The Charles Schwab Corporation (NYSE:SCHW) Shares Acquired by Trajan Wealth LLC

Key Points

• Trajan Wealth LLC increased its stake in The Charles Schwab Corporation by 12.1% during the first quarter, owning 72,554 shares valued at approximately $5.68 million.
• Charles Schwab announced a $20 billion stock buyback plan, which allows it to reacquire up to 11.6% of its stock, signaling that the board believes the stock is undervalued.
• Despite some recent insider selling, most analysts maintain a positive outlook on SCHW, with an average rating of "Moderate Buy" and a target price of $99.35.

Trajan Wealth LLC grew its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 12.1% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 72,554 shares of the financial services provider's stock after buying an additional 7,809 shares during the quarter. Trajan Wealth LLC's holdings in Charles Schwab were worth $5,680,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also recently modified their holdings of SCHW. Vanguard Group Inc. lifted its holdings in shares of Charles Schwab by 15.4% during the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock valued at $11,616,380,000 after buying an additional 19,817,022 shares during the period. Primecap Management Co. CA lifted its holdings in shares of Charles Schwab by 229.3% during the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock valued at $1,096,083,000 after buying an additional 9,749,728 shares during the period. Kovitz Investment Group Partners LLC lifted its holdings in shares of Charles Schwab by 354.5% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 11,005,881 shares of the financial services provider's stock valued at $814,545,000 after buying an additional 8,584,173 shares during the period. Nuveen LLC bought a new position in Charles Schwab in the 1st quarter worth $440,699,000. Finally, Marshall Wace LLP raised its holdings in Charles Schwab by 742.0% in the 4th quarter. Marshall Wace LLP now owns 4,181,202 shares of the financial services provider's stock worth $309,451,000 after purchasing an additional 3,684,640 shares during the period. 84.38% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages recently commented on SCHW. Truist Financial raised their target price on Charles Schwab from $100.00 to $107.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Bank of America raised their price target on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a report on Monday, July 21st. Wells Fargo & Company set a $102.00 price objective on Charles Schwab and gave the company an "overweight" rating in a research report on Friday, July 18th. Cowen restated a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Finally, Morgan Stanley lifted their price target on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and sixteen have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $99.35.

Insider Activity at Charles Schwab

In related news, insider Paul V. Woolway sold 10,129 shares of Charles Schwab stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total transaction of $911,711.29. Following the transaction, the insider directly owned 39,154 shares of the company's stock, valued at $3,524,251.54. This trade represents a 20.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, General Counsel Peter J. Morgan III sold 10,176 shares of Charles Schwab stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $87.39, for a total transaction of $889,280.64. The disclosure for this sale can be found here. Insiders sold a total of 308,016 shares of company stock valued at $29,341,433 over the last quarter. 6.30% of the stock is owned by insiders.

Charles Schwab Stock Down 3.1%

Shares of SCHW stock traded down $3.06 during mid-day trading on Wednesday, hitting $95.63. The stock had a trading volume of 12,455,199 shares, compared to its average volume of 9,176,303. The firm has a market capitalization of $173.59 billion, a P/E ratio of 25.71, a price-to-earnings-growth ratio of 0.95 and a beta of 0.96. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.53. The Charles Schwab Corporation has a 12-month low of $61.16 and a 12-month high of $99.59. The firm's 50-day moving average is $92.72 and its two-hundred day moving average is $84.69.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. The company had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.73 earnings per share. On average, analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 8th will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Charles Schwab announced that its Board of Directors has authorized a stock buyback plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.