Charles Schwab (NYSE:SCHW) Stock Gets Price Target Cut from Truist Financial

Key Points

• Truist Financial cut Charles Schwab’s price target to $125 from $130 but maintained a “buy” rating, implying 28.76% upside from the referenced closing price.
• Analyst sentiment remains broadly positive: Schwab has a “Moderate Buy” consensus rating and an average price target of $119, supported by 17 Buy or Strong Buy ratings.
• Schwab’s latest quarterly results exceeded expectations, with EPS of $1.62 and revenue of $7.07 billion; however, insiders sold roughly $69.6 million of stock in the past quarter, while institutional investors own 84.38% of shares.

Charles Schwab (NYSE:SCHW - Get Free Report) had its price objective dropped by equities researchers at Truist Financial from $130.00 to $125.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a "buy" rating on the financial services provider's stock. Truist Financial's target price indicates a potential upside of 28.76% from the company's previous close.

Several other equities analysts also recently commented on the stock. Citigroup reissued a "market outperform" rating on shares of Charles Schwab in a research note on Wednesday, July 22nd. Compass Point assumed coverage on shares of Charles Schwab in a research note on Monday, August 3rd. They set a "buy" rating and a $135.00 target price on the stock. Bank of America upped their price target on shares of Charles Schwab from $91.00 to $95.00 and gave the stock an "underperform" rating in a report on Monday, October 5th. Argus increased their price target on Charles Schwab from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Thursday, July 23rd. Finally, Raymond James Financial reiterated an "outperform" rating and issued a $145.00 price target on shares of Charles Schwab in a research note on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Charles Schwab currently has a consensus rating of "Moderate Buy" and an average target price of $119.00.

Charles Schwab Stock Performance

NYSE:SCHW opened at $97.08 on Tuesday. The stock's 50-day simple moving average is $105.50 and its 200 day simple moving average is $98.15. The firm has a market capitalization of $167.88 billion, a PE ratio of 17.65, a price-to-earnings-growth ratio of 0.82 and a beta of 0.79. 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 has a twelve month low of $83.96 and a twelve month high of $114.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.56 by $0.06. The firm had revenue of $7.07 billion for the quarter, compared to analysts' expectations of $6.90 billion. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%. During the same quarter in the previous year, the business posted $1.14 earnings per share. The business's revenue for the quarter was up 20.9% on a year-over-year basis. On average, analysts anticipate that Charles Schwab will post 6.46 EPS for the current fiscal year.

Insider Activity at Charles Schwab

In related news, insider Dennis Howard sold 28,000 shares of the firm's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $105.01, for a total transaction of $2,940,280.00. Following the completion of the transaction, the insider directly owned 10,470 shares of the company's stock, valued at $1,099,454.70. This trade represents a 72.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula A. Sneed sold 5,263 shares of the firm's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $107.15, for a total value of $563,930.45. Following the transaction, the director directly owned 91,711 shares of the company's stock, valued at approximately $9,826,833.65. This represents a 5.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 645,582 shares of company stock valued at $69,553,935 in the last quarter. Insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Charles Schwab

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Invesco Ltd. boosted its stake in shares of Charles Schwab by 3.0% in the 4th quarter. Invesco Ltd. now owns 16,425,579 shares of the financial services provider's stock valued at $1,641,080,000 after purchasing an additional 484,558 shares during the last quarter. Bank of New York Mellon Corp raised its stake in Charles Schwab by 22.9% during the first quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider's stock worth $1,518,913,000 after buying an additional 3,009,884 shares during the last quarter. Bank of America Corp DE raised its stake in Charles Schwab by 3.5% during the first quarter. Bank of America Corp DE now owns 15,623,030 shares of the financial services provider's stock worth $1,468,252,000 after buying an additional 530,191 shares during the last quarter. Flossbach Von Storch SE bought a new stake in Charles Schwab during the second quarter valued at $987,930,000. Finally, Janus Henderson Group PLC boosted its position in Charles Schwab by 17.9% during the fourth quarter. Janus Henderson Group PLC now owns 6,862,590 shares of the financial services provider's stock valued at $685,645,000 after acquiring an additional 1,040,041 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Key Charles Schwab News

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

• Positive Sentiment: Analysts expect Schwab’s two key revenue drivers—net interest revenue and asset-management, trading, and related fee income—to benefit from healthy market activity and favorable interest-rate conditions. Robust trading, higher net interest revenue, and stronger asset-management fees could support a third-quarter earnings beat. Charles Schwab's Next Earnings Report on Oct. 15 Could Send the Stock Soaring
• Positive Sentiment: Deutsche Bank raised its price target on SCHW to $130 from $125, signaling greater confidence in the stock’s earnings and valuation potential. Deutsche Bank Adjusts Price Target on Charles Schwab to $130 From $125
• Positive Sentiment: Erste Group Bank increased its fiscal 2027 EPS estimate to $7.96 from $7.85, well above the current-year consensus estimate of $6.46. The revision supports the view that Schwab’s earnings growth may continue beyond the upcoming quarter.
• Neutral Sentiment: Evercore initiated coverage with an “in line” or “hold” rating and a $107 price target. Although the target implies potential appreciation from the referenced $97.08 level, the neutral rating suggests limited conviction in near-term outperformance. Evercore ISI Initiates Charles Schwab at In Line
• Negative Sentiment: Rising operating expenses remain a key risk for the third-quarter report and could offset gains from trading activity, net interest revenue, and asset-management fees. Investors will focus on expense growth and management’s outlook alongside EPS and revenue.

About Charles Schwab

Charles Schwab Corporation NYSE: SCHW is a financial services company that provides brokerage, investment, banking and wealth management services to individual investors, employers, institutions and independent investment advisors. Its offerings include online and mobile trading, securities brokerage, retirement accounts, financial planning, portfolio management, banking products, research and access to mutual funds and exchange-traded funds.

The company operates through businesses including Schwab Brokerage, Schwab Wealth Advisory, Schwab Asset Management and Charles Schwab Bank.

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