Alyeska Investment Group Acquires $144 Million Stake in Charles Schwab

Alyeska Investment Group L.P. has made a significant move by acquiring a new stake in The Charles Schwab Corporation, purchasing 1,842,082 shares valued at approximately $144.2 million. This acquisition was revealed in the investment firm’s recent Form 13F filing with the Securities and Exchange Commission (SEC). Following this transaction, Alyeska now holds about 0.10% of Charles Schwab’s shares.

Several other institutional investors have also adjusted their positions in Charles Schwab recently. For instance, Cary Street Partners Financial LLC entered the scene in the fourth quarter with a stake valued at $1.5 million. Meanwhile, Independent Advisor Alliance has increased its position by 13.8% in the first quarter, now owning 39,103 shares valued at $3.1 million after acquiring an additional 4,754 shares. Similarly, Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings by 6.2%, bringing its total to 1,181,563 shares, valued at approximately $92.5 million.

Graham Capital Management L.P. made a notable increase of 248.3% in the fourth quarter, now owning 112,376 shares worth $8.3 million. World Investment Advisors has also expanded its position by 7.6% in the first quarter, now holding 163,007 shares valued at $12.8 million. Overall, institutional investors and hedge funds collectively own 84.38% of Charles Schwab.

Insider Transactions and Financial Performance

In related developments, insider Paul V. Woolway sold 10,129 shares on June 18, resulting in a transaction valued at $911,711.29 at an average price of $90.01. This sale reduced his stake in the company by 20.55%. Another insider, Jonathan S. Beatty, sold 6,144 shares on August 28 for a total of $594,800.64 at an average price of $96.81, leading to a 34.01% decrease in his ownership.

Over the past 90 days, insiders have sold a total of 295,009 shares, amounting to $28.7 million. Corporate insiders currently hold 6.30% of Charles Schwab’s stock.

Charles Schwab’s stock opened at $95.97 on Wednesday, showing a modest increase of 0.1%. The financial services provider has a market capitalization of $174.21 billion and a price-to-earnings (P/E) ratio of 25.80. The company reported quarterly earnings on July 18, revealing an earnings per share (EPS) of $1.14, exceeding analysts’ expectations of $1.10. The company’s revenue for the quarter reached $5.85 billion, surpassing the consensus estimate of $5.64 billion.

Stock Buyback and Dividend Announcements

On July 24, Charles Schwab’s Board of Directors announced a stock buyback plan allowing the repurchase of shares worth $20 billion. This plan enables the company to buy back up to 11.6% of its stock through open market purchases, which often indicates that the board believes the stock is undervalued.

In addition, the firm declared a quarterly dividend of $0.27 per share, which was paid on August 22 to shareholders of record as of August 8. This amounts to an annualized dividend of $1.08, reflecting a dividend yield of 1.1%. The dividend payout ratio is currently 29.03%.

The Charles Schwab Corporation operates as a savings and loan holding company, providing a wide range of financial services including wealth management, securities brokerage, and asset management. As a key player in the financial services sector, recent movements by investors and insiders suggest a dynamic landscape surrounding the company.