Smith Group Asset Management LLC Boosts Stock Holdings in The Charles Schwab Corporation $SCHW

Smith Group Asset Management LLC raised its stake in shares of The Charles Schwab Corporation (NYSE:SCHW) by 6.9% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 385,975 shares of the financial services provider’s stock after purchasing an additional 24,971 shares during the period. Charles Schwab accounts for approximately 1.9% of Smith Group Asset Management LLC’s holdings, making the stock its 27th biggest position. Smith Group Asset Management LLC’s holdings in Charles Schwab were worth $36,274,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in SCHW. Dogwood Wealth Management LLC grew its holdings in Charles Schwab by 99.2% during the 4th quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider’s stock valued at $25,000 after buying an additional 123 shares in the last quarter. Piscataqua Savings Bank bought a new position in shares of Charles Schwab during the 4th quarter valued at approximately $26,000. Scarborough Advisors LLC purchased a new position in shares of Charles Schwab in the first quarter valued at $29,000. Optima Capital LLC bought a new stake in Charles Schwab in the fourth quarter worth $30,000. Finally, McIlrath & Eck LLC raised its stake in Charles Schwab by 143.2% during the fourth quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider’s stock valued at $32,000 after purchasing an additional 189 shares in the last quarter. 84.38% of the stock is owned by institutional investors.

Insider Buying and Selling at Charles Schwab

In other news, insider Jonathan S. Beatty sold 2,000 shares of the stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $104.21, for a total value of $208,420.00. Following the sale, the insider directly owned 11,738 shares in the company, valued at approximately $1,223,216.98. This represents a 14.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Peter J. Morgan III sold 6,952 shares of the firm’s stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $102.03, for a total value of $709,312.56. The SEC filing for this sale provides additional information. Insiders sold 17,005 shares of company stock worth $1,733,892 over the last 90 days. Company insiders own 6.30% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have recently weighed in on SCHW shares. Weiss Ratings restated a “buy (b-)” rating on shares of Charles Schwab in a report on Thursday, June 18th. JPMorgan Chase & Co. lifted their price target on Charles Schwab from $128.00 to $131.00 and gave the stock an “overweight” rating in a research report on Friday, April 17th. Barclays lifted their price target on Charles Schwab from $122.00 to $125.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 22nd. Keefe, Bruyette & Woods started coverage on Charles Schwab in a research report on Wednesday, April 8th. They set an “outperform” rating and a $110.00 price objective on the stock. Finally, TD Cowen upped their price objective on Charles Schwab from $108.00 to $109.00 and gave the company a “buy” rating in a research report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $119.94.

Charles Schwab News Summary

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Planned $20 billion share repurchase: Charles Schwab reportedly plans to buy back $20 billion of its stock, a substantial capital-allocation commitment that could reduce shares outstanding, support earnings per share and signal management’s confidence in the company’s valuation and cash-generation outlook. Charles Schwab to buy back $20 billion of stock
• Positive Sentiment: Analysts continue to favor SCHW as a growth stock: Charles Schwab was included among analysts’ preferred growth names, reflecting confidence in demand trends and longer-term catalysts. The view is consistent with the company’s latest quarterly performance, which included earnings and revenue above consensus and 20.9% year-over-year revenue growth. Best Growth Stocks to Buy This Week
• Positive Sentiment: Retail investor sentiment is improving: Schwab executive James Kostulias said bullishness among retail traders is rising. Greater investor participation and trading activity could support Schwab’s brokerage-related revenue and asset-gathering trends. Charles Schwab executive discusses rising retail bullishness
• Positive Sentiment: Potential cryptocurrency-regulation tailwind: Schwab reportedly backed the CLARITY Act ahead of an August deadline. Clearer digital-asset rules could help established financial firms expand crypto-related products and services, although the legislation remains subject to the legislative process. Charles Schwab backs the CLARITY Act
• Neutral Sentiment: Commentary highlighting “three big reasons” to favor SCHW and a report on billionaire investor Andreas Halvorsen’s holdings add to positive market attention, but these opinions are not new company fundamentals or formal analyst actions. Three big reasons to favor Charles Schwab Andreas Halvorsen’s top picks
• Negative Sentiment: Several insiders sold shares, including General Counsel Peter J. Morgan III and executives Jonathan S. Beatty and Nigel J. Murtagh. The transactions were made under pre-arranged Rule 10b5-1 plans, reducing their significance as a bearish signal, but they may still create limited investor caution.

Charles Schwab Trading Up 1.9%

Shares of SCHW opened at $106.17 on Wednesday. The company’s fifty day simple moving average is $94.46 and its 200-day simple moving average is $95.37. The company has a market cap of $184.65 billion, a P/E ratio of 19.30, a P/E/G ratio of 0.84 and a beta of 0.77. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.48. The Charles Schwab Corporation has a twelve month low of $83.96 and a twelve month high of $107.50.

Charles Schwab (NYSE:SCHW) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, topping analysts’ consensus estimates of $1.56 by $0.06. The firm had revenue of $7.07 billion during the quarter, compared to analysts’ expectations of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.73%. The firm’s revenue for the quarter was up 20.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.14 EPS. As a group, analysts expect that The Charles Schwab Corporation will post 6.45 EPS for the current year.

Charles Schwab Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.28 annualized dividend and a yield of 1.2%. Charles Schwab’s dividend payout ratio (DPR) is presently 23.27%.

Charles Schwab Profile

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.