Bullish indicating open at $55-$60, IPO prices at $37
Charles R. Schwab, Co-Chairman of Schwab Charles Corp (NYSE:SCHW), recently executed significant stock sales, according to a Form 4 filing with the SEC. On February 21, Schwab sold a total of 124,000 shares of common stock, with sale prices ranging from $81.9035 to $82.36 per share. The total value of these transactions amounted to approximately $10.2 million. Following these transactions, Schwab holds 60,161,358 shares indirectly through a trust. The sales occurred as the $144.9 billion financial services giant trades slightly below its InvestingPro Fair Value, with the stock up 7.1% year-to-date.
Additionally, on February 24, Schwab transferred 87,500 shares as gifts, which were recorded at a price of $0. These transactions did not impact the overall financial position but adjusted the ownership structure, with 60,098,858 shares remaining in the trust and additional shares held by a spouse acting as trustee. InvestingPro data shows the company maintains strong financial health with a "GOOD" overall score, having sustained dividend payments for 37 consecutive years.
Investors may view these transactions as part of routine portfolio management by Schwab, who continues to maintain a substantial equity stake in the company. Notably, 12 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting confidence in the company’s near-term prospects. For deeper insights into SCHW’s valuation and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, The Charles Schwab Corporation reported a significant increase in core net new assets for January 2025, rising over 75% to $30.6 billion. Total (EPA:TTEF) client assets reached $10.33 trillion, marking a 21% increase year-over-year. Schwab also saw an 18% rise in new brokerage accounts, with 433,000 new accounts opened. Additionally, Charles Schwab completed a $13.1 billion stock sale, marking the exit of TD Group US Holdings LLC from its position in the company. Keefe, Bruyette & Woods maintained an Outperform rating for Charles Schwab, with a price target of $93, following TD Bank’s announcement to sell its remaining 10.1% stake. Truist Securities also increased its price target for Schwab to $91, maintaining a Buy rating. The company has engaged in a $1.5 billion buyback as part of TD Bank’s stake sale, representing about 1% of Schwab’s market capitalization. These developments highlight Charles Schwab’s strategic financial maneuvers and ongoing investor interest.
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