5 Stocks to Sell Now According to Billionaire Ken Fisher

3. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 68

The Charles Schwab Corporation (NYSE:SCHW) is a Texas-based financial services company. It is one of the largest banking institutions in the United States. Fisher Asset Management had a stake worth $254,000 in the company at the end of Q1 2022. The firm sold its entire position in Q2 2022.

On July 27, The Charles Schwab Corporation (NYSE:SCHW) declared a 10% increase in its quarterly dividend to $0.22, payable on August 26 to the shareholders of record on August 12. Additionally, the company authorized a $15 billion share repurchase program. The company had $1.8 billion of share repurchases remaining under the previous program. As of August 24, The Charles Schwab Corporation (NYSE:SCHW) has a dividend yield of 1.21%.

On August 19, after meeting with The Charles Schwab Corporation (NYSE:SCHW)’s management, Deutsche Bank analyst Brian Bedell reaffirmed a Buy rating on the shares and raised the price target to $95 from $90. According to Bedell, the company’s cash sorting is consistent with the management’s expectations and believes that it is highly unlikely that it will be any worse than the prior rate tightening cycle.

Here is what Baron Funds had to say about The Charles Schwab Corporation (NYSE:SCHW) in its Q1 2022 investor letter:

“Outperformance of the Fund’s investments in Communication Services, Financials, and Industrials and lower exposure to the lagging Consumer Discretionary sector added the most value. Within Financials, higher exposure to this outperforming sector and gains from online brokerage firm The Charles Schwab Corp (NYSE:SCHW) bolstered relative results. Schwab’s shares gained because of the positive impact higher interest rates will have on its future earnings.”