Giverny Capital Inc. Buys 9,885 Shares of The Charles Schwab Corporation $SCHW

Giverny Capital Inc. grew its stake in shares of The Charles Schwab Corporation (NYSE:SCHW) by 0.6% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,585,661 shares of the financial services provider’s stock after purchasing an additional 9,885 shares during the quarter. Charles Schwab comprises about 5.3% of Giverny Capital Inc.’s portfolio, making the stock its 6th biggest holding. Giverny Capital Inc.’s holdings in Charles Schwab were worth $158,423,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently made changes to their positions in SCHW. Dogwood Wealth Management LLC increased its position in shares of Charles Schwab by 99.2% during the 4th quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider’s stock worth $25,000 after purchasing an additional 123 shares during the last quarter. Piscataqua Savings Bank acquired a new position in shares of Charles Schwab during the 4th quarter worth approximately $26,000. GoalVest Advisory LLC acquired a new position in shares of Charles Schwab during the 4th quarter worth approximately $28,000. Beacon Financial Strategies CORP acquired a new position in shares of Charles Schwab during the 4th quarter worth approximately $29,000. Finally, Optima Capital LLC acquired a new position in shares of Charles Schwab during the 4th quarter worth approximately $30,000. Institutional investors and hedge funds own 84.38% of the company’s stock.

Charles Schwab Stock Performance

SCHW opened at $91.04 on Friday. The firm has a market cap of $158.32 billion, a P/E ratio of 18.06, a price-to-earnings-growth ratio of 0.86 and a beta of 0.77. The Charles Schwab Corporation has a 52-week low of $83.96 and a 52-week high of $107.50. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.62 and a current ratio of 0.62. The business’s fifty day moving average is $91.05 and its 200-day moving average is $95.25.

Charles Schwab (NYSE:SCHW) last released its earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.04. The company had revenue of $6.48 billion for the quarter, compared to analyst estimates of $6.39 billion. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.Charles Schwab’s quarterly revenue was up 15.8% on a year-over-year basis. During the same period in the prior year, the firm posted $1.04 EPS. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Sell-side analysts expect 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. Stockholders of record on Friday, May 8th were issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Friday, May 8th. Charles Schwab’s dividend payout ratio is 25.40%.

Insider Transactions at Charles Schwab

In other news, Director Frank C. Herringer sold 2,520 shares of the stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $90.60, for a total transaction of $228,312.00. Following the sale, the director directly owned 177,508 shares of the company’s stock, valued at approximately $16,082,224.80. This represents a 1.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Paul V. Woolway sold 7,941 shares of the stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $100.00, for a total value of $794,100.00. Following the sale, the insider directly owned 29,866 shares in the company, valued at approximately $2,986,600. This trade represents a 21.00% 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. In the last three months, insiders have sold 59,700 shares of company stock valued at $5,889,131. 6.30% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Keefe, Bruyette & Woods assumed coverage on Charles Schwab in a report on Wednesday, April 8th. They set an “outperform” rating and a $110.00 target price on the stock. Piper Sandler boosted their price target on Charles Schwab from $103.00 to $105.00 and gave the company a “neutral” rating in a research note on Friday, May 15th. Raymond James Financial boosted their price target on Charles Schwab from $126.00 to $137.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. TD Cowen boosted their price target on Charles Schwab from $108.00 to $109.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Finally, Barclays boosted their price target on Charles Schwab from $117.00 to $127.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Charles Schwab currently has an average rating of “Moderate Buy” and a consensus price target of $116.00.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: Schwab reported monthly activity highlights for May, and the company said the month set records, reinforcing confidence in client growth and trading momentum. Schwab Reports Monthly Activity Highlights
• Positive Sentiment: Market commentary says the stock is also getting a lift from a broader rebound in financials and renewed investor focus on Schwab’s strong client and trading trends. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum
• Positive Sentiment: Recent analyst actions have been constructive, with firms raising earnings estimates and maintaining buy-style ratings, which supports the bullish setup for SCHW. Charles Schwab stock research page
• Neutral Sentiment: Schwab also announced the closure and liquidation of its Schwab Ariel Opportunities ETF, a fund-level action that appears unlikely to materially affect the parent company’s near-term stock performance. Schwab Asset Management Announces Closure and Liquidation of the Schwab Ariel Opportunities ETF (SAEF)
• Negative Sentiment: There is still some caution in the background from mixed institutional positioning and heavy insider selling over the past six months, which could limit upside if sentiment weakens. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum

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.