Truist Financial Corp Sells 56,228 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Truist Financial Corp has reduced its stake in The Charles Schwab Corporation by 3.1%, selling 56,228 shares and holding a total of 1,774,426 shares valued at approximately $161.9 million.
• Insider trading activity has been notable, with two insiders selling a combined total of 9,434 shares, reflecting significant decreases in their ownership percentages.
• Charles Schwab recently announced a $20 billion stock buyback plan and reported earnings that exceeded expectations, with a revenue increase of 24.8% year-over-year.

Truist Financial Corp trimmed its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 3.1% in the second quarter, according to the company in its most recent filing with the SEC. The fund owned 1,774,426 shares of the financial services provider's stock after selling 56,228 shares during the quarter. Truist Financial Corp owned 0.10% of Charles Schwab worth $161,899,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in Charles Schwab by 15.4% in the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after purchasing an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of Charles Schwab by 12.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock worth $6,422,795,000 after buying an additional 8,954,248 shares during the period. Northern Trust Corp lifted its stake in shares of Charles Schwab by 10.8% in the 1st quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock valued at $1,365,227,000 after acquiring an additional 1,700,384 shares during the last quarter. Alliancebernstein L.P. boosted its holdings in Charles Schwab by 16.0% during the 1st quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock valued at $1,339,822,000 after acquiring an additional 2,355,309 shares during the period. Finally, Invesco Ltd. grew its position in Charles Schwab by 5.0% during the 1st quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock worth $1,220,107,000 after acquiring an additional 743,906 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Insiders Place Their Bets

In related news, insider Jonathan S. Beatty sold 6,144 shares of the stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the completion of the transaction, the insider directly owned 11,923 shares in the company, valued at $1,154,265.63. This trade represents a 34.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Paul V. Woolway sold 3,290 shares of Charles Schwab stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $96.06, for a total transaction of $316,037.40. Following the transaction, the insider directly owned 41,188 shares of the company's stock, valued at approximately $3,956,519.28. This trade represents a 7.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 263,923 shares of company stock valued at $25,932,955 in the last 90 days. Corporate insiders own 6.30% of the company's stock.

Analyst Ratings Changes

Several brokerages have weighed in on SCHW. Barclays boosted their price objective on Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. Citigroup raised their price target on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Truist Financial upped their price objective on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research note on Friday, August 15th. Redburn Atlantic upgraded shares of Charles Schwab from a "sell" rating to a "neutral" rating and increased their target price for the stock from $65.00 to $82.00 in a report on Monday, June 9th. Finally, Piper Sandler boosted their price target on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Sixteen investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $100.00.

Charles Schwab Price Performance

Shares of NYSE SCHW opened at $95.45 on Wednesday. The Charles Schwab Corporation has a 1 year low of $62.41 and a 1 year high of $99.59. The stock has a market capitalization of $173.26 billion, a P/E ratio of 25.66, a P/E/G ratio of 0.96 and a beta of 0.96. The company's 50-day moving average is $95.56 and its 200 day moving average is $88.33. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same period in the previous year, the firm posted $0.73 EPS. The business's revenue was up 24.8% on a year-over-year basis. On average, sell-side analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab declared that its board has initiated a stock buyback plan on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board believes its shares are undervalued.

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, August 8th. Charles Schwab's dividend payout ratio is presently 29.03%.

Charles Schwab Company Profile

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.

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