Charles Schwab Increases Stake in Hubbell Inc by 0.7%

Charles Schwab Investment Management Inc. has raised its stake in Hubbell Inc (NYSE:HUBB) by 0.7% during the second quarter of 2023. According to the firm’s latest Form 13F filing with the Securities and Exchange Commission, the institutional investor now holds 322,081 shares of the industrial products company after acquiring an additional 2,091 shares in the quarter. This increased investment puts Charles Schwab’s total ownership at approximately 0.61% of Hubbell, valued at around $131.54 million.

Several other institutional investors have also adjusted their positions in Hubbell recently. For instance, McKinley Carter Wealth Services Inc. boosted its holdings by 16.7% in the same period, bringing its total to 19,829 shares, worth about $8.1 million following the purchase of 2,843 additional shares. Other firms, including Belpointe Asset Management LLC and Venturi Wealth Management LLC, made new investments valued at approximately $320,000 and $490,000, respectively. Overall, institutional investors now control 88.16% of Hubbell’s stock.

Recent Insider Transactions

In addition to institutional activity, insider transactions at Hubbell have also been noteworthy. On November 17, 2023, Director John F. Malloy purchased 435 shares at an average price of $429.24, amounting to a total transaction of $186,719.40. After this acquisition, Malloy’s holdings increased to 19,085 shares, valued at approximately $8.19 million. This transaction reflects a 2.33% rise in his ownership position.

Conversely, insider Alyssa R. Flynn sold 2,011 shares on November 3, 2023, at an average price of $470.32, resulting in a total value of $945,813.52. Following this sale, Flynn’s ownership decreased by 38.28%, leaving her with 3,243 shares worth around $1.53 million. Company insiders collectively own 0.66% of Hubbell’s stock.

Market Performance and Earnings Report

As of Friday, the stock was trading at $428.58, reflecting a 0.3% decline. Hubbell boasts a market capitalization of $22.78 billion, with a price-to-earnings ratio of 26.59 and a debt-to-equity ratio of 0.28. The company has experienced a one-year range in stock price from $299.42 to $484.26.

On October 28, 2023, Hubbell reported its quarterly earnings, showing a profit of $5.17 per share, which exceeded analysts’ expectations of $4.98 by $0.19. The company’s revenue for the quarter was $1.50 billion, slightly below the anticipated $1.54 billion. The net margin stood at 15.24%, and return on equity was recorded at 27.68%. Year-over-year revenue increased by 4.1%, compared to $4.49 earnings per share during the same period last year. For fiscal year 2025, Hubbell has set guidance at $18.10 to $18.30 EPS, with analysts expecting $17.63 for the current year.

Dividend Announcement and Analyst Ratings

Hubbell has also declared a quarterly dividend of $1.42, scheduled for payment on December 15, 2023, to stockholders of record as of November 28, 2023. This increase from the previous quarterly dividend of $1.32 represents an annualized dividend of $5.68 and a yield of 1.3%. The current dividend payout ratio stands at 35.24%.

Equities analysts have recently provided their insights on Hubbell. Weiss Ratings maintained a “buy (B-)” rating on the stock, while UBS Group initiated coverage with a “neutral” rating and a price target of $450.00. Stephens reaffirmed an “overweight” rating with a target price of $500.00. Additionally, Wells Fargo & Company raised their price objective from $490.00 to $500.00, giving Hubbell an “overweight” rating. Currently, four analysts have rated the stock as a Buy, while three have issued a Hold rating, leading to an average rating of “Moderate Buy” with a target price of $474.00 according to data from MarketBeat.

As Hubbell continues to navigate its financial landscape, the recent movements by institutional investors and insiders, coupled with its robust earnings report and dividend increase, position it as a noteworthy player in the industrial products sector.