Charles Schwab shares bought by CEO, Baron Capital - CNBC
Reuters
Published Mar 14, 2023 08:40AM ET
Updated Mar 14, 2023 02:33PM ET
(Reuters) -Charles Schwab chief executive officer Walt Bettinger said he bought 50,000 shares of the company while billionaire investor Ron Baron said he "modestly increased" his position in the stock, CNBC reported on Tuesday, as investors aim to buy a dip in shares amid a meltdown in financial stocks.
Shares of the broker jumped 12% to $58.1 in afternoon trading, recouping losses a day after falling 12% to their lowest since November 2020.
Financial stocks have largely borne the brunt of a crippling sell-off which began last week after regulators shut down startup-focused bank SVB Financial Group, triggering worries of a contagion that rippled across financial markets. Signature Bank (NASDAQ:SBNY) was also consequently shut down by regulators.
A few investors are turning bargain-hunters to cash in on stocks trading at very attractive prices. Baron, the 79-year-old founder of Baron Capital, did not disclose how much stock of Charles Schwab (NYSE:SCHW) he purchased, according to the report.
Earlier on Tuesday, hedge fund Citadel said it bought a 5.3% stake in Western Alliance (NYSE:WAL) Bancorporation.
Texas-based Charles Schwab on Monday reported a 28% decline in average margin balances and a 4% fall in total client assets for February, piling more pressure on the financial services firm amid fears over the fallout from Silicon Valley Bank's collapse.
However, the broker said it has "access to significant liquidity" including an estimated $100 billion of cash flow with 80% of its deposits within the FDIC insurance limits.
CEO Bettinger said Schwab clients brought in almost $42 billion in net new assets in February, and have averaged about $2 billion a day month-to-date, a separate report said.
Baron Capital declined to comment while Charles Schwab did not immediately respond to a Reuters request for comment.
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Written By: Reuters
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