Will Charles Schwab’s Top Institutional Shareholders Sell More After the Downgrade?

In 2012, Charles Schwab Corp.’s (NYSE:SCHW) shares are up 18.92 percent. On Wednesday before the bell, the company’s stock was downgraded by Goldman Sachs (NYSE:GS) to a ”Neutral” from “Buy.” The new rating could affect its share rise and outpacing of the S&P 500 Index (SPX) in the last month.

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But the stock comes with a lot of bearish sentiment as 10 of the 14 analysts who cover SCHW have maintained a “hold” or worse rating on it. Thomson Reuters has the the stock’s 12-month average price target at $14.11; this is slightly above the $13.94 closing price on Tuesday.

From the analysts’ downgrade, will Charles Schwab’s largest shareholders decrease their holdings? 613 institutional firms indicated owning shares of Charles Schwab Corp. (NYSE:SCHW) in Q2 2012. These firms reported owning a total of 957.184 million shares on 06/30/2012. The shares closed at $12.87 on 06/30/2012.

Here are the ten largest positions in Charles Schwab Corp. at the end of June 30th, 2012.

Dodge & Cox held 87,472,818 shares on 06/30/2012 worth $1,131,023,563. This brought the portfolio total to 1.54%.

Primecap Management Co/CA/ held 70,566,106 shares on 06/30/2012 worth $912,419,772. This brought the portfolio total to 1.58%.

SPO Advisory Corp held 48,123,887 shares on 06/30/2012 worth $622,241,874. This brought the portfolio total to 8.9%.

Vanguard Group Inc held 45,049,706 shares on 06/30/2012 worth $582,492,712. This brought the portfolio total to 0.08%.

Capital World Investors held 40,770,000 shares on 06/30/2012 worth $527,156,112. This brought the portfolio total to 0.2%.

State Street Corp held 39,379,325 shares on 06/30/2012 worth $509,174,684. This brought the portfolio total to 0.08%.

Invesco Ltd. held 35,856,529 shares on 06/30/2012 worth $463,624,931. This brought the portfolio total to 0.25%.

Blackrock Institutional Trust Company N.A. held 28,236,706 shares on 06/30/2012 worth $365,100,617. This brought the portfolio total to 0.1%.

FMR LLC held 28,151,069 shares on 06/30/2012 worth $363,993,331. This brought the portfolio total to 0.07%.

Davis Selected Advisers held 19,158,379 shares on 06/30/2012 worth $247,717,846. This brought the portfolio total to 0.58%.

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