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Charles Schwab sees significant institutional ownership at 70%

EditorAmbhini Aishwarya
Published 11/22/2023, 07:59 AM
© Reuters.

Institutional investors hold a substantial 70% share in The Charles Schwab Corporation (NYSE:SCHW), placing them at the forefront of influencing the firm's stock price movements. Notably, the top 19 shareholders command over half of the company's equity, with The Toronto-Dominion Bank being the largest at 12%. Following are stakeholders with shares of 6.8% and 5.2%.

Insider transactions reveal that these individuals own Charles Schwab shares valued at approximately $1.5 billion, aligning their interests closely with those of other shareholders. This alignment is important despite the governance challenges it might present.

The company also enjoys a diverse shareholder base. Individual investors possess a considerable 12% stake in the company, which grants them potential sway over corporate decisions. Private entities contribute 4.3% to the investment mix, while public companies hold another significant portion amounting to 12%.

InvestingPro Insights

The Charles Schwab Corporation (NYSE:SCHW), with a substantial institutional ownership, presents a unique investment profile that is further illuminated by insights from InvestingPro. Real-time data shows a market capitalization of $102.06 billion and a P/E ratio of 18.36, reflecting investor sentiment and market valuation. The adjusted P/E ratio for the last twelve months as of Q3 2023 stands at 16.86, suggesting a potentially more attractive valuation compared to the unadjusted figure.

InvestingPro Tips highlight that despite the challenges indicated by analysts, including downward revisions of earnings and concerns over short-term obligations exceeding liquid assets, Charles Schwab remains a prominent player in the Capital Markets industry. A notable point for investors is the company's track record of maintaining dividend payments for 35 consecutive years, with a dividend yield of 1.79% as of the end of November 2023. This is particularly relevant for income-focused investors.

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For those seeking a more comprehensive analysis, InvestingPro offers additional tips, with a total of 9 listed for Charles Schwab. These tips delve into various aspects of the company's financial health and market performance, providing a deeper understanding of its investment potential. The InvestingPro subscription, now available at a special Black Friday sale with discounts of up to 55%, is an invaluable resource for investors looking to gain an edge in their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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