Raab & Moskowitz Asset Management LLC Acquires Stake in The Charles Schwab Co. (NYSE:SCHW)

Raab & Moskowitz Asset Management LLC has recently established a new position in shares of The Charles Schwab Co. (NYSE:SCHW) during the fourth quarter, as revealed in their latest filing with the Securities & Exchange Commission. The firm has acquired 8,201 shares of this financial services company, which are estimated to be worth around $607,000.

Several other hedge funds have also adjusted their positions in Charles Schwab. For instance, Franklin Resources Inc. increased its holdings by 15.0% in the third quarter, resulting in ownership of 24,261,234 shares valued at approximately $1.64 billion after acquiring an additional 3,157,923 shares. Additionally, Massachusetts Financial Services Co. MA raised its stake by 6.3% in the same quarter, bringing its total to 28,679,305 shares worth about $1.86 billion after purchasing 1,711,312 more shares. AustralianSuper Pty Ltd made a significant jump of 2,617.6%, owning 1,707,771 shares valued at $110.68 million after adding 1,644,931 shares during the period. Moreover, KBC Group NV raised its holdings by 186.7% during the fourth quarter, now owning 2,138,033 shares valued at approximately $158.24 million after buying 1,392,255 shares. Two Sigma Advisers LP also entered a new stake in Charles Schwab worth about $86.85 million during the third quarter. Collectively, hedge funds and other institutional investors hold approximately 84.38% of the company's shares.

Insider Transactions at Charles Schwab

In related news on insider activity, Director Arun Sarin sold 8,548 shares of Charles Schwab stock on January 23rd at an average price of $81.82, yielding a total value of around $699,397. Following this sale, his direct ownership in the company has decreased to 18,617 shares, worth about $1.52 million. This represents a significant decline of 31.47% in his position. The transaction has been officially recorded and is available for public viewing via the Securities & Exchange Commission. Moreover, on January 22nd, General Counsel Peter J. Morgan III sold 14,643 shares at an average price of $80.70, amounting to a total transaction value of approximately $1.18 million. Over the past 90 days, insiders have sold a total of 47,514 shares valued at $3.86 million. Currently, insiders own about 6.60% of the shares.

Wall Street Analysts Predict Growth

The Charles Schwab Co. has been featured in multiple recent research reports by analysts. Truist Financial recently raised their target price from $90.00 to $91.00, giving Schwab a "buy" rating. Piper Sandler also increased their target from $65.00 to $70.00 while assigning a "neutral" rating. Jefferies Financial Group raised its price target from $84.00 to $94.00 with a similar "buy" rating. On the other hand, Deutsche Bank Aktiengesellschaft boosted its price objective from $98.00 to $105.00, maintaining a "buy" rating. Keefe, Bruyette & Woods increased their target from $81.00 to $93.00 and labeled it as an "outperform" stock. In total, while two analysts rated the stock a sell, seven maintain a hold rating, and nine have attributed a buy rating. According to MarketBeat.com, Charles Schwab has an average rating of "Hold" and an average target price of $84.56.

Performance Overview of Charles Schwab Stock

On Thursday, SCHW opened its trading at $82.37. The company has a debt-to-equity ratio of 0.59 and a quick ratio of 0.47. The market capitalization stands at $146.59 billion with a price-to-earnings ratio of 27.55 and a PEG ratio of 1.02. Over the past year, the stock has had a low of $61.01 and a high of $84.50. Its fifty-day moving average is noted at $78.04 while the two-hundred day moving average is at $72.11.

Recently, on January 21st, Charles Schwab announced its quarterly earnings, reporting earnings per share (EPS) of $1.01, surpassing the consensus estimate of $0.90 by $0.11. The company marked a net margin of 30.31% with a return on equity of 18.20%. Revenue for the quarter reached $5.33 billion, exceeding analyst expectations of $5.19 billion. The revenue increased by 19.5% compared to the previous year's same quarter, during which the firm recorded an EPS of $0.68. Analysts predict an EPS of 4.18 for the ongoing fiscal year.

Charles Schwab Updates Dividend Policy

The company recently announced an upcoming quarterly dividend, scheduled to be paid on February 28th. Investors who are on record by February 14th will receive a dividend of $0.27 per share, which represents an increase from the previous dividend of $0.25. This results in an annualized dividend of $1.08, leading to a dividend yield of 1.31%. The ex-dividend date is confirmed for February 14th. Presently, the payout ratio for Charles Schwab stands at 33.44%.

Overview of Charles Schwab's Business Model

Charles Schwab Corporation, along with its subsidiaries, operates as a holding company that provides a range of financial services. These services include wealth management, securities brokerage, banking, asset management, custody, and financial advisory services both in the United States and internationally. The company organizes its services into two main segments: Investor Services and Advisor Services.

Acquisition, Investment, Earnings