Pacer Advisors Inc. Reduces Holdings in The Charles Schwab Corporation $SCHW

Pacer Advisors Inc. reduced its position in The Charles Schwab Corporation (NYSE:SCHW) by 36.2% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 83,634 shares of the financial services provider’s stock after selling 47,390 shares during the quarter. Pacer Advisors Inc.’s holdings in Charles Schwab were worth $7,860,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Souders Financial Advisors raised its position in shares of Charles Schwab by 2.3% in the fourth quarter. Souders Financial Advisors now owns 4,341 shares of the financial services provider’s stock valued at $434,000 after buying an additional 98 shares during the last quarter. Essex Financial Services Inc. boosted its position in Charles Schwab by 0.8% during the fourth quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider’s stock worth $1,282,000 after acquiring an additional 105 shares during the last quarter. FSM Wealth Advisors LLC boosted its position in Charles Schwab by 4.1% during the fourth quarter. FSM Wealth Advisors LLC now owns 2,688 shares of the financial services provider’s stock worth $269,000 after acquiring an additional 107 shares during the last quarter. Sheets Smith Wealth Management grew its stake in Charles Schwab by 0.7% during the 1st quarter. Sheets Smith Wealth Management now owns 14,521 shares of the financial services provider’s stock valued at $1,365,000 after acquiring an additional 108 shares in the last quarter. Finally, Acorn Financial Advisory Services Inc. ADV grew its stake in Charles Schwab by 4.5% during the 4th quarter. Acorn Financial Advisory Services Inc. ADV now owns 2,536 shares of the financial services provider’s stock valued at $253,000 after acquiring an additional 110 shares in the last quarter. Hedge funds and other institutional investors own 84.38% of the company’s stock.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Nigel J. Murtagh sold 32,947 shares of Charles Schwab stock in a transaction on Monday, July 27th. The stock was sold at an average price of $104.01, for a total value of $3,426,817.47. Following the sale, the insider owned 57,972 shares in the company, valued at $6,029,667.72. The trade was a 36.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 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 in the company, 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 have sold 363,848 shares of company stock valued at $37,874,706 over the last 90 days. Corporate insiders own 6.30% of the company’s stock.

Charles Schwab Stock Performance

Charles Schwab stock opened at $108.05 on Thursday. The firm has a 50 day simple moving average of $96.43 and a 200-day simple moving average of $95.55. The Charles Schwab Corporation has a 1-year low of $83.96 and a 1-year high of $108.55. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62. The stock has a market cap of $187.92 billion, a price-to-earnings ratio of 19.65, a price-to-earnings-growth ratio of 0.81 and a beta of 0.76.

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, 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 firm had revenue of $7.07 billion for the quarter, compared to analyst estimates of $6.90 billion. During the same quarter in the previous year, the company earned $1.14 EPS. The business’s revenue for the quarter was up 20.9% compared to the same quarter last year. On average, analysts expect that The Charles Schwab Corporation will post 6.46 EPS for the current year.

Charles Schwab Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a dividend of $0.32 per share. 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 23.27%.

Charles Schwab News Roundup

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

• Positive Sentiment: Analyst upgrade supports the shares. Compass Point initiated coverage with a “Buy” recommendation and later upgraded Schwab to “Strong Buy,” adding to the bullish research backdrop. Compass initiates coverage of Charles Schwab with Buy recommendation
• Positive Sentiment: Recent earnings remain a key catalyst. Schwab’s latest quarterly report exceeded expectations, with earnings per share of $1.62 versus the $1.56 consensus and revenue of $7.07 billion versus $6.90 billion expected. Revenue increased 20.9% year over year, reinforcing the company’s growth and profitability story. Why Charles Schwab Stock Jumped in July
• Positive Sentiment: Retail-client confidence is improving. Schwab’s Q3 sentiment report found that 47% of retail clients were bullish on U.S. stocks, while many active traders indicated they would buy market declines. Greater trading activity and investor confidence could support transaction-related revenue and asset flows. Schwab Q3 Retail Client Sentiment Report
• Positive Sentiment: Dividend and platform enhancements add shareholder appeal. Schwab declared a regular quarterly dividend of $0.32 per common share, while Orion’s fractional-share trading rollout for advisors using Schwab Advisor Services may improve the platform’s functionality and competitiveness. Charles Schwab Dividend and Retail Sentiment
• Neutral Sentiment: Valuation opinions are mixed. Some analysis suggests SCHW remains below estimated intrinsic value, but its roughly 69% three-year return and elevated earnings multiple mean investors may already be pricing in substantial improvement. Charles Schwab Stock Fair Value Analysis
• Negative Sentiment: Emerging crypto competition is a longer-term risk. Tokenized-stock exchanges are seeking to replicate Schwab’s brokerage model, though Wall Street and regulators remain skeptical. If the model gains traction, it could increase competitive pressure on traditional brokers. Crypto Exchanges Want to Be the Next Charles Schwab

Wall Street Analyst Weigh In

A number of analysts have commented on SCHW shares. Morgan Stanley increased their price objective on shares of Charles Schwab from $133.00 to $136.00 and gave the company an “overweight” rating in a report on Monday, July 27th. Raymond James Financial restated an “outperform” rating and set a $145.00 target price on shares of Charles Schwab in a report on Wednesday, July 22nd. Piper Sandler set a $118.00 price target on Charles Schwab in a research report on Tuesday, July 21st. TD Cowen increased their price target on Charles Schwab from $108.00 to $109.00 and gave the company a “buy” rating in a report on Friday, May 15th. Finally, Compass Point began coverage on Charles Schwab in a research report on Monday. They set a “buy” rating and a $135.00 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $121.17.

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.