The Charles Schwab Corporation $SCHW Stock Holdings Boosted by Kinsale Capital Group Inc.

Key Points

• Kinsale Capital increased its Charles Schwab stake by 16.2% in the third quarter, to 194,419 shares valued at about $19 million. Institutional investors and hedge funds collectively own 84.38% of Schwab.
• Schwab reported quarterly EPS of $1.69, topping estimates of $1.66, while revenue of $7.17 billion slightly missed forecasts. Revenue rose 16.9% year over year.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $119.91. Schwab also announced a quarterly dividend of $0.32 per share, equivalent to a 1.4% annualized yield.

Kinsale Capital Group Inc. lifted its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 16.2% in the third quarter, according to its most recent filing with the SEC. The firm owned 194,419 shares of the financial services provider's stock after acquiring an additional 27,049 shares during the period. Charles Schwab makes up about 2.5% of Kinsale Capital Group Inc.'s investment portfolio, making the stock its 9th biggest position. Kinsale Capital Group Inc.'s holdings in Charles Schwab were worth $19,002,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. Compass Financial Management LLC bought a new stake in Charles Schwab in the second quarter valued at about $27,000. Scarborough Advisors LLC bought a new position in Charles Schwab during the first quarter worth about $29,000. Main Street Group LTD bought a new position in Charles Schwab during the first quarter worth about $33,000. Mascoma Wealth Management LLC lifted its stake in Charles Schwab by 71.6% during the third quarter. Mascoma Wealth Management LLC now owns 374 shares of the financial services provider's stock worth $37,000 after purchasing an additional 156 shares during the period. Finally, GK Wealth Management LLC acquired a new stake in Charles Schwab during the third quarter valued at approximately $41,000. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Key Charles Schwab News

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab lowered account minimums for clients seeking IPO shares, potentially making IPO access available to more customers and helping attract or retain brokerage accounts. Read More.
• Positive Sentiment: The company expanded Schwab Crypto trading to Solana, Avalanche and Chainlink, beyond Bitcoin and Ether. Broader product choice and competitive trading fees could attract customers and increase engagement, though the financial contribution is not yet clear. Read More.
• Neutral Sentiment: Schwab’s Trading Activity Index rose to 61.94 in October from 58.92 in September, indicating increased retail trading activity and more interest in individual stocks. This may support transaction activity, but the index alone does not show the effect on revenue. Read More.
• Negative Sentiment: Schwab cited accounting uncertainty around client cryptocurrency holdings, which could create financial-reporting and regulatory risks as its crypto business grows. Read More.

Charles Schwab Trading Up 1.4%

Shares of SCHW stock opened at $92.78 on Tuesday. The Charles Schwab Corporation has a 12-month low of $83.96 and a 12-month high of $114.53. The company has a market capitalization of $160.45 billion, a P/E ratio of 15.83, a P/E/G ratio of 0.83 and a beta of 0.77. The firm has a 50-day moving average price of $98.16 and a 200 day moving average price of $97.35. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Thursday, October 15th. The financial services provider reported $1.69 EPS for the quarter, beating analysts' consensus estimates of $1.66 by $0.03. The firm had revenue of $7.17 billion for the quarter, compared to analyst estimates of $7.18 billion. Charles Schwab had a net margin of 39.33% and a return on equity of 25.79%. The company's revenue for the quarter was up 16.9% compared to the same quarter last year. During the same period in the previous year, the business earned $1.31 earnings per share. Research analysts forecast that The Charles Schwab Corporation will post 6.41 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be paid a $0.32 dividend. The ex-dividend date is Friday, November 13th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.4%. Charles Schwab's payout ratio is 21.84%.

Analysts Set New Price Targets

SCHW has been the topic of several analyst reports. Wells Fargo & Company lowered their price objective on Charles Schwab from $105.00 to $103.00 and set an "equal weight" rating on the stock in a research note on Friday, October 16th. Keefe, Bruyette & Woods restated an "outperform" rating and set a $111.00 target price (up from $109.00) on shares of Charles Schwab in a research report on Friday, October 16th. Argus raised their target price on Charles Schwab from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Thursday, July 23rd. BMO Capital Markets decreased their price target on Charles Schwab from $105.00 to $97.00 and set a "market perform" rating on the stock in a research note on Monday, October 19th. Finally, Bank of America upped their price target on Charles Schwab from $91.00 to $95.00 and gave the company an "underperform" rating in a research report on Monday, October 5th. Eighteen investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Charles Schwab currently has a consensus rating of "Moderate Buy" and a consensus target price of $119.91.

Insider Activity

In other news, Chairman Walter Bettinger sold 176,210 shares of the business's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $113.49, for a total value of $19,998,072.90. Following the transaction, the chairman directly owned 610,360 shares of the company's stock, valued at $69,269,756.40. The trade was a 22.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jonathan Beatty sold 1,000 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $111.33, for a total value of $111,330.00. Following the sale, the insider owned 10,738 shares in the company, valued at approximately $1,195,461.54. This trade represents a 8.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 253,796 shares of company stock worth $28,601,556. Insiders own 6.30% of the company's stock.

About Charles Schwab

The Charles Schwab Corporation is a financial services company that provides brokerage, banking, wealth management, and investment services. Its offerings include brokerage accounts, trading and research tools, retirement products, banking services, and investment advice for individuals, as well as services for independent financial advisors, employers, and institutions.

Founded in 1971 by Charles R. Schwab, the company helped popularize discount brokerage services. It expanded its brokerage business with the 2020 acquisition of TD Ameritrade, whose trading platform and services became part of Schwab.

Based in Westlake, Texas, Schwab primarily serves clients in the United States and also has an international presence.

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