Charles Schwab (NYSE:SCHW) Price Target Raised to $111.00 at Keefe, Bruyette & Woods

Key Points

• Charles Schwab's target price was raised to $111.00 by Keefe, Bruyette & Woods, indicating a potential upside of 18.87% from its previous close.
• Despite the upgrade, analysts hold varied views, with some firms like Goldman Sachs rating it as a "buy" with a price objective of $114.00 while Zacks Research downgraded it to a "hold".
• Charles Schwab reported a 26.6% year-over-year increase in revenue, totaling $6.14 billion, and beat earnings estimates with an EPS of $1.31 for the latest quarter.

Charles Schwab (NYSE:SCHW - Get Free Report) had its target price raised by analysts at Keefe, Bruyette & Woods from $109.00 to $111.00 in a research report issued on Friday,Benzinga reports. The firm presently has an "outperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' target price indicates a potential upside of 18.87% from the stock's previous close.

Several other equities analysts have also issued reports on the stock. The Goldman Sachs Group reissued a "buy" rating and set a $114.00 price objective on shares of Charles Schwab in a report on Friday. Zacks Research lowered shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 17th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Charles Schwab from $119.00 to $120.00 and gave the stock a "buy" rating in a report on Friday. Morgan Stanley dropped their price objective on shares of Charles Schwab to $130.00 and set an "overweight" rating on the stock in a report on Wednesday, October 1st. Finally, Truist Financial set a $112.00 target price on shares of Charles Schwab in a research report on Thursday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Charles Schwab currently has a consensus rating of "Moderate Buy" and a consensus target price of $103.05.

Charles Schwab Trading Down 1.0%

Shares of Charles Schwab stock opened at $93.38 on Friday. The company has a market capitalization of $169.51 billion, a P/E ratio of 25.10, a P/E/G ratio of 0.89 and a beta of 0.97. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The company has a fifty day moving average of $94.74 and a 200 day moving average of $89.47. Charles Schwab has a fifty-two week low of $65.88 and a fifty-two week high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Thursday, October 16th. The financial services provider reported $1.31 EPS for the quarter, beating the consensus estimate of $1.25 by $0.06. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The business had revenue of $6.14 billion during the quarter, compared to the consensus estimate of $5.93 billion. During the same quarter in the prior year, the firm earned $0.71 EPS. The business's revenue was up 26.6% on a year-over-year basis. On average, sell-side analysts anticipate that Charles Schwab will post 4.22 earnings per share for the current fiscal year.

Charles Schwab announced that its Board of Directors has approved a stock buyback program on Thursday, July 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In other Charles Schwab news, insider Nigel J. Murtagh sold 24,096 shares of Charles Schwab stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the transaction, the insider directly owned 58,999 shares in the company, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the sale, the chairman directly owned 590,734 shares in the company, valued at approximately $58,388,148.56. The trade was a 22.74% decrease in their position. The disclosure for this sale can be found here. Insiders sold 267,128 shares of company stock worth $26,232,077 over the last three months. Company insiders own 6.30% of the company's stock.

Hedge Funds Weigh In On Charles Schwab

A number of institutional investors have recently modified their holdings of SCHW. Capricorn Fund Managers Ltd increased its position in Charles Schwab by 7.2% during the third quarter. Capricorn Fund Managers Ltd now owns 13,617 shares of the financial services provider's stock worth $1,300,000 after purchasing an additional 916 shares during the last quarter. Apollon Wealth Management LLC boosted its stake in Charles Schwab by 4.2% during the 3rd quarter. Apollon Wealth Management LLC now owns 40,131 shares of the financial services provider's stock valued at $3,831,000 after acquiring an additional 1,627 shares during the last quarter. HBW Advisory Services LLC bought a new position in Charles Schwab during the 3rd quarter valued at $1,603,000. Burney Co. boosted its stake in Charles Schwab by 26.9% during the 3rd quarter. Burney Co. now owns 226,656 shares of the financial services provider's stock valued at $21,639,000 after acquiring an additional 48,091 shares during the last quarter. Finally, Nvwm LLC boosted its stake in Charles Schwab by 3,333.3% during the 3rd quarter. Nvwm LLC now owns 515 shares of the financial services provider's stock valued at $49,000 after acquiring an additional 500 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.