Banco Santander Boosts Stake in Charles Schwab by 168.5%
Banco Santander S.A. has significantly increased its investment in The Charles Schwab Corporation (NYSE:SCHW) by 168.5% during the first quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the financial institution now holds a total of 43,803 shares of Charles Schwab, valued at approximately $3.43 million following the acquisition of an additional 27,487 shares during the quarter.
Other notable investors have also adjusted their positions in Charles Schwab. Kovitz Investment Group Partners LLC expanded its holdings by an impressive 354.5% in the fourth quarter of 2022, now owning 11,005,881 shares valued at $814.5 million. Similarly, FMR LLC increased its stake by 69.4%, acquiring 9,700,013 shares worth $717.9 million. Marshall Wace LLP saw the largest increase, with a remarkable 742.0% growth, resulting in ownership of 4,181,202 shares valued at $309.5 million. Additionally, PointState Capital LP and Farallon Capital Management LLC entered new positions in Charles Schwab, valued at approximately $237.3 million and $234.5 million, respectively. Currently, institutional investors own 84.38% of the company’s stock.
Stock Performance and Financial Plans
On the market, shares of Charles Schwab opened at $95.57 on Friday. The company maintains a market capitalization of $173.65 billion and has a debt-to-equity ratio of 0.53. Over the past year, the stock has fluctuated between a low of $61.15 and a high of $99.59, with a 50-day moving average price of $91.28.
In a move that indicates confidence in its valuation, Charles Schwab announced a stock buyback plan on July 24, 2023. The company plans to repurchase up to $20 billion in outstanding shares, which constitutes approximately 11.6% of its total shares. Such buyback initiatives are often interpreted as a sign that a company believes its stock is undervalued.
Moreover, Charles Schwab declared a quarterly dividend of $0.27 per share, which will be paid on August 22, 2023. Shareholders of record as of August 8, 2023 will be eligible for this dividend. This represents an annualized dividend of $1.08 and a dividend yield of 1.1%. The company has a payout ratio of 29.03%, reflecting its commitment to returning value to shareholders.
Insider Activity and Analyst Ratings
In other developments, insider Paul V. Woolway recently sold 10,129 shares on June 18, 2023, at an average price of $90.01, totaling approximately $911,711.29. Following this transaction, Woolway holds 39,154 shares valued at around $3.52 million. This sale represents a 20.55% reduction in his ownership stake. Additionally, insider Jonathan M. Craig sold 47,500 shares on May 21, 2023, for a total of $4.2 million. Over the past ninety days, insiders have sold a total of 304,726 shares worth $29.03 million, with insiders currently owning 6.30% of the company’s stock.
Analysts have also been active in assessing Charles Schwab’s prospects. Piper Sandler raised its target price from $80.00 to $92.00 while maintaining a “neutral” rating. The Goldman Sachs Group upgraded its rating from “neutral” to “buy,” setting a target price of $100.00. Citigroup increased its price objective from $105.00 to $110.00, also assigning a “buy” rating. UBS Group and Redburn Atlantic further adjusted their targets, with UBS raising its price goal to $96.00 and Redburn moving from “sell” to “neutral,” increasing its target from $65.00 to $82.00.
Overall, Charles Schwab has garnered a consensus rating of “Moderate Buy” from analysts, with an average target price set at $99.35. The financial services provider, with its extensive range of offerings, continues to be a focal point for both individual and institutional investors.
