SPA SGR increased its stake in Charles Schwab by 2.1% during the 3rd quarter. Generali Asset Management SPA SGR now owns 112,664 shares of the financial services provider's stock valued at $11,012,000 after purchasing an additional 2,338 shares in the last quarter. Asset Management One Co. Ltd. raised its holdings in shares of Charles Schwab by 4.8% in the third quarter. Asset Management One Co. Ltd. now owns 741,516 shares of the financial services provider's stock worth $72,476,000 after buying an additional 33,790 shares during the last quarter. Finally, Latitude Advisors LLC purchased a new position in shares of Charles Schwab in the third quarter worth $172,000. Institutional investors and hedge funds 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: Schwab Advisor Services announced new AI capabilities inside Schwab Advisor Center and through third-party applications used by registered investment advisors (RIAs). The initiative could improve advisor productivity, deepen Schwab’s platform relationships and support long-term asset growth. Schwab Advisor Services Expands AI Inside Schwab Advisor Center and Across Third-Party Solutions
• Positive Sentiment: The company is investing in advisor technology through an investment in AI startup Nevis and a previously announced collaboration with Anthropic. Schwab is also offering RIAs a $4,800 credit toward Claude for Financial Advisors’ enterprise plan, reducing adoption costs for smaller firms and potentially accelerating usage. Charles Schwab Invests in AI Startup Nevis Schwab Offers Credit to RIAs to Prompt Use of Claude AI Enterprise Plan
• Neutral Sentiment: CEO Rick Wurster reaffirmed Schwab’s commitment to supporting approximately 11,000 smaller RIA clients with less than $100 million in assets, contrasting with Fidelity’s decision to exit a similar segment. The stance may help Schwab attract advisors and retain client assets, although the financial benefit will depend on long-term growth and profitability. Schwab CEO Wurster Commits to Small RIAs
• Negative Sentiment: Traders purchased 26,195 SCHW put options, about 24% above average put volume. The activity signals increased near-term hedging or bearish speculation and may be contributing to today’s weaker sentiment.
• Negative Sentiment: A reported 13.77% reduction in a price target for Schwab preferred stock adds a negative signal for the broader Schwab complex, though it does not directly represent a valuation change for the company’s common shares. Charles Schwab Preferred Stock Price Target Decreased

Charles Schwab Stock Performance

SCHW opened at $88.84 on Thursday. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.52. The Charles Schwab Corporation has a 12-month low of $83.96 and a 12-month high of $114.53. The firm has a 50 day moving average of $101.38 and a two-hundred day moving average of $97.79. The firm has a market capitalization of $153.63 billion, a PE ratio of 15.16, a P/E/G ratio of 0.81 and a beta of 0.79.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Thursday, October 15th. The financial services provider reported $1.69 EPS for the quarter, beating the consensus estimate of $1.66 by $0.03. The business had revenue of $7.17 billion for the quarter, compared to the consensus estimate of $7.18 billion. Charles Schwab had a net margin of 39.33% and a return on equity of 25.79%. The business's revenue for the quarter was up 16.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.31 EPS. On average, analysts anticipate that The Charles Schwab Corporation will post 6.41 EPS for the current year.

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, November 13th. Charles Schwab's dividend payout ratio is presently 21.84%.

Analysts Set New Price Targets

Several equities research analysts have recently commented on SCHW shares. Citigroup reiterated a "market outperform" rating on shares of Charles Schwab in a research note on Friday, October 16th. Piper Sandler cut their target price on Charles Schwab from $118.00 to $100.00 and set a "neutral" rating on the stock in a research report on Friday, October 2nd. Wolfe Research reissued an "outperform" rating and issued a $127.00 target price (up from $123.00) on shares of Charles Schwab in a research report on Tuesday, July 21st. Evercore set a $98.00 target price on Charles Schwab in a research note on Wednesday. Finally, Argus lifted their price target on Charles Schwab from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Thursday, July 23rd. Eighteen equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $119.91.

Insider Buying and Selling

In other Charles Schwab news, Chairman Walter Bettinger sold 74,388 shares of the stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $110.91, for a total transaction of $8,250,373.08. Following the sale, the chairman directly owned 610,360 shares of the company's stock, valued at approximately $67,695,027.60. This trade represents a 10.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paula Sneed sold 5,263 shares of Charles Schwab stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $107.15, for a total value of $563,930.45. Following the transaction, the director owned 91,711 shares of the company's stock, valued at $9,826,833.65. The trade was a 5.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 285,734 shares of company stock valued at $32,073,309 in the last 90 days. 6.30% of the stock is currently owned by insiders.

Charles Schwab Company Profile

The Charles Schwab Corporation NYSE: SCHW is a financial services company that provides investment, wealth management, banking and related services to individual investors, financial professionals and institutional clients. Through its brokerage business, Schwab offers trading and custody services for stocks, exchange-traded funds, mutual funds, options, fixed-income securities and other investments, along with retirement accounts and investment research tools.

The company also provides advisory and wealth management services, including managed portfolios, financial planning and support for registered investment advisors.

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