Charles Schwab (NYSE:SCHW) Reaches New 12-Month High - Here's Why

Key Points

• Charles Schwab shares reached a new 52-week high of $112.50, supported by largely bullish analyst sentiment. The stock has a “Moderate Buy” consensus rating and an average price target of $121.17, with recent targets ranging from $109 to $136.
• The company reported strong quarterly results, with earnings per share of $1.62 versus the $1.56 consensus estimate and revenue of $7.07 billion, up 20.9% year over year.
• Charles Schwab declared a quarterly dividend of $0.32, equivalent to an annualized $1.28 payout and a 1.1% yield. Meanwhile, insiders sold nearly 399,000 shares worth about $41.7 million over the past three months.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report)'s stock price reached a new 52-week high on Monday . The company traded as high as $112.50 and last traded at $112.50, with a volume of 1257 shares traded. The stock had previously closed at $112.30.

Analyst Upgrades and Downgrades

SCHW has been the subject of a number of research analyst reports. Barclays upped their price objective on Charles Schwab from $122.00 to $125.00 and gave the stock an "overweight" rating in a report on Wednesday, July 22nd. TD Cowen upped their price target on Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Wolfe Research restated an "outperform" rating and issued a $127.00 price objective on shares of Charles Schwab in a report on Tuesday, July 21st. UBS Group set a $135.00 target price on Charles Schwab in a report on Monday, August 3rd. Finally, Morgan Stanley boosted their price target on Charles Schwab from $133.00 to $136.00 and gave the stock an "overweight" rating in a research note on Monday, July 27th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $121.17.

Charles Schwab Stock Performance

The firm has a market capitalization of $194.55 billion, a price-to-earnings ratio of 20.45, a price-to-earnings-growth ratio of 0.84 and a beta of 0.76. The company has a 50-day moving average of $101.59 and a 200-day moving average of $96.09. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.52.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.56 by $0.06. The firm had revenue of $7.07 billion for the quarter, compared to analyst estimates of $6.90 billion. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%.The firm's revenue for the quarter was up 20.9% on a year-over-year basis. During the same period last year, the company earned $1.14 earnings per share. On average, equities research analysts forecast that The Charles Schwab Corporation will post 6.46 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Friday, August 14th. Charles Schwab's dividend payout ratio is presently 23.27%.

Insider Transactions at Charles Schwab

In other news, insider Dennis Howard sold 28,000 shares of the firm'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 completion of the sale, the insider owned 10,470 shares of the company's stock, valued at $1,099,454.70. This trade represents a 72.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula A. Sneed sold 5,263 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $107.15, for a total value of $563,930.45. Following the completion of the transaction, the director owned 91,711 shares in the company, valued at $9,826,833.65. This represents a 5.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 398,984 shares of company stock worth $41,699,569 in the last three months. Insiders own 6.30% of the company's stock.

Hedge Funds Weigh In On Charles Schwab

Several institutional investors and hedge funds have recently modified their holdings of the stock. Souders Financial Advisors raised its stake in Charles Schwab by 2.3% during the 4th quarter. Souders Financial Advisors now owns 4,341 shares of the financial services provider's stock valued at $434,000 after acquiring an additional 98 shares during the last quarter. Essex Financial Services Inc. lifted its holdings in shares of Charles Schwab by 0.8% in the 4th quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider's stock valued at $1,282,000 after buying an additional 105 shares during the period. Sheets Smith Wealth Management boosted its stake in shares of Charles Schwab by 0.7% in the first quarter. Sheets Smith Wealth Management now owns 14,521 shares of the financial services provider's stock valued at $1,365,000 after buying an additional 108 shares in the last quarter. Acorn Financial Advisory Services Inc. ADV grew its holdings in Charles Schwab by 4.5% during the fourth quarter. Acorn Financial Advisory Services Inc. ADV now owns 2,536 shares of the financial services provider's stock worth $253,000 after acquiring an additional 110 shares during the period. Finally, Interchange Capital Partners LLC grew its holdings in Charles Schwab by 2.8% during the fourth quarter. Interchange Capital Partners LLC now owns 4,104 shares of the financial services provider's stock worth $410,000 after acquiring an additional 112 shares during the period. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

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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