Universal Beteiligungs und Servicegesellschaft mbH has decreased its stake in The Charles Schwab Corporation (NYSE: SCHW) by 1.6%, as reported in its recent 13F filing with the Securities and Exchange Commission (SEC). The firm now holds a total of 1,162,782 shares after selling 18,781 shares during the second quarter. As of the latest filing, Universal Beteiligungs’ stake in Charles Schwab is valued at approximately $106.1 million, representing around 0.06% of the company.
Several other institutional investors have also adjusted their positions in Charles Schwab. Notably, Brighton Jones LLC increased its holdings by an impressive 380.5% in the fourth quarter, now owning 24,240 shares valued at $1.8 million. Additionally, Jackson Creek Investment Advisors LLC acquired a new stake in the company during the first quarter, worth about $613,000. Private Advisor Group LLC and AMG National Trust Bank also raised their stakes, reflecting a broader trend of institutional investment in the financial services provider.
Analyst Ratings and Stock Performance
Recent analyses from various research firms indicate a positive outlook for Charles Schwab. The Goldman Sachs Group reaffirmed a “buy” rating with a target price of $114.00. Similarly, Keefe, Bruyette & Woods raised their target to $111.00 while maintaining an “outperform” rating. Other firms, including BMO Capital Markets and Deutsche Bank Aktiengesellschaft, have also expressed bullish sentiments with target prices of $110.00 and $120.00, respectively.
As for stock performance, shares of Charles Schwab opened at $94.37 on the latest trading day, reflecting a decline of 1.0%. The stock’s market capitalization stands at $167.7 billion, with a PE ratio of 22.10 and a 12-month trading range between $65.88 and $99.59. Analysts project an average target price of $106.45, indicating a consensus rating of “Moderate Buy.”
Quarterly Earnings and Dividend Announcement
In its most recent earnings report, released on October 16, 2024, Charles Schwab reported earnings per share (EPS) of $1.31, exceeding the consensus estimate of $1.25 by $0.06. The company generated revenues of $6.38 billion, surpassing analyst expectations of $5.93 billion. Year-over-year, revenue growth reached 26.6%, showcasing the firm’s strong financial performance. Analysts predict that Charles Schwab will report $4.22 EPS for the current year.
Moreover, Charles Schwab has declared a quarterly dividend of $0.27 per share, set to be paid on November 28, 2024. Shareholders of record on November 14, 2024, will receive this dividend, which represents an annualized yield of 1.1%. The company maintains a payout ratio of 25.3%.
In a strategic move, Charles Schwab’s Board of Directors has initiated a stock repurchase program allowing for the repurchase of up to $20 billion in shares. This initiative reflects the board’s belief that the company’s stock is undervalued.
Insider trading activity has also been notable. On November 12, 2024, insider Jonathan S. Beatty sold 3,072 shares at an average price of $98.00, while Paul V. Woolway sold 3,205 shares on October 1 at an average price of $93.33. These transactions indicate a decrease in insider ownership positions, which may influence market perceptions.
Charles Schwab operates as a savings and loan holding company, offering a diverse range of services including wealth management, securities brokerage, and financial advisory services, both in the United States and internationally. As the market evolves, the company’s performance and strategic decisions will continue to attract attention from investors and analysts alike.
