Piper Sandler Has Lowered Expectations for Charles Schwab (NYSE:SCHW) Stock Price

Key Points

• Piper Sandler cut Charles Schwab’s price target from $118 to $100 while maintaining a “neutral” rating, implying roughly 2.94% upside from the prior close.
• Analyst sentiment remains broadly positive, with MarketBeat reporting a consensus “Moderate Buy” rating and an average price target of $119.37, despite mixed recent rating changes.
• Charles Schwab reported quarterly EPS of $1.62 and revenue of $7.07 billion, exceeding estimates, while insiders sold approximately $69.8 million of stock over the past three months.

Charles Schwab (NYSE:SCHW - Get Free Report) had its target price cut by equities research analysts at Piper Sandler from $118.00 to $100.00 in a report released on Friday, Benzinga reports. The firm presently has a "neutral" rating on the financial services provider's stock. Piper Sandler's price target would suggest a potential upside of 2.94% from the company's previous close.

SCHW has been the topic of a number of other research reports. Wolfe Research reissued an "outperform" rating and issued a $127.00 target price on shares of Charles Schwab in a research note on Tuesday, July 21st. BMO Capital Markets lowered Charles Schwab from an "outperform" rating to a "market perform" rating and set a $105.00 price objective on the stock. in a research report on Monday, July 20th. Morgan Stanley raised their price objective on Charles Schwab from $133.00 to $136.00 and gave the company an "overweight" rating in a report on Monday, July 27th. Wells Fargo & Company set a $105.00 price target on shares of Charles Schwab and gave the stock an "equal weight" rating in a research note on Thursday. Finally, Zacks Research downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 14th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $119.37.

Charles Schwab Price Performance

SCHW traded down $1.23 on Friday, reaching $97.14. The company had a trading volume of 739,757 shares, compared to its average volume of 10,108,007. The business has a 50 day simple moving average of $106.60 and a 200 day simple moving average of $98.03. The company has a market cap of $167.99 billion, a price-to-earnings ratio of 17.65, a P/E/G ratio of 0.85 and a beta of 0.79. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.64 and a current ratio of 0.64. Charles Schwab has a 52-week low of $83.96 and a 52-week high of $114.53.

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

Insider Transactions at Charles Schwab

In other news, General Counsel Peter Morgan, III sold 6,952 shares of the firm's stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $102.03, for a total value of $709,312.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Walter Bettinger sold 192,488 shares of the company's stock in a transaction on Monday, July 27th. The stock was sold at an average price of $103.90, for a total value of $19,999,503.20. Following the completion of the sale, the chairman directly owned 529,346 shares in the company, valued at approximately $54,999,049.40. The trade was a 26.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 647,582 shares of company stock worth $69,753,955. 6.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SCHW. Franklin Resources Inc. increased its stake in shares of Charles Schwab by 0.3% during the fourth quarter. Franklin Resources Inc. now owns 30,184,369 shares of the financial services provider's stock valued at $3,015,720,000 after purchasing an additional 78,020 shares in the last quarter. Invesco Ltd. boosted its position 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 worth $1,641,080,000 after purchasing an additional 484,558 shares in the last quarter. Bank of New York Mellon Corp boosted its position in shares of Charles Schwab by 22.9% in the 1st 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 purchasing an additional 3,009,884 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Charles Schwab by 3.5% in the 1st 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. Finally, Flossbach Von Storch SE purchased a new stake in shares of Charles Schwab in the 2nd quarter worth approximately $987,930,000. 84.38% of the stock is currently owned by institutional investors.

Charles Schwab Company Profile

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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