Principal Securities Inc. Reduces Position in The Charles Schwab Corporation $SCHW

Principal Securities Inc. lessened its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW) by 10.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 135,839 shares of the financial services provider’s stock after selling 16,231 shares during the period. Principal Securities Inc.’s holdings in Charles Schwab were worth $13,572,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the business. Aviva PLC boosted its position in shares of Charles Schwab by 5.5% during the fourth quarter. Aviva PLC now owns 1,443,286 shares of the financial services provider’s stock valued at $144,199,000 after buying an additional 74,974 shares during the period. Peterson Wealth Services boosted its stake in shares of Charles Schwab by 97.2% during the fourth quarter. Peterson Wealth Services now owns 3,457 shares of the financial services provider’s stock valued at $345,000 after purchasing an additional 1,704 shares during the period. Great Valley Advisor Group Inc. boosted its stake in shares of Charles Schwab by 19.0% during the fourth quarter. Great Valley Advisor Group Inc. now owns 34,827 shares of the financial services provider’s stock valued at $3,480,000 after purchasing an additional 5,556 shares during the period. Kovack Advisors Inc. grew its holdings in shares of Charles Schwab by 42.2% in the fourth quarter. Kovack Advisors Inc. now owns 3,964 shares of the financial services provider’s stock worth $396,000 after purchasing an additional 1,177 shares during the last quarter. Finally, NDVR Inc. bought a new position in shares of Charles Schwab in the fourth quarter worth about $330,000. Hedge funds and other institutional investors own 84.38% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. UBS Group cut their price target on shares of Charles Schwab from $125.00 to $119.00 and set a “buy” rating on the stock in a report on Wednesday, April 8th. TD Cowen upped their price target on shares of Charles Schwab from $108.00 to $109.00 and gave the stock a “buy” rating in a report on Friday, May 15th. Morgan Stanley cut their price target on shares of Charles Schwab from $135.00 to $125.00 and set an “overweight” rating on the stock in a report on Friday, April 17th. Argus set a $108.00 price target on Charles Schwab in a report on Monday, April 20th. Finally, Jefferies Financial Group lowered their price target on Charles Schwab from $122.00 to $118.00 and set a “buy” rating for the company in a report on Monday, April 6th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $116.00.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: Erste Group Bank lifted its earnings estimates for Charles Schwab, raising FY2026 EPS to $6.16 from $6.01 and FY2027 EPS to $7.26 from $7.04, signaling improving profit expectations.
• Positive Sentiment: Charles Schwab Foundation expanded its partnership with SIFMA Foundation with a $2.85 million, multi-year commitment to boost investing education nationwide, reinforcing the company’s brand and community positioning. Article: Charles Schwab Foundation Expands Partnership with SIFMA Foundation to Broaden Access to Credible Investing Education Nationwide
• Positive Sentiment: Schwab continues to be highlighted in market commentary and industry outlooks alongside peers like Morgan Stanley and Interactive Brokers, keeping the stock in focus as a leading brokerage name.
• Neutral Sentiment: Several articles compared Schwab’s ETFs with competitors and highlighted the lower fees on products like the Schwab U.S. Small-Cap ETF, which may help attract assets but is not an immediate earnings catalyst. Article: Schwab (SCHA) vs. iShares (IJR): Which Small Cap ETF Should Investors Buy?
• Negative Sentiment: Schwab’s decision to cut ETF fees may improve competitiveness, but it can also pressure fund margins in the near term as the brokerage continues to compete on price. Article: Charles Schwab cuts ETF fees. Its fund lineup is getting cheaper.
• Negative Sentiment: Robinhood’s approval to underwrite IPOs increases competitive pressure in retail brokerage and could chip away at Schwab’s growth opportunities over time. Article: HOOD’s IPO Underwriting Approval Strengthens Its Super-App Ambitions

Insiders Place Their Bets

In other Charles Schwab news, insider Paul V. Woolway sold 7,941 shares of the company’s stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $100.00, for a total transaction of $794,100.00. Following the completion of the sale, the insider owned 29,866 shares in the company, valued at $2,986,600. This represents a 21.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nigel J. Murtagh sold 41,297 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the sale, the insider directly owned 57,972 shares of the company’s stock, valued at approximately $5,739,228. The trade was a 41.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 59,700 shares of company stock worth $5,889,131 over the last 90 days. Company insiders own 6.30% of the company’s stock.

Charles Schwab Stock Down 0.6%

NYSE:SCHW opened at $88.72 on Friday. The Charles Schwab Corporation has a 1-year low of $83.96 and a 1-year high of $107.50. The company has a 50-day moving average of $91.08 and a 200 day moving average of $95.28. The firm has a market cap of $154.30 billion, a PE ratio of 17.60, a price-to-earnings-growth ratio of 0.84 and a beta of 0.77. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62.

Charles Schwab (NYSE:SCHW) last released its quarterly earnings data on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, topping analysts’ consensus estimates of $1.39 by $0.04. The company had revenue of $6.48 billion during the quarter, compared to analyst estimates of $6.39 billion. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The firm’s revenue for the quarter was up 15.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.04 earnings per share. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. As a group, research analysts anticipate that The Charles Schwab Corporation will post 6.13 EPS for the current fiscal year.

Charles Schwab Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were issued a dividend of $0.32 per share. The ex-dividend date was Friday, May 8th. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. Charles Schwab’s dividend payout ratio is currently 25.40%.

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.