The Charles Schwab Corporation $SCHW Stock Position Lowered by USS Investment Management Ltd

Key Points

• USS Investment Management Ltd reduced its stake in The Charles Schwab Corporation by 18.6%, selling 55,600 shares and retaining a total of 242,843 shares valued at approximately $19 million.
• In its latest earnings report, Charles Schwab reported $1.14 earnings per share, exceeding analysts' expectations and showing a 24.8% increase in revenue year-over-year.
• The company's board approved a $20 billion share buyback plan, indicating confidence that its stock is undervalued, while also declaring a quarterly dividend of $0.27 per share.

USS Investment Management Ltd lowered its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 18.6% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 242,843 shares of the financial services provider's stock after selling 55,600 shares during the quarter. USS Investment Management Ltd's holdings in Charles Schwab were worth $19,016,000 as of its most recent filing with the SEC.

Other large investors have also modified their holdings of the company. Vanguard Group Inc. grew its stake in 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 purchasing an additional 19,817,022 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in Charles Schwab by 12.3% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock valued at $6,422,795,000 after purchasing an additional 8,954,248 shares in the last quarter. Northern Trust Corp grew its stake in Charles Schwab by 10.8% during 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 purchasing an additional 1,700,384 shares in the last quarter. Alliancebernstein L.P. grew its stake 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 purchasing an additional 2,355,309 shares in the last quarter. Finally, Invesco Ltd. grew its stake 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 valued at $1,220,107,000 after purchasing an additional 743,906 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Stock Performance

NYSE:SCHW traded up $0.21 during trading hours on Tuesday, reaching $93.66. 10,771,963 shares of the stock were exchanged, compared to its average volume of 8,476,118. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The firm has a 50 day simple moving average of $95.29 and a 200-day simple moving average of $86.52. The Charles Schwab Corporation has a 52 week low of $61.16 and a 52 week high of $99.59. The stock has a market capitalization of $170.01 billion, a P/E ratio of 25.18, a P/E/G ratio of 0.92 and a beta of 0.96.

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

Charles Schwab Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.27 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Charles Schwab announced that its Board of Directors has authorized a stock repurchase plan on Thursday, July 24th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have weighed in on SCHW shares. Wells Fargo & Company set a $102.00 price objective on Charles Schwab and gave the company an "overweight" rating in a research note on Friday, July 18th. Barclays raised their price objective on Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. Keefe, Bruyette & Woods raised their price objective on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. Truist Financial increased their target price on Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a report on Friday, August 15th. Finally, Piper Sandler increased their target price on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a report on Tuesday, July 15th. Sixteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Charles Schwab currently has a consensus rating of "Moderate Buy" and a consensus price target of $99.60.

Insiders Place Their Bets

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the sale, the chairman owned 590,734 shares of the company's stock, valued at approximately $58,388,148.56. This trade represents a 22.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Paul V. Woolway sold 3,205 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $95.20, for a total value of $305,116.00. Following the completion of the sale, the insider directly owned 37,983 shares in the company, valued at approximately $3,615,981.60. This trade represents a 7.78% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 298,214 shares of company stock worth $29,022,580. 6.30% of the stock is currently owned by insiders.

Charles Schwab 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.