Voleon Capital Management LP Makes New $540,000 Investment in The Charles Schwab Corporation $SCHW

Key Points

• Voleon Capital Management LP has acquired a new position in Charles Schwab, purchasing 6,903 shares valued at approximately $540,000 in the first quarter of the year.
• Charles Schwab's quarterly earnings report showed earnings per share of $1.14, exceeding analyst expectations, and a revenue of $5.85 billion, which is up 24.8% year-over-year.
• The company has announced a share repurchase program of $20 billion, indicating a management belief that its shares are undervalued.

Voleon Capital Management LP purchased a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the first quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 6,903 shares of the financial services provider's stock, valued at approximately $540,000.

Several other large investors have also bought and sold shares of SCHW. Vanguard Group Inc. grew its stake in shares of 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 acquiring an additional 19,817,022 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in Charles Schwab by 12.3% during the first 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 lifted its holdings in shares of Charles Schwab by 10.8% in the first quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock worth $1,365,227,000 after buying an additional 1,700,384 shares in the last quarter. Alliancebernstein L.P. lifted its holdings in shares of Charles Schwab by 16.0% in the first quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock worth $1,339,822,000 after buying an additional 2,355,309 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Charles Schwab by 5.0% in the first quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock worth $1,220,107,000 after buying an additional 743,906 shares in the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Stock Performance

Shares of NYSE SCHW traded down $0.44 during mid-day trading on Friday, hitting $93.50. 7,701,819 shares of the company were exchanged, compared to its average volume of 8,512,390. The stock has a 50 day simple moving average of $95.41 and a 200-day simple moving average of $86.76. The firm has a market cap of $169.72 billion, a price-to-earnings ratio of 25.13, a price-to-earnings-growth ratio of 0.93 and a beta of 0.96. 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 Charles Schwab Corporation has a 1-year low of $61.81 and a 1-year high of $99.59.

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

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were paid 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 is presently 29.03%.

Charles Schwab declared that its Board of Directors has approved a share 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 shares through open market purchases. Shares buyback plans are often an indication that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Keefe, Bruyette & Woods boosted their price objective on shares of Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research report on Monday, July 21st. Truist Financial increased their price target on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research report 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 report on Friday, July 18th. Cowen reiterated a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. Finally, Citigroup raised their price objective on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" 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 issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $99.60.

Insider Buying and Selling at Charles Schwab

In other news, insider Paul V. Woolway sold 3,205 shares of the company's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $95.20, for a total transaction of $305,116.00. Following the completion of the sale, the insider directly owned 37,983 shares of the company's stock, valued at $3,615,981.60. This represents a 7.78% 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 Nigel J. Murtagh sold 24,096 shares of the stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total value of $2,359,239.36. Following the completion of the sale, the insider directly owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 298,214 shares of company stock valued at $29,022,580 over the last 90 days. 6.30% of the stock is owned by insiders.

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.