Resonant Capital Advisors Increases Stake in Charles Schwab by 8.4%

Resonant Capital Advisors LLC has raised its stake in The Charles Schwab Corporation (NYSE:SCHW) by 8.4% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). Following this acquisition, Resonant Capital Advisors now owns 35,219 shares of the financial services provider, valued at approximately $3.2 million.

Several other institutional investors have also adjusted their positions in Charles Schwab recently. Princeton Global Asset Management LLC established a new stake valued at around $25,000 during the same quarter. Westside Investment Management Inc. significantly increased its holdings by 75.0% in the first quarter, now owning 350 shares worth $27,000. RMG Wealth Management LLC and CBIZ Investment Advisory Services LLC both acquired new positions valued at $27,000 and $30,000, respectively. Currently, institutional investors hold approximately 84.38% of Charles Schwab’s stock.

Analysts Provide Positive Outlook

Recent comments from Wall Street analysts reflect optimism regarding Charles Schwab’s future performance. On October 17, 2023, Keefe, Bruyette & Woods raised their price target for the company from $109.00 to $111.00 while maintaining an “outperform” rating. Similarly, Cowen reiterated a “buy” rating, and Wells Fargo & Company set a target price of $102.00, assigning the stock an “overweight” rating. Citigroup also elevated its price target from $105.00 to $110.00 and rated the stock as a “buy.”

JPMorgan Chase & Co. further increased their target from $119.00 to $121.00, also rating the stock as “overweight.” Overall, one investment analyst has assigned a Strong Buy rating, while sixteen have given a Buy rating, five have rated it Hold, and two have issued a Sell rating. According to MarketBeat.com, the average rating for the stock is “Moderate Buy,” with an average price target of $106.00.

Insider Activity and Stock Performance

In recent insider trading activity, Paul V. Woolway, an insider at Charles Schwab, sold 3,205 shares on October 1, 2023, at an average price of $93.33, totaling $299,122.65. Following this transaction, Woolway retains 34,778 shares valued at approximately $3.25 million. Additionally, General Counsel Peter J. Morgan III sold 50,016 shares on August 27, totaling $4.85 million. Over the past ninety days, insiders have sold a combined 267,128 shares valued at around $26.23 million, indicating that insiders currently hold 6.30% of the company’s stock.

As of the latest trading session on October 20, 2023, Charles Schwab’s stock opened at $94.37. The stock has seen a 52-week low of $65.88 and a high of $99.59. With a market capitalization of $171.30 billion, the company boasts a price-to-earnings (P/E) ratio of 22.10 and a price-to-earnings-growth (PEG) ratio of 0.85.

On October 16, 2023, Charles Schwab announced earnings of $1.31 per share, surpassing analysts’ expectations of $1.25 by $0.06. The firm posted a net margin of 35.93% and a return on equity of 21.26%, with quarterly revenue reaching $6.14 billion, exceeding analyst estimates of $5.93 billion. Year-over-year, revenue increased by 26.6% compared to the same quarter last year.

In addition to strong earnings, Charles Schwab has declared a quarterly dividend of $0.27 per share, to be distributed on November 28, 2023, to shareholders on record as of November 14. This dividend represents an annualized yield of 1.1%, with a dividend payout ratio of 25.29%. The company also revealed a stock repurchase program authorizing up to $20 billion in buybacks, reflecting management’s belief in the stock’s long-term value.

The Charles Schwab Corporation operates as a savings and loan holding company, providing a broad range of financial services both domestically and internationally, including wealth management, securities brokerage, and financial advisory services.