The Charles Schwab Corporation $SCHW Stock: Allen Investment Management LLC Reduces Stake

Key Points

• Allen Investment Management cut its Charles Schwab stake by 3.9%, selling 134,686 shares in the third quarter. It still held 3.28 million shares, valued at about $320.6 million, making SCHW its fifth-largest holding.
• Analyst sentiment was broadly positive: 18 analysts rated the stock Buy, five Hold, and one Sell, for a consensus “Moderate Buy” rating and an average price target of $119.91.
• Schwab reported quarterly EPS of $1.69, topping estimates of $1.66, while revenue of $7.17 billion came in just below forecasts. Revenue rose 16.9% year over year.

Allen Investment Management LLC trimmed its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 3.9% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 3,280,166 shares of the financial services provider's stock after selling 134,686 shares during the quarter. Charles Schwab makes up 3.6% of Allen Investment Management LLC's holdings, making the stock its 5th biggest holding. Allen Investment Management LLC owned approximately 0.19% of Charles Schwab worth $320,603,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Bank of New York Mellon Corp raised its position in Charles Schwab by 22.9% during the 1st quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider's stock worth $1,518,913,000 after purchasing an additional 3,009,884 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Charles Schwab by 3.5% in the first quarter. Bank of America Corp DE now owns 15,623,030 shares of the financial services provider's stock valued at $1,468,252,000 after buying an additional 530,191 shares during the period. Flossbach Von Storch SE acquired a new stake in shares of Charles Schwab in the second quarter valued at about $987,930,000. Dimensional Fund Advisors LP raised its position in shares of Charles Schwab by 1.1% during the first quarter. Dimensional Fund Advisors LP now owns 5,742,934 shares of the financial services provider's stock worth $539,705,000 after acquiring an additional 60,979 shares during the last quarter. Finally, Provident Trust Co. raised its position in shares of Charles Schwab by 0.4% during the second quarter. Provident Trust Co. now owns 3,716,441 shares of the financial services provider's stock worth $342,916,000 after acquiring an additional 13,616 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on SCHW. Wolfe Research reaffirmed an "outperform" rating and issued a $127.00 price objective (up from $123.00) on shares of Charles Schwab in a research note on Tuesday, July 21st. Truist Financial set a $115.00 target price on shares of Charles Schwab in a research report on Friday, October 16th. The Goldman Sachs Group restated a "buy" rating and set a $117.00 price target (down from $122.00) on shares of Charles Schwab in a report on Friday, October 16th. Raymond James Financial restated an "outperform" rating and issued a $145.00 price target (up from $137.00) on shares of Charles Schwab in a research report on Thursday, October 15th. Finally, Evercore set a $98.00 price target on shares of Charles Schwab in a research report on Wednesday, October 28th. Eighteen research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned 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 $119.91.

Charles Schwab Price Performance

Shares of SCHW opened at $91.56 on Friday. The firm has a market cap of $158.33 billion, a PE ratio of 15.62, a price-to-earnings-growth ratio of 0.81 and a beta of 0.77. The Charles Schwab Corporation has a 52-week low of $83.96 and a 52-week high of $114.53. The business's 50 day moving average price is $98.51 and its two-hundred day moving average price is $97.39. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.64 and a current ratio of 0.64.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings data on Thursday, October 15th. The financial services provider reported $1.69 EPS for the quarter, topping the consensus estimate of $1.66 by $0.03. The company had revenue of $7.17 billion during 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 company's quarterly revenue was up 16.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.31 EPS. On average, equities analysts anticipate that The Charles Schwab Corporation will post 6.41 EPS for the current year.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be paid a $0.32 dividend. The ex-dividend date is Friday, November 13th. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. Charles Schwab's dividend payout ratio (DPR) is currently 21.84%.

Insider Transactions at Charles Schwab

In other Charles Schwab news, insider Dennis Howard sold 2,198 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $110.00, for a total value of $241,780.00. Following the completion of the sale, the insider owned 6,980 shares of the company's stock, valued at approximately $767,800. This trade represents a 23.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jonathan S. Beatty sold 1,000 shares of the business's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $111.33, for a total value of $111,330.00. Following the sale, the insider owned 10,738 shares of the company's stock, valued at approximately $1,195,461.54. This represents a 8.52% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 278,574 shares of company stock valued at $31,302,606. 6.30% of the stock is currently owned by corporate insiders.

Charles Schwab Company Profile

The Charles Schwab Corporation is a financial services company that provides brokerage, banking, wealth management, and investment services. Its offerings include brokerage accounts, trading and research tools, retirement products, banking services, and investment advice for individuals, as well as services for independent financial advisors, employers, and institutions.

Founded in 1971 by Charles R. Schwab, the company helped popularize discount brokerage services. It expanded its brokerage business with the 2020 acquisition of TD Ameritrade, whose trading platform and services became part of Schwab.

Based in Westlake, Texas, Schwab primarily serves clients in the United States and also has an international presence.

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