Charles Schwab (NYSE:SCHW) Upgraded by BMO Capital Markets to Strong-Buy Rating

Key Points

• Charles Schwab has received an upgraded "strong-buy" rating from BMO Capital Markets, indicating positive sentiment among investors regarding the company's stock potential.
• The stock's current market price is $94.13, with a recent high of $99.59 and a low of $64.07 in the past 12 months, reflecting volatility in its trading range.
• Charles Schwab's board has authorized a $20 billion stock buyback plan, suggesting confidence in the company's valuation and providing support for its share price.

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

A number of other research analysts have also recently commented on the company. Morgan Stanley lowered their price target on Charles Schwab to $130.00 and set an "overweight" rating on the stock in a report on Wednesday. Truist Financial set a $112.00 price target on Charles Schwab in a report on Thursday. Keefe, Bruyette & Woods upped their price objective on Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a report on Monday, July 21st. Raymond James Financial reaffirmed an "outperform" rating and set a $99.00 price objective on shares of Charles Schwab in a report on Friday, July 18th. Finally, Zacks Research cut Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 17th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and an average target price of $100.52.

Charles Schwab Stock Up 1.5%

NYSE SCHW opened at $94.13 on Thursday. The stock's 50 day moving average is $95.37 and its 200 day moving average is $88.57. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. Charles Schwab has a 12 month low of $64.07 and a 12 month high of $99.59. The stock has a market cap of $170.87 billion, a PE ratio of 25.30, a P/E/G ratio of 0.90 and a beta of 0.97.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The company had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same period in the previous year, the firm earned $0.73 EPS. The firm's revenue was up 24.8% compared to the same quarter last year. Research analysts predict that Charles Schwab will post 4.22 EPS for the current fiscal year.

Charles Schwab declared that its board has authorized a stock buyback plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 11.6% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board believes its stock is undervalued.

Insider Activity

In other news, insider Paul V. Woolway sold 3,290 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $96.06, for a total transaction of $316,037.40. Following the transaction, the insider owned 41,188 shares of the company's stock, valued at approximately $3,956,519.28. The trade was a 7.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the business's stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total value of $4,851,552.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 267,128 shares of company stock worth $26,232,077. Company insiders own 6.30% of the company's stock.

Hedge Funds Weigh In On Charles Schwab

Large investors have recently modified their holdings of the stock. Norges Bank bought a new position in Charles Schwab in the 2nd quarter valued at $1,889,858,000. Vanguard Group Inc. grew its position in Charles Schwab by 15.4% in 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 acquiring an additional 19,817,022 shares during the last quarter. Wellington Management Group LLP grew its position in Charles Schwab by 595.7% in the 1st quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock valued at $1,212,461,000 after acquiring an additional 13,262,309 shares during the last quarter. Primecap Management Co. CA grew its position in Charles Schwab by 229.3% in the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock valued at $1,096,083,000 after acquiring an additional 9,749,728 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its position in Charles Schwab by 12.3% in the 1st 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 acquiring an additional 8,954,248 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Charles Schwab Company Profile

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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