Vident Advisory LLC Raises Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Vident Advisory LLC increased its stake in The Charles Schwab Corporation by 22.0%, owning 57,588 shares valued at $4.5 million after purchasing an additional 10,394 shares.
• The company announced a $20 billion stock buyback program, suggesting that its board believes the stock is undervalued, and it also paid a quarterly dividend of $0.27 per share.
• Charles Schwab reported earnings of $1.14 per share in its last quarter, surpassing expectations, with a revenue of $5.85 billion, showcasing a 24.8% increase from the previous year.

Vident Advisory LLC lifted its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 22.0% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 57,588 shares of the financial services provider's stock after buying an additional 10,394 shares during the period. Vident Advisory LLC's holdings in Charles Schwab were worth $4,508,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the business. Atwood & Palmer Inc. purchased a new position in shares of Charles Schwab during the 1st quarter worth approximately $25,000. Westside Investment Management Inc. raised its holdings in shares of Charles Schwab by 75.0% in the first 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 last quarter. Stone House Investment Management LLC purchased a new stake in shares of Charles Schwab in the first quarter valued at $31,000. WFA Asset Management Corp acquired a new stake in shares of Charles Schwab during the first quarter valued at $33,000. Finally, Cornerstone Planning Group LLC increased its position in 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 purchasing an additional 220 shares in the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Charles Schwab news, insider Jonathan S. Beatty sold 6,144 shares of the stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the transaction, the insider owned 11,923 shares in the company, valued at $1,154,265.63. This trade represents a 34.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Paul V. Woolway sold 10,129 shares of Charles Schwab stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total value of $911,711.29. Following the transaction, the insider directly owned 39,154 shares of the company's stock, valued at approximately $3,524,251.54. The trade was a 20.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 295,009 shares of company stock worth $28,717,464 over the last ninety days. 6.30% of the stock is currently owned by corporate insiders.

Charles Schwab Stock Down 0.1%

SCHW stock traded down $0.06 during mid-day trading on Wednesday, hitting $96.06. 7,261,150 shares of the company were exchanged, compared to its average volume of 9,887,233. The company has a market capitalization of $174.36 billion, a PE ratio of 25.82, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59. The firm has a fifty day simple moving average of $94.87 and a 200 day simple moving average of $86.06.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings data 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 during 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 period in the previous year, the firm posted $0.73 earnings per share. On average, research analysts forecast that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

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

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a $0.27 dividend. The ex-dividend date was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio is currently 29.03%.

Analyst Upgrades and Downgrades

SCHW has been the topic of several recent analyst reports. Morgan Stanley upped their price objective on shares of Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research note on Tuesday, July 29th. Barclays upped their price objective on shares of Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. 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. Wells Fargo & Company set a $102.00 price objective on shares of Charles Schwab and gave the company an "overweight" rating in a research note on Friday, July 18th. Finally, Keefe, Bruyette & Woods increased their price target on shares of Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research note on Monday, July 21st. Sixteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Charles Schwab currently has a consensus rating of "Moderate Buy" and an average target price of $99.60.

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.