Charles Schwab (NYSE:SCHW) Sets New 1-Year Low - What's Next?

Key Points

• Charles Schwab hit a new 52-week low, trading as low as $84.72 as investors reacted to recent pressure on the stock.
• The main concerns were Schwab’s $2.25 billion debt issuance and ongoing insider selling, including a recent sale by co-chairman Charles R. Schwab, which weighed on sentiment.
• Despite the share-price weakness, Schwab’s operating results remain solid, with $7.2 billion in core net new assets in April, strong quarterly earnings, and analysts still holding a Moderate Buy consensus rating.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) shares reached a new 52-week low on Wednesday . The stock traded as low as $84.72 and last traded at $86.7770, with a volume of 5086892 shares. The stock had previously closed at $89.40.

More Charles Schwab News

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

• Negative Sentiment: Schwab issued $1.0 billion of fixed-to-floating senior notes due 2030 and $1.25 billion due 2037, which can raise investor concern about funding costs and leverage for a brokerage-bank hybrid. Article: Charles Schwab slips 3.2% as investors digest new debt issuance and recent insider selling
• Negative Sentiment: Recent insider sales added to cautious sentiment, including co-chairman Charles R. Schwab’s sale of 27,500 shares; the broader pattern shows no insider purchases in the last six months. Article: Charles Schwab slips 3.2% as investors digest new debt issuance and recent insider selling
• Neutral Sentiment: Schwab’s April activity report showed solid business momentum, with $7.2 billion in core net new assets and $12.61 trillion in client assets, which supports the longer-term franchise but was not enough to offset the near-term pressure. Article: Charles Schwab slips 3.2% as investors digest new debt issuance and recent insider selling
• Neutral Sentiment: The Charles Schwab Foundation launched Schwab Moneywise Momentum Grants, reinforcing the company’s financial education brand, but the announcement is unlikely to move the stock by itself. Article: Charles Schwab Foundation Launches Schwab Moneywise Momentum Grants as Part of a $20 Million Multi-Year Commitment to Financial Education
• Neutral Sentiment: Robinhood’s launch of AI agents for trading and purchases highlights rising competition and innovation in brokerage tech, but it is only an indirect competitive datapoint for Schwab. Article: Robinhood Launches AI Agents for Stock Trading and Credit Card Purchases

Analysts Set New Price Targets

SCHW has been the topic of several research reports. TD Cowen upped their price objective on shares of Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $128.00 price objective on shares of Charles Schwab in a report on Friday, May 15th. Keefe, Bruyette & Woods initiated coverage on shares of Charles Schwab in a report on Wednesday, April 8th. They issued an "outperform" rating and a $110.00 target price for the company. Argus set a $108.00 target price on shares of Charles Schwab in a report on Monday, April 20th. Finally, Morgan Stanley lowered their target price on shares of Charles Schwab from $135.00 to $125.00 and set an "overweight" rating for the company in a report on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Charles Schwab currently has a consensus rating of "Moderate Buy" and an average target price of $114.30.

Charles Schwab Stock Performance

The company's fifty day moving average price is $92.60 and its 200 day moving average price is $95.80. The company has a market cap of $149.98 billion, a PE ratio of 17.11, a P/E/G ratio of 0.61 and a beta of 0.80. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Thursday, April 16th. The financial services provider reported $1.43 EPS for the quarter, beating the consensus estimate of $1.39 by $0.04. The company had revenue of $6.48 billion during the quarter, compared to the consensus estimate of $6.39 billion. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The firm's revenue for the quarter was up 15.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.04 earnings per share. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. On average, equities research analysts predict that The Charles Schwab Corporation will post 6.12 earnings per share for the current year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were given a dividend of $0.32 per share. The ex-dividend date was Friday, May 8th. This represents a $1.28 annualized dividend and a yield of 1.5%. Charles Schwab's dividend payout ratio is presently 25.40%.

Insider Activity at Charles Schwab

In related news, insider Dennis Howard sold 10,108 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $94.60, for a total transaction of $956,216.80. Following the completion of the transaction, the insider owned 10,470 shares in the company, valued at approximately $990,462. This represents a 49.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Frank C. Herringer sold 2,520 shares of the stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total transaction of $228,312.00. Following the transaction, the director owned 177,508 shares of the company's stock, valued at approximately $16,082,224.80. The trade was a 1.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 99,021 shares of company stock worth $9,617,291 in the last ninety days. Corporate insiders own 6.30% of the company's stock.

Hedge Funds Weigh In On Charles Schwab

Institutional investors have recently added to or reduced their stakes in the stock. Dogwood Wealth Management LLC boosted its position in Charles Schwab by 99.2% during the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock worth $25,000 after purchasing an additional 123 shares during the period. Piscataqua Savings Bank bought a new position in Charles Schwab during the fourth quarter worth about $26,000. GoalVest Advisory LLC bought a new position in Charles Schwab during the fourth quarter worth about $28,000. Beacon Financial Strategies CORP bought a new position in Charles Schwab during the fourth quarter worth about $29,000. Finally, Scarborough Advisors LLC bought a new position in Charles Schwab during the first quarter worth about $29,000. Institutional investors own 84.38% of the company's stock.

About Charles Schwab

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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