Charles Schwab (NYSE:SCHW) Price Target Raised to $134.00 at TD Cowen

Key Points

• TD Cowen raised Charles Schwab's (NYSE:SCHW) price target to $134.00 from $129.00, indicating a potential upside of 43.06% from the stock's latest closing price.
• Despite the price increase, the average consensus rating for Schwab remains at "Moderate Buy", with a target average of $104.70 among analysts.
• Charles Schwab's recent quarterly earnings showed an EPS of $1.31, exceeding analyst expectations and a year-over-year revenue growth of 26.6% to $6.14 billion.

Charles Schwab (NYSE:SCHW - Get Free Report) had its price target increased by research analysts at TD Cowen from $129.00 to $134.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a "buy" rating on the financial services provider's stock. TD Cowen's price target points to a potential upside of 43.06% from the company's previous close.

SCHW has been the subject of a number of other reports. Citigroup boosted their price target on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Raymond James Financial restated an "outperform" rating and set a $99.00 target price on shares of Charles Schwab in a research report on Friday, July 18th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $114.00 price objective on shares of Charles Schwab in a research report on Friday. Piper Sandler reaffirmed a "neutral" rating on shares of Charles Schwab in a research report on Tuesday. Finally, Truist Financial upped their price objective on shares of Charles Schwab from $112.00 to $113.00 and gave the company a "buy" rating in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Charles Schwab currently has an average rating of "Moderate Buy" and a consensus price target of $104.70.

Charles Schwab Price Performance

Shares of SCHW stock traded up $0.26 during midday trading on Friday, reaching $93.67. 1,781,593 shares of the company traded hands, compared to its average volume of 9,881,511. The firm's 50 day simple moving average is $94.74 and its two-hundred day simple moving average is $89.47. Charles Schwab has a 1-year low of $65.88 and a 1-year high of $99.59. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The firm has a market cap of $170.03 billion, a PE ratio of 25.22, a price-to-earnings-growth ratio of 0.89 and a beta of 0.97.

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

Charles Schwab declared that its Board of Directors has authorized a stock repurchase plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, insider Jonathan S. Beatty sold 6,144 shares of the stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $96.81, for a total transaction of $594,800.64. Following the transaction, the insider directly owned 11,923 shares in the company, valued at $1,154,265.63. This represents a 34.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Paul V. Woolway sold 3,205 shares of the stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $93.33, for a total transaction of $299,122.65. Following the transaction, the insider owned 34,778 shares in the company, valued at $3,245,830.74. This trade represents a 8.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 267,128 shares of company stock valued at $26,232,077. Company insiders own 6.30% of the company's stock.

Institutional Trading of Charles Schwab

A number of institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank bought a new position in Charles Schwab in the second quarter worth about $1,889,858,000. Vanguard Group Inc. boosted its position in Charles Schwab by 15.4% during the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock valued at $11,616,380,000 after purchasing an additional 19,817,022 shares during the period. Wellington Management Group LLP grew its position in shares of Charles Schwab by 595.7% during the first quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock worth $1,212,461,000 after acquiring an additional 13,262,309 shares during the last quarter. Primecap Management Co. CA grew its position in shares of Charles Schwab by 229.3% during the first quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock worth $1,096,083,000 after acquiring an additional 9,749,728 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD increased its stake in shares of Charles Schwab by 12.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock valued at $6,422,795,000 after purchasing an additional 8,954,248 shares during the period. 84.38% of the stock is owned by institutional investors and hedge funds.

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.

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