Bullish indicating open at $55-$60, IPO prices at $37
WESTLAKE, Texas - The Charles Schwab Corporation (NYSE: NYSE:SCHW), a major financial services firm currently valued at $149.65 billion, has finalized a significant secondary offering of its common stock previously held by TD Group US Holdings LLC, an affiliate of The Toronto-Dominion Bank (TSX:TD). The transaction involved the sale of 165,443,530 shares at a price of $79.25 per share, resulting in an aggregate purchase amount of $13.1 billion. According to InvestingPro data, the stock has shown remarkable strength with a 35% gain over the past six months and currently trades near its 52-week high of $84.50.
This sale marks TD’s exit from its position in Charles Schwab, following a separate $1.5 billion share repurchase by the company from TD. Charles Schwab did not receive any proceeds from the secondary offering, as the shares were sold by TD. The company maintains a strong financial position with $19.61 billion in revenue and has demonstrated commitment to shareholder returns through 37 consecutive years of dividend payments.
The offering was conducted by TD Securities and Goldman Sachs & Co. LLC, with Piper Sandler & Co. serving as the financial and capital markets advisor to Charles Schwab. In line with the completion of this offering, Brian M. Levitt and Bharat B. Masrani have stepped down from their roles on Charles Schwab’s board of directors.
The sale of these securities was registered with the Securities and Exchange Commission (SEC), and the registration statement, including a prospectus and prospectus supplement, was made available to the public via the SEC’s EDGAR system. Interested parties could also obtain these documents upon request from the underwriters involved in the offering.
This announcement does not serve as an offer to sell or a solicitation of an offer to buy any securities. The sale of securities was not permitted in any state or jurisdiction where such offer, solicitation, or sale would be illegal prior to registration or qualification under the securities laws of the said state or jurisdiction.
The press release also included forward-looking statements regarding the company’s plans and potential future financial performance, which are subject to various risks and uncertainties that could cause actual results to differ materially. The company has not committed to updating any forward-looking statements that may be revised due to new information or future events.
Charles Schwab is known for its comprehensive financial services, including wealth management, brokerage, banking, asset management, custody, and financial advisory services. The company boasts millions of active accounts across its brokerage, banking, and workplace plan participant accounts, managing over $10 trillion in client assets. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with 12 analysts recently revising their earnings expectations upward. Get access to the full Charles Schwab Pro Research Report and discover detailed insights about the company’s valuation, growth prospects, and financial health metrics.
The information for this article is based on a press release statement from The Charles Schwab Corporation.
In other recent news, Charles Schwab Corp (BVMF:SCHW34). is maintaining its Outperform rating, as confirmed by Keefe, Bruyette & Woods, while Truist Securities has updated its financial model for the company, leading to an increased price target. This comes following TD Bank’s decision to sell its remaining 10.1% stake in Charles Schwab, with Schwab agreeing to buy back $1.5 billion worth of shares directly from TD. This strategic move by Schwab is part of a broader plan to continue buybacks throughout 2025, as the company aims to meet its key financial objectives.
In addition, Wolfe Research and Jefferies have reiterated their positive outlook on Charles Schwab, with Wolfe Research citing a 23% upside potential to their $100 price target and Jefferies maintaining a price target set at $95.00. These developments follow the news of Toronto Dominion Bank (NYSE:TD)’s plans to initiate a stock buyback following the sale of its equity investment in Charles Schwab.
These recent developments in Charles Schwab’s financial strategy and TD Bank’s strategic review to optimize capital allocation have been met with positive reactions from various analyst firms.
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