Keefe Bruyette says TD’s Schwab stake sale ‘not telegraphed,’ but ‘unsurprising’

After TD Bank (TD) announced that it has sold 40.5M shares of common stock of Charles Schwab (SCHW), reducing TD’s ownership interest in Schwab from 12.3% to 10.1%, Keefe Bruyette said the share sale was “not previously telegraphed but is unsurprising” in context of it being used to help offset a $2.6B provision that TD also announced last night as the bank continues to pursue a global resolution of the civil and criminal investigations into its U.S. Bank Secrecy Act anti-money laundering program by its U.S. prudential regulators. The firm, which also noted that TD said it has no intention to divest additional shares, has an Outperform rating and $80 price target on Charles Schwab.