The Charles Schwab Corporation $SCHW Stock Holdings Lowered by Diversified Management Inc.

Key Points

• Diversified Management Inc. reduced its Charles Schwab stake by 83.3% in the second quarter, selling 47,691 shares and retaining 9,537 shares worth approximately $880,000. Institutional investors collectively own 84.38% of SCHW.
• 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. The company declared a quarterly dividend of $0.32 per share, representing a 1.2% yield.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $121.17 versus a recent price of $107.65. Meanwhile, insiders sold roughly $41.3 million of shares over the past three months.

Diversified Management Inc. cut its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 83.3% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 9,537 shares of the financial services provider's stock after selling 47,691 shares during the period. Diversified Management Inc.'s holdings in Charles Schwab were worth $880,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Dogwood Wealth Management LLC lifted its position in shares of Charles Schwab by 99.2% during the 4th quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock valued at $25,000 after acquiring an additional 123 shares during the last quarter. Scarborough Advisors LLC acquired a new position in shares of Charles Schwab in the 1st quarter worth $29,000. Optima Capital LLC acquired a new stake in shares of Charles Schwab during the fourth quarter worth $30,000. McIlrath & Eck LLC raised its position in shares of Charles Schwab by 143.2% during the fourth quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider's stock worth $32,000 after purchasing an additional 189 shares during the period. Finally, Main Street Group LTD purchased a new stake in shares of Charles Schwab during the first quarter valued at $33,000. 84.38% of the stock is currently owned by institutional investors.

Charles Schwab Stock Down 0.3%

Shares of Charles Schwab stock opened at $107.65 on Wednesday. The Charles Schwab Corporation has a 1 year low of $83.96 and a 1 year high of $109.32. The company has a market cap of $187.21 billion, a P/E ratio of 19.57, a P/E/G ratio of 0.82 and a beta of 0.76. 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 stock has a 50-day moving average price of $98.07 and a 200 day moving average price of $95.69.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.06. The company had revenue of $7.07 billion for the quarter, compared to analysts' expectations of $6.90 billion. Charles Schwab had a return on equity of 24.73% and a net margin of 38.79%.The business's revenue for the quarter was up 20.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.14 EPS. As a group, analysts expect that The Charles Schwab Corporation will post 6.46 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Friday, August 14th. Charles Schwab's dividend payout ratio (DPR) is currently 23.27%.

Insider Activity

In other Charles Schwab news, insider Dennis Howard sold 28,000 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $105.01, for a total value of $2,940,280.00. Following the transaction, the insider owned 10,470 shares in the company, valued at approximately $1,099,454.70. This represents a 72.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Walter W. Bettinger sold 192,488 shares of Charles Schwab stock in a transaction on Monday, July 27th. The shares were sold at an average price of $103.90, for a total transaction of $19,999,503.20. Following the sale, the chairman directly owned 529,346 shares of the company's stock, valued at $54,999,049.40. This trade represents a 26.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 395,786 shares of company stock valued at $41,346,459 in the last three months. 6.30% of the stock is currently owned by insiders.

Trending Headlines about Charles Schwab

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

• Positive Sentiment: Schwab’s Trading Activity Index rose modestly in July, while company data showed retail investors were net buyers during market volatility, including purchases of discounted artificial-intelligence stocks. Continued trading and client engagement could support transaction-related revenue and reinforce Schwab’s growth outlook. Schwab Trading Activity Index up modestly in July Schwab retail investor activity
• Neutral Sentiment: Director Paula Sneed sold 5,263 shares, while insider Nigel Murtagh sold a combined 26,675 shares for approximately $2.91 million. Murtagh’s transactions were conducted under a pre-arranged Rule 10b5-1 plan, making the sales less conclusive as a signal of management sentiment, although the activity may encourage some caution. SEC insider trading filing
• Negative Sentiment: Linqto said it is continuing litigation against Forge Global and Schwab and seeking damages and legal-fee reimbursement related to more than 13,000 customers. The claims could create legal, reputational, and financial uncertainty, though liability has not been established. Linqto litigation announcement
• Negative Sentiment: A report highlighted Schwab’s disclosed risks involving client cryptocurrency assets and possible delays in returning assets. The report describes a potential risk rather than evidence of imminent insolvency, but it may weigh on sentiment surrounding custody and operational controls. Schwab crypto-asset risk report

Analyst Ratings Changes

A number of equities analysts recently weighed in on SCHW shares. Citigroup reiterated a "market outperform" rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. UBS Group set a $135.00 price objective on Charles Schwab in a report on Monday, August 3rd. Zacks Research raised shares of Charles Schwab from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 9th. Wolfe Research reiterated an "outperform" rating and issued a $127.00 target price on shares of Charles Schwab in a report on Tuesday, July 21st. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $121.17.

Charles Schwab Company 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.

Want to see what other hedge funds are holding SCHW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Charles Schwab Corporation (NYSE:SCHW - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source