The Charles Schwab Corporation $SCHW Stake Boosted by Perpetual Ltd

Key Points

• Perpetual Ltd increased its Charles Schwab stake by 22.5% in the third quarter, adding 102,517 shares to reach 558,236 shares valued at approximately $54.6 million. Institutional investors now own 84.38% of the company.
• Charles Schwab reported quarterly earnings of $1.62 per share, beating estimates of $1.56, while revenue rose 20.9% year over year to $7.07 billion. Analysts expect full-year earnings of $6.46 per share.
• The company maintains a quarterly dividend of $0.32 per share, equal to a 1.3% yield, but insiders have sold roughly 645,582 shares worth $69.6 million over the past 90 days. Analysts’ average rating remains “Moderate Buy”, with an average price target of $118.75.

Perpetual Ltd increased its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 22.5% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 558,236 shares of the financial services provider's stock after buying an additional 102,517 shares during the quarter. Perpetual Ltd's holdings in Charles Schwab were worth $54,562,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in the business. Sheets Smith Wealth Management increased its holdings in Charles Schwab by 0.7% during the first quarter. Sheets Smith Wealth Management now owns 14,521 shares of the financial services provider's stock valued at $1,365,000 after buying an additional 108 shares during the last quarter. Peoples Bank KS raised its position in Charles Schwab by 2.7% in the second quarter. Peoples Bank KS now owns 4,331 shares of the financial services provider's stock worth $400,000 after acquiring an additional 113 shares during the period. Sweeney & Michel LLC raised its position in Charles Schwab by 1.6% in the first quarter. Sweeney & Michel LLC now owns 7,333 shares of the financial services provider's stock worth $710,000 after acquiring an additional 115 shares during the period. Crumly & Associates Inc. boosted its stake in shares of Charles Schwab by 1.1% during the 2nd quarter. Crumly & Associates Inc. now owns 10,479 shares of the financial services provider's stock worth $967,000 after acquiring an additional 115 shares during the last quarter. Finally, Cypress Capital Group boosted its stake in shares of Charles Schwab by 4.2% during the 1st quarter. Cypress Capital Group now owns 2,945 shares of the financial services provider's stock worth $277,000 after acquiring an additional 118 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors.

Charles Schwab Price Performance

NYSE SCHW opened at $97.08 on Tuesday. 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 stock has a market cap of $167.88 billion, a price-to-earnings ratio of 17.65, a PEG ratio of 0.82 and a beta of 0.79. The company's 50 day moving average is $105.50 and its two-hundred day moving average is $98.15.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, topping analysts' consensus estimates of $1.56 by $0.06. The business had revenue of $7.07 billion during the quarter, compared to analyst estimates of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The company's revenue was up 20.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.14 earnings per share. As a group, research analysts anticipate that The Charles Schwab Corporation will post 6.46 earnings per share for the current year.

Charles Schwab Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were paid a dividend of $0.32 per share. The ex-dividend date was Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.3%. Charles Schwab's payout ratio is 23.27%.

Insider Activity at Charles Schwab

In other Charles Schwab news, Director Paula A. Sneed sold 5,263 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $107.15, for a total value of $563,930.45. Following the completion of the sale, the director owned 91,711 shares in the company, valued at approximately $9,826,833.65. This represents a 5.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Nigel J. Murtagh sold 32,947 shares of the firm's stock in a transaction dated 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 sale, the insider directly owned 57,972 shares in the company, valued at approximately $6,029,667.72. This represents a 36.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 645,582 shares of company stock worth $69,553,935 in the last 90 days. Company insiders own 6.30% of the company's stock.

Charles Schwab News Roundup

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

• Positive Sentiment: Evercore ISI initiated coverage with an “in-line” rating and a $107 price target, implying roughly 10% upside from the referenced $97.08 level. The target provides a constructive valuation signal even though the firm is not recommending an outright outperform rating. Evercore ISI initiates Charles Schwab at In Line
• Positive Sentiment: Analysts expect SCHW’s third-quarter results to benefit from robust trading activity, higher net interest revenue and stronger asset-management fees. These factors could support earnings growth ahead of the company’s quarterly report. Can Robust Trading, Higher NIR Support Schwab’s Q3 Earnings?
• Positive Sentiment: Longer-term commentary points to potential artificial-intelligence-related benefits, which could improve operating efficiency and strengthen Schwab’s competitive position over time. Charles Schwab Earnings And Long-Term AI Tailwinds
• Neutral Sentiment: Evercore’s “in-line” initiation indicates expectations are broadly balanced at current levels. The reported market value and European premarket pricing provide context but do not represent new company-specific catalysts. Charles Schwab Coverage Initiated by Analysts at Evercore
• Negative Sentiment: Rising operating expenses are identified as a headwind for third-quarter results and could offset some of the benefits from stronger trading, interest revenue and fee income. Higher long-term Treasury yields may also increase market sensitivity and investor concerns about valuation and funding conditions. Can Robust Trading, Higher NIR Support Schwab’s Q3 Earnings?

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SCHW. Raymond James Financial reissued an "outperform" rating and set a $145.00 price objective on shares of Charles Schwab in a research report on Wednesday, July 22nd. UBS Group decreased their target price on Charles Schwab from $128.00 to $113.00 and set a "buy" rating on the stock in a report on Wednesday, October 7th. BMO Capital Markets downgraded Charles Schwab from an "outperform" rating to a "market perform" rating and set a $105.00 target price on the stock. in a research report on Monday, July 20th. Compass Point assumed coverage on Charles Schwab in a research report on Monday, August 3rd. They set a "buy" rating and a $135.00 target price on the stock. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Charles Schwab in a report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Charles Schwab has an average rating of "Moderate Buy" and an average price target of $118.75.

Charles Schwab Company 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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