Charles Schwab (NYSE:SCHW) Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Charles Schwab from “hold” to “strong-buy,” reflecting a more optimistic earnings outlook and improved sentiment on the stock.
• Other analysts remain mostly positive, with several firms issuing buy or overweight ratings, though some have trimmed price targets. The consensus rating is still Moderate Buy with an average price target of $116.32.
• Charles Schwab recently beat quarterly earnings and revenue expectations, reporting EPS of $1.43 versus $1.39 expected and revenue of $6.48 billion versus $6.39 billion expected. The stock has also traded near its 52-week high of $107.50 after opening at $103.02.

Charles Schwab (NYSE:SCHW - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Thursday,Zacks.com reports.

Several other analysts have also weighed in on the company. Jefferies Financial Group lowered their target price on Charles Schwab from $122.00 to $118.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Piper Sandler boosted their price objective on shares of Charles Schwab from $103.00 to $105.00 and gave the stock a "neutral" rating in a research report on Friday, May 15th. Keefe, Bruyette & Woods started coverage on shares of Charles Schwab in a research note on Wednesday, April 8th. They issued an "outperform" rating and a $110.00 price objective on the stock. Barclays dropped their target price on shares of Charles Schwab from $127.00 to $122.00 and set an "overweight" rating for the company in a report on Thursday. Finally, Truist Financial cut their target price on shares of Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $116.32.

Charles Schwab Price Performance

SCHW stock opened at $103.02 on Thursday. The firm has a 50 day moving average of $91.64 and a 200-day moving average of $95.34. Charles Schwab has a 12-month low of $83.96 and a 12-month high of $107.50. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.48. The company has a market cap of $179.17 billion, a price-to-earnings ratio of 20.44, a PEG ratio of 0.93 and a beta of 0.77.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, topping analysts' consensus estimates of $1.39 by $0.04. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The business had revenue of $6.48 billion for the quarter, compared to analysts' expectations of $6.39 billion. During the same quarter in the prior year, the firm posted $1.04 EPS. The company's revenue was up 15.8% compared to the same quarter last year. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. As a group, equities analysts expect that Charles Schwab will post 6.19 EPS for the current fiscal year.

Insider Activity

In other Charles Schwab news, insider Jonathan S. Beatty sold 2,000 shares of Charles Schwab stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $100.01, for a total value of $200,020.00. Following the completion of the sale, the insider directly owned 13,738 shares of the company's stock, valued at approximately $1,373,937.38. The trade was a 12.71% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul V. Woolway sold 7,942 shares of the business's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $98.00, for a total value of $778,316.00. Following the completion of the transaction, the insider owned 29,866 shares of the company's stock, valued at $2,926,868. This trade represents a 21.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 63,700 shares of company stock worth $6,283,211. 6.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Charles Schwab

A number of hedge funds and other institutional investors have recently made changes to their positions in SCHW. State Street Corp lifted its position in Charles Schwab by 1.0% during the third quarter. State Street Corp now owns 73,156,290 shares of the financial services provider's stock worth $6,984,231,000 after buying an additional 691,671 shares during the period. Geode Capital Management LLC grew its holdings in Charles Schwab by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider's stock valued at $3,747,646,000 after buying an additional 98,242 shares during the period. Franklin Resources Inc. grew its holdings in Charles Schwab by 0.3% in the 4th quarter. Franklin Resources Inc. now owns 30,184,369 shares of the financial services provider's stock valued at $3,015,720,000 after buying an additional 78,020 shares during the period. Primecap Management Co. CA increased its stake in shares of Charles Schwab by 9.7% during the 4th quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider's stock valued at $2,325,512,000 after acquiring an additional 2,066,884 shares during the last quarter. Finally, Fisher Asset Management LLC lifted its holdings in shares of Charles Schwab by 0.8% during the 4th quarter. Fisher Asset Management LLC now owns 21,818,514 shares of the financial services provider's stock worth $2,179,888,000 after acquiring an additional 171,926 shares during the period. Hedge funds and other institutional investors own 84.38% of the company's stock.

Key Charles Schwab News

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Charles Schwab was upgraded to a Zacks Rank #1 (Strong Buy), signaling improving earnings outlooks and potentially boosting near-term investor sentiment. Article Title
• Positive Sentiment: Morgan Stanley raised its price target on SCHW to $133 from $125 and kept an overweight rating, reinforcing expectations for more upside.
• Positive Sentiment: Brokerage sentiment remains constructive overall, with another report citing an average Moderate Buy rating from analysts.
• Positive Sentiment: Schwab’s push into digital assets and crypto trading could be an additional long-term growth driver, as the company reportedly hires for its blockchain and crypto team ahead of a rollout. Article Title
• Neutral Sentiment: Schwab strategists warned that the era of easy index gains may be ending, reflecting a more volatile market backdrop that could affect trading and client behavior in either direction. Article Title
• Neutral Sentiment: Media coverage about Trump-related trading activity through a Schwab account is likely more of a headline risk than a direct business driver unless it leads to regulatory or reputational issues. Article Title
• Negative Sentiment: Barclays lowered its price target on SCHW to $122 from $127, which is a modest negative, though the firm still rates the stock overweight.

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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