Versor Investments LP Invests $587,000 in The Charles Schwab Corporation $SCHW

Key Points

• Versor Investments LP has acquired 7,500 shares of The Charles Schwab Corporation, valued at approximately $587,000, as per their recent SEC filing.
• Multiple institutional investors have increased their stakes in Charles Schwab, including Vanguard Group Inc. which raised its position by 15.4%, now holding over $11.6 billion in shares.
• Charles Schwab plans to repurchase up to $20 billion in shares, reflecting the board's belief that the stock is undervalued, alongside announcing a quarterly dividend of $0.27 per share.

Versor Investments LP purchased a new position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 7,500 shares of the financial services provider's stock, valued at approximately $587,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in SCHW. Atwood & Palmer Inc. purchased a new position in shares of Charles Schwab in the 1st quarter worth about $25,000. Westside Investment Management Inc. grew its stake in shares of Charles Schwab by 75.0% during the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock worth $27,000 after acquiring an additional 150 shares during the period. Stone House Investment Management LLC bought a new position in shares of Charles Schwab during the 1st quarter worth $31,000. WFA Asset Management Corp bought a new position in shares of Charles Schwab during the 1st quarter worth $33,000. Finally, Cornerstone Planning Group LLC grew its stake in shares of Charles Schwab by 90.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock worth $36,000 after acquiring an additional 220 shares during the period. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Price Performance

Shares of Charles Schwab stock traded down $0.1690 during trading on Friday, hitting $95.6510. The stock had a trading volume of 12,859,422 shares, compared to its average volume of 7,972,781. The firm has a market cap of $173.63 billion, a price-to-earnings ratio of 25.71, a P/E/G ratio of 0.94 and a beta of 0.96. The Charles Schwab Corporation has a 12 month low of $61.16 and a 12 month high of $99.59. The business's 50-day moving average is $93.85 and its 200 day moving average is $85.34. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47.

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

Charles Schwab Dividend Announcement

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

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

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. TD Securities increased their price target on Charles Schwab from $95.00 to $113.00 and gave the stock a "buy" rating in a research note on Tuesday, May 20th. Piper Sandler increased their price target on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. Wells Fargo & Company set a $102.00 price target on Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. Morgan Stanley lifted their price target on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Finally, Keefe, Bruyette & Woods lifted their price target on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research report on Monday, July 21st. Sixteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $99.60.

Insider Transactions at Charles Schwab

In other news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the sale, the chairman owned 590,734 shares in the company, valued at approximately $58,388,148.56. This trade represents a 22.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jonathan S. Beatty sold 2,850 shares of the firm's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $87.57, for a total transaction of $249,574.50. Following the sale, the insider owned 15,219 shares in the company, valued at approximately $1,332,727.83. This trade represents a 15.77% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 250,340 shares of company stock valued at $24,250,303. Corporate insiders own 6.30% of the company's stock.

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.