Charles Schwab (NYSE:SCHW) Issues Quarterly Earnings Results

Key Points

• Charles Schwab reported quarterly EPS of $1.62, beating the consensus estimate of $1.53 by $0.09. Earnings also rose sharply from $1.14 per share a year ago.
• Revenue increased 20.9% year over year, while the company posted a net margin of 37.99% and return on equity of 23.05%, indicating strong profitability for the quarter.
• The stock traded near its highs at $102.92, and analysts remain broadly positive with a Moderate Buy consensus and an average price target of $117.65.

Charles Schwab (NYSE:SCHW - Get Free Report) announced its earnings results on Tuesday. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.53 by $0.09, Briefing.com reports. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. During the same period last year, the business earned $1.14 EPS. The company's revenue for the quarter was up 20.9% compared to the same quarter last year.

Charles Schwab Price Performance

SCHW stock opened at $102.92 on Tuesday. Charles Schwab has a 1 year low of $83.96 and a 1 year high of $107.50. The firm has a market capitalization of $178.99 billion, a P/E ratio of 20.42, a P/E/G ratio of 0.85 and a beta of 0.77. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62. The business's 50-day moving average is $93.07 and its two-hundred day moving average is $95.34.

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Friday, May 8th were given a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio is currently 25.40%.

Insider Buying and Selling

In related news, insider Jonathan S. Beatty sold 2,000 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $100.01, for a total value of $200,020.00. Following the transaction, the insider owned 13,738 shares of the company's stock, valued at $1,373,937.38. This represents a 12.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the company's stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $90.60, for a total value of $228,312.00. Following the transaction, the director directly owned 177,508 shares of the company's stock, valued at approximately $16,082,224.80. This represents a 1.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 6,520 shares of company stock valued at $622,392 in the last quarter. 6.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Newbridge Financial Services Group Inc. grew its position in shares of Charles Schwab by 233.6% during the third quarter. Newbridge Financial Services Group Inc. now owns 357 shares of the financial services provider's stock worth $34,000 after acquiring an additional 250 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in Charles Schwab by 910.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 404 shares of the financial services provider's stock valued at $39,000 after acquiring an additional 364 shares during the last quarter. Wealth Watch Advisors INC purchased a new position in shares of Charles Schwab in the 3rd quarter valued at approximately $45,000. Imprint Wealth LLC acquired a new stake in shares of Charles Schwab during the third quarter worth $46,000. Finally, Wiser Advisor Group LLC acquired a new position in Charles Schwab in the 3rd quarter valued at $51,000. 84.38% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently commented on SCHW shares. Keefe, Bruyette & Woods started coverage on Charles Schwab in a research report on Wednesday, April 8th. They set an "outperform" rating and a $110.00 price target for the company. TD Cowen boosted their target price on Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Charles Schwab in a report on Thursday, June 18th. Jefferies Financial Group dropped their target price on Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a report on Monday, April 6th. Finally, Barclays lowered their price target on shares of Charles Schwab from $127.00 to $122.00 and set an "overweight" rating on the stock in a research report on Thursday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $117.65.

About Charles Schwab

Charles Schwab Corporation NYSE: SCHW is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

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