Charles Schwab (NYSE:SCHW) Rating Increased to Strong-Buy at Compass Point

Key Points

• Compass Point upgraded Charles Schwab to “strong buy.” The broader analyst consensus remains “Moderate Buy,” with a consensus price target of $121.17.
• Charles Schwab reported quarterly EPS of $1.62, exceeding estimates of $1.56, while revenue rose 20.9% year over year to $7.07 billion.
• The stock opened at $105.76 and is near its 52-week high of $107.50. Institutional investors own 84.38% of shares, while insiders sold about $37.9 million worth of stock over the past three months.

Charles Schwab (NYSE:SCHW - Get Free Report) was upgraded by equities research analysts at Compass Point to a "strong-buy" rating in a research report issued to clients and investors on Sunday,Zacks.com reports.

A number of other equities research analysts have also recently issued reports on SCHW. Weiss Ratings reiterated a "buy (b-)" rating on shares of Charles Schwab in a research report on Thursday, June 18th. Jefferies Financial Group cut their price target on shares of Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a report on Monday, April 6th. Zacks Research upgraded shares of Charles Schwab from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 9th. Argus upped their price objective on shares of Charles Schwab from $108.00 to $114.00 and gave the stock a "buy" rating in a research note on Thursday, July 23rd. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Charles Schwab in a report on Wednesday, July 22nd. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Charles Schwab has an average rating of "Moderate Buy" and a consensus target price of $121.17.

Charles Schwab Stock Performance

SCHW opened at $105.76 on Friday. The stock's 50 day simple moving average is $95.64 and its 200-day simple moving average is $95.48. 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 stock has a market cap of $183.94 billion, a PE ratio of 19.23, a P/E/G ratio of 0.80 and a beta of 0.76. Charles Schwab has a 1 year low of $83.96 and a 1 year high of $107.50.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, topping analysts' consensus estimates of $1.56 by $0.06. The company had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.73%. The firm's revenue for the quarter was up 20.9% compared to the same quarter last year. During the same period last year, the firm earned $1.14 EPS. Sell-side analysts forecast that Charles Schwab will post 6.46 EPS for the current year.

Insiders Place Their Bets

In other news, insider Jonathan S. Beatty sold 2,000 shares of the company's stock in a transaction that occurred on Tuesday, July 21st. The shares were sold at an average price of $104.21, for a total transaction of $208,420.00. Following the transaction, the insider directly owned 11,738 shares in the company, valued at approximately $1,223,216.98. This represents a 14.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dennis Howard sold 28,000 shares of the company's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $105.01, for a total value of $2,940,280.00. Following the transaction, the insider directly owned 10,470 shares in the company, valued at approximately $1,099,454.70. This represents a 72.78% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 363,848 shares of company stock valued at $37,874,706 over the last three months. Company insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Charles Schwab

Several institutional investors have recently modified their holdings of the business. Next Capital Management LLC acquired a new position in Charles Schwab in the second quarter valued at approximately $1,506,000. Trust Asset Management LLC grew its holdings in Charles Schwab by 9.5% during the 2nd quarter. Trust Asset Management LLC now owns 18,377 shares of the financial services provider's stock worth $1,696,000 after acquiring an additional 1,596 shares during the period. Whitener Capital Management Inc. raised its position in shares of Charles Schwab by 17.0% during the 2nd quarter. Whitener Capital Management Inc. now owns 24,877 shares of the financial services provider's stock valued at $2,295,000 after acquiring an additional 3,608 shares during the last quarter. Tema ETFs LLC raised its position in shares of Charles Schwab by 10.6% during the 2nd quarter. Tema ETFs LLC now owns 31,695 shares of the financial services provider's stock valued at $2,924,000 after acquiring an additional 3,045 shares during the last quarter. Finally, Lederer & Associates Investment Counsel CA acquired a new position in shares of Charles Schwab in the 2nd quarter valued at $1,624,000. 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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