Diversified Management Inc. cut its holdings in The Charles Schwab Corporation (NYSE:SCHW – Free Report) by 83.3% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 9,537 shares of the financial services provider’s stock after selling 47,691 shares during the quarter. Diversified Management Inc.’s holdings in Charles Schwab were worth $880,000 at the end of the most recent quarter.
Other large investors also recently added to or reduced their stakes in the company. Geode Capital Management LLC boosted its position in 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 worth $3,747,646,000 after purchasing an additional 98,242 shares during the period. Juno Financial Group LLC bought a new position in shares of Charles Schwab in the fourth quarter valued at approximately $2,591,000. Swiss Life Asset Management Ltd lifted its stake in shares of Charles Schwab by 4.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 407,179 shares of the financial services provider’s stock worth $40,681,000 after buying an additional 16,482 shares during the last quarter. Busey Bank lifted its stake in shares of Charles Schwab by 15.5% in the fourth quarter. Busey Bank now owns 258,962 shares of the financial services provider’s stock worth $25,873,000 after buying an additional 34,745 shares during the last quarter. Finally, Directional Asset Management bought a new stake in shares of Charles Schwab during the 4th quarter worth $1,409,000. 84.38% of the stock is owned by institutional investors.
Insider Buying and Selling at Charles Schwab
In related news, insider Nigel J. Murtagh sold 24,778 shares of the business’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $109.01, for a total transaction of $2,701,049.78. Following the transaction, the insider directly owned 57,972 shares in the company, valued at $6,319,527.72. The trade was a 29.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dennis Howard sold 28,000 shares of the company’s stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $105.01, for a total value of $2,940,280.00. Following the completion of the transaction, the insider directly owned 10,470 shares of the company’s stock, valued at approximately $1,099,454.70. This trade represents a 72.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 395,786 shares of company stock valued at $41,346,459 over the last quarter. Company insiders own 6.30% of the company’s stock.
Charles Schwab Trading Down 0.3%
Charles Schwab (NYSE:SCHW – Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.56 by $0.06. The firm had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.73%. The business’s revenue was up 20.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.14 EPS. As a group, sell-side analysts predict that The Charles Schwab Corporation will post 6.46 EPS for the current year.
Charles Schwab Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Friday, August 14th. Charles Schwab’s dividend payout ratio (DPR) is presently 23.27%.
Key Stories Impacting Charles Schwab
Here are the key news stories impacting Charles Schwab this week:
- Positive Sentiment: Schwab’s Trading Activity Index rose modestly in July, while company data showed retail investors were net buyers during market volatility, including purchases of discounted artificial-intelligence stocks. Continued trading and client engagement could support transaction-related revenue and reinforce Schwab’s growth outlook. Schwab Trading Activity Index up modestly in July Schwab retail investor activity
- Neutral Sentiment: Director Paula Sneed sold 5,263 shares, while insider Nigel Murtagh sold a combined 26,675 shares for approximately $2.91 million. Murtagh’s transactions were conducted under a pre-arranged Rule 10b5-1 plan, making the sales less conclusive as a signal of management sentiment, although the activity may encourage some caution. SEC insider trading filing
- Negative Sentiment: Linqto said it is continuing litigation against Forge Global and Schwab and seeking damages and legal-fee reimbursement related to more than 13,000 customers. The claims could create legal, reputational, and financial uncertainty, though liability has not been established. Linqto litigation announcement
- Negative Sentiment: A report highlighted Schwab’s disclosed risks involving client cryptocurrency assets and possible delays in returning assets. The report describes a potential risk rather than evidence of imminent insolvency, but it may weigh on sentiment surrounding custody and operational controls. Schwab crypto-asset risk report
Analyst Upgrades and Downgrades
A number of research analysts recently issued reports on the stock. UBS Group set a $135.00 target price on shares of Charles Schwab in a research note on Monday, August 3rd. BMO Capital Markets cut shares of Charles Schwab from an “outperform” rating to a “market perform” rating and set a $105.00 price target for the company. in a report on Monday, July 20th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Wolfe Research reiterated an “outperform” rating and issued a $127.00 price objective on shares of Charles Schwab in a research note on Tuesday, July 21st. Finally, Argus boosted their price objective on Charles Schwab from $108.00 to $114.00 and gave the stock a “buy” rating in a research report on Thursday, July 23rd. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Charles Schwab presently has an average rating of “Moderate Buy” and a consensus price target of $121.17.
Check Out Our Latest Report on Charles Schwab
Charles Schwab Company 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.
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