SummitTX Capital L.P. Purchases New Position in The Charles Schwab Corporation $SCHW

SummitTX Capital L.P. acquired a new position in The Charles Schwab Corporation (NYSE:SCHW) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 26,841 shares of the financial services provider’s stock, valued at approximately $2,523,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in SCHW. State Street Corp raised its stake in shares of Charles Schwab by 1.0% in the third quarter. State Street Corp now owns 73,156,290 shares of the financial services provider’s stock worth $6,984,231,000 after purchasing an additional 691,671 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Charles Schwab by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider’s stock valued at $3,747,646,000 after buying an additional 98,242 shares during the last quarter. Franklin Resources Inc. increased its holdings in Charles Schwab by 0.3% in the 4th quarter. Franklin Resources Inc. now owns 30,184,369 shares of the financial services provider’s stock worth $3,015,720,000 after buying an additional 78,020 shares in the last quarter. Primecap Management Co. CA increased its holdings in Charles Schwab by 9.7% in the 4th quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider’s stock worth $2,325,512,000 after buying an additional 2,066,884 shares in the last quarter. Finally, Fisher Asset Management LLC raised its position in Charles Schwab by 0.8% in the 4th quarter. Fisher Asset Management LLC now owns 21,818,514 shares of the financial services provider’s stock worth $2,179,888,000 after buying an additional 171,926 shares during the last quarter. 84.38% of the stock is owned by institutional investors.

Insider Activity

In other Charles Schwab news, insider Nigel J. Murtagh sold 4,053 shares of the company’s stock in a transaction that occurred on Tuesday, July 21st. The shares were sold at an average price of $104.14, for a total value of $422,079.42. Following the completion of the transaction, the insider directly owned 57,972 shares in the company, valued at $6,037,204.08. This represents a 6.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $102.03, for a total value of $709,312.56. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 17,005 shares of company stock valued at $1,733,892 in the last 90 days. Company insiders own 6.30% of the company’s stock.

Key Charles Schwab News

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 Stock Performance

SCHW opened at $106.17 on Wednesday. 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 company has a market cap of $184.65 billion, a price-to-earnings ratio of 19.30, a PEG ratio of 0.84 and a beta of 0.77. The company’s 50 day moving average is $94.46 and its 200 day moving average is $95.37. The Charles Schwab Corporation has a 12-month low of $83.96 and a 12-month high of $107.50.

Charles Schwab (NYSE:SCHW) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.06. Charles Schwab had a net margin of 38.79% and a return on equity of 24.73%. The company had revenue of $7.07 billion during the quarter, compared to analyst estimates of $6.90 billion. During the same period in the previous year, the business posted $1.14 earnings per share. The firm’s quarterly revenue was up 20.9% compared to the same quarter last year. On average, equities research analysts predict that The Charles Schwab Corporation will post 6.45 EPS for the current year.

Charles Schwab Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a dividend of $0.32 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.2%. Charles Schwab’s payout ratio is presently 23.27%.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on SCHW shares. Wolfe Research restated an “outperform” rating and set a $127.00 target price on shares of Charles Schwab in a research note on Tuesday, July 21st. Weiss Ratings reiterated a “buy (b-)” rating on shares of Charles Schwab in a research note on Thursday, June 18th. Piper Sandler set a $118.00 price objective on shares of Charles Schwab in a report on Tuesday, July 21st. Barclays increased their price objective on shares of Charles Schwab from $122.00 to $125.00 and gave the company an “overweight” rating in a research report on Wednesday, July 22nd. Finally, Morgan Stanley raised their target price on shares of Charles Schwab from $133.00 to $136.00 and gave the stock an “overweight” rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $119.94.

About Charles Schwab

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.