Principal Securities Inc. Decreases 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 the company in its most recent 13F filing with the Securities and Exchange Commission. The fund 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 quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Aviva PLC lifted its holdings in shares of Charles Schwab by 5.5% during the 4th quarter. Aviva PLC now owns 1,443,286 shares of the financial services provider’s stock valued at $144,199,000 after purchasing an additional 74,974 shares during the last quarter. Peterson Wealth Services lifted its holdings in shares of Charles Schwab by 97.2% during the 4th 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 last quarter. Great Valley Advisor Group Inc. raised its position in shares of Charles Schwab by 19.0% in the 4th 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 last quarter. Kovack Advisors Inc. raised its position in shares of Charles Schwab by 42.2% in the 4th quarter. Kovack Advisors Inc. now owns 3,964 shares of the financial services provider’s stock valued at $396,000 after purchasing an additional 1,177 shares during the last quarter. Finally, NDVR Inc. purchased a new position in shares of Charles Schwab in the 4th quarter valued at approximately $330,000. Hedge funds and other institutional investors own 84.38% of the company’s stock.

Analyst Ratings Changes

Several equities analysts recently commented on SCHW shares. Raymond James Financial increased their price objective on shares of Charles Schwab from $126.00 to $137.00 and gave the company an “outperform” rating in a research report on Friday, May 15th. TD Cowen raised their target price on Charles Schwab from $108.00 to $109.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Keefe, Bruyette & Woods assumed coverage on Charles Schwab in a research note on Wednesday, April 8th. They issued an “outperform” rating and a $110.00 target price for the company. UBS Group reduced their target price on Charles Schwab from $125.00 to $119.00 and set a “buy” rating for the company in a research note on Wednesday, April 8th. Finally, Truist Financial reduced their price target on shares of Charles Schwab from $122.00 to $120.00 and set a “buy” rating for the company in a research report on Wednesday, April 1st. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Charles Schwab presently has an average rating of “Moderate Buy” and an average target price of $116.00.

Key Stories 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

Charles Schwab Price Performance

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

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

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were paid a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. The ex-dividend date was Friday, May 8th. Charles Schwab’s payout ratio is currently 25.40%.

Insider Activity at Charles Schwab

In related news, insider Paul V. Woolway sold 7,942 shares of Charles Schwab stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $98.00, for a total value of $778,316.00. Following the completion of the transaction, the insider owned 29,866 shares in the company, valued at $2,926,868. The trade was a 21.01% decrease in their position. The sale was disclosed in a document filed 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 Charles Schwab stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total value of $4,088,403.00. Following the completion of the transaction, the insider owned 57,972 shares of the company’s stock, valued at approximately $5,739,228. This represents a 41.60% 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 a total of 59,700 shares of company stock worth $5,889,131 in the last 90 days. Corporate insiders own 6.30% of the company’s stock.

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.