Charles Schwab (NYSE:SCHW) Price Target Cut to $135.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley trimmed its price target on Charles Schwab to $135 (from $148) while maintaining an overweight rating, a target that implies about a 38.7% upside from the prior close.
• Across the Street the consensus is a Moderate Buy with a consensus price target of $114.50, as multiple firms have recently lowered targets and the analyst mix includes mostly Buy ratings (1 Strong Buy, 17 Buy, 4 Hold, 1 Sell).
• Schwab reported a quarter-beat with $1.39 EPS (vs. $1.32 est.) and $6.34B revenue (up 18.9% year-over-year) and provided FY2026 guidance of 5.70–5.80 EPS, signaling solid fundamentals despite mixed analyst target movements.

Charles Schwab (NYSE:SCHW - Get Free Report) had its target price reduced by research analysts at Morgan Stanley from $148.00 to $135.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "overweight" rating on the financial services provider's stock. Morgan Stanley's target price points to a potential upside of 38.70% from the stock's previous close.

A number of other research analysts have also issued reports on the stock. Keefe, Bruyette & Woods initiated coverage on shares of Charles Schwab in a research report on Wednesday. They set an "outperform" rating and a $110.00 target price on the stock. Jefferies Financial Group decreased their target price on shares of Charles Schwab from $122.00 to $118.00 and set a "buy" rating on the stock in a research report on Monday. Citigroup restated a "market outperform" rating on shares of Charles Schwab in a research report on Monday, January 12th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $131.00 target price on shares of Charles Schwab in a research report on Thursday, January 22nd. Finally, Barclays decreased their target price on shares of Charles Schwab from $126.00 to $117.00 and set an "overweight" rating on the stock in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Charles Schwab currently has a consensus rating of "Moderate Buy" and a consensus price target of $114.50.

Charles Schwab Stock Performance

Shares of NYSE:SCHW opened at $97.34 on Friday. The company's 50 day moving average price is $95.79 and its two-hundred day moving average price is $96.31. Charles Schwab has a 12-month low of $71.23 and a 12-month high of $107.50. The firm has a market cap of $169.18 billion, a PE ratio of 20.89, a PEG ratio of 0.80 and a beta of 0.90. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.52.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Wednesday, January 21st. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.32 by $0.07. Charles Schwab had a net margin of 37.01% and a return on equity of 21.97%. The firm had revenue of $6.34 billion for the quarter, compared to analyst estimates of $6.19 billion. During the same quarter in the prior year, the business posted $1.01 EPS. The business's revenue was up 18.9% compared to the same quarter last year. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Equities research analysts predict that Charles Schwab will post 4.22 earnings per share for the current year.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, Director Christopher V. Dodds sold 11,825 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $104.55, for a total value of $1,236,303.75. Following the sale, the director owned 449,406 shares in the company, valued at $46,985,397.30. This trade represents a 2.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Nigel J. Murtagh sold 7,203 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $94.61, for a total transaction of $681,475.83. Following the completion of the sale, the insider owned 57,972 shares in the company, valued at $5,484,730.92. This represents a 11.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 413,568 shares of company stock worth $42,435,038 in the last three months. Company insiders own 6.30% of the company's stock.

Institutional Trading of Charles Schwab

A number of hedge funds have recently added to or reduced their stakes in the stock. Cornerstone Planning LLC acquired a new stake in Charles Schwab in the fourth quarter valued at approximately $302,000. Rockefeller Capital Management L.P. boosted its position in Charles Schwab by 16.2% in the fourth quarter. Rockefeller Capital Management L.P. now owns 364,328 shares of the financial services provider's stock valued at $36,400,000 after buying an additional 50,725 shares in the last quarter. World Investment Advisors boosted its position in Charles Schwab by 6.4% in the fourth quarter. World Investment Advisors now owns 184,953 shares of the financial services provider's stock valued at $18,479,000 after buying an additional 11,136 shares in the last quarter. DUTCH ASSET Corp acquired a new stake in Charles Schwab in the fourth quarter valued at approximately $624,000. Finally, Larry Mathis Financial Planning LLC acquired a new stake in Charles Schwab in the fourth quarter valued at approximately $728,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Company Profile

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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