The Charles Schwab Corporation (NYSE:SCHW) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts remain broadly bullish: Charles Schwab holds a “Moderate Buy” consensus from 21 analysts, with 16 buy and two strong-buy ratings. The average 12-month price target is $121.17, above the reported $108.09 share price.
• Recent financial results exceeded expectations: Schwab reported quarterly EPS of $1.62 versus the $1.56 consensus and revenue of $7.07 billion, up 20.9% year over year. The company also declared a quarterly dividend of $0.32 per share, yielding approximately 1.2% annually.
• Growth opportunities face offsetting risks: Expanding Schwab’s crypto platform and fintech partnerships could increase engagement and revenue, but heightened competition, interest-rate sensitivity and substantial insider share sales may weigh on investor sentiment.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twenty-one ratings firms that are covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, sixteen have given a buy rating and two have assigned a strong buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $121.1667.

Several research analysts have recently weighed in on SCHW shares. TD Cowen boosted their price target on shares of Charles Schwab from $108.00 to $109.00 and gave the company a "buy" rating in a research report on Friday, May 15th. Zacks Research upgraded shares of Charles Schwab from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 9th. Weiss Ratings reissued a "buy (b-)" rating on shares of Charles Schwab in a research note on Thursday, June 18th. Morgan Stanley increased their price target on Charles Schwab from $133.00 to $136.00 and gave the stock an "overweight" rating in a report on Monday, July 27th. Finally, Compass Point assumed coverage on shares of Charles Schwab in a research note on Monday, August 3rd. They set a "buy" rating and a $135.00 target price for the company.

More Charles Schwab News

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

• Positive Sentiment: Schwab plans to expand Schwab Crypto beyond Bitcoin and Ethereum by adding Solana, Avalanche and Chainlink in the coming months. The broader digital-asset lineup could attract new clients, increase engagement and create additional trading-related revenue opportunities. Charles Schwab to add Solana, Avalanche and Chainlink to crypto platform
• Positive Sentiment: OneVest has gone live on Schwab’s Digital Account Opening API, including a headless integration option. The partnership broadens Schwab’s fintech connectivity and could strengthen its custody and advisor-technology platform. OneVest Goes Live on Schwab's Digital Account Opening API
• Neutral Sentiment: Schwab is publishing guidance on retirement withdrawals and other savings “money traps.” The content may support customer trust and financial education, but it is unlikely to materially affect near-term earnings. Schwab says one common 401(k) withdrawal habit raises taxes
• Negative Sentiment: Vanguard’s $4 billion Altruist acquisition could intensify competition for independent advisors and custody assets, potentially increasing Schwab’s technology spending and pricing pressure. Vanguard Takes On Fidelity, Charles Schwab With $4 Billion Altruist Deal
• Negative Sentiment: Chairman Walter Bettinger sold 176,210 SCHW shares for approximately $20 million, reducing his ownership by 22.4%. The sizable disclosed sale may reinforce investor caution, particularly after the stock’s strong rally and recent high. SEC insider transaction filing
• Negative Sentiment: Schwab remains sensitive to interest-rate expectations and bank-sweep balances. Recent macro uncertainty and profit-taking after strong earnings appear to be outweighing the potential near-term benefit from its crypto expansion.

Insiders Place Their Bets

In other news, insider Nigel J. Murtagh sold 32,947 shares of Charles Schwab stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $104.01, for a total value of $3,426,817.47. Following the completion of the transaction, the insider owned 57,972 shares in the company, valued at approximately $6,029,667.72. This trade represents a 36.24% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dennis Howard sold 28,000 shares of Charles Schwab stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $105.01, for a total transaction of $2,940,280.00. Following the completion of the transaction, the insider owned 10,470 shares of the company's stock, valued at $1,099,454.70. This represents a 72.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 575,194 shares of company stock valued at $61,697,642. 6.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp boosted its holdings in Charles Schwab by 1.0% in the third quarter. State Street Corp now owns 73,156,290 shares of the financial services provider's stock valued at $6,984,231,000 after purchasing an additional 691,671 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Charles Schwab by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider's stock worth $3,747,646,000 after buying an additional 98,242 shares during the last quarter. Franklin Resources Inc. boosted its holdings in shares of 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 in the last quarter. Primecap Management Co. CA grew its position in shares of Charles Schwab by 9.7% in 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 buying an additional 2,066,884 shares during the last quarter. Finally, Fisher Asset Management LLC raised its stake in 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 in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab Stock Down 1.2%

NYSE SCHW opened at $108.09 on Friday. The business has a fifty day moving average price of $103.05 and a 200 day moving average price of $96.29. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.64 and a current ratio of 0.64. The company has a market cap of $186.93 billion, a P/E ratio of 19.65, a P/E/G ratio of 0.82 and a beta of 0.76. Charles Schwab has a one year low of $83.96 and a one year high of $114.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly 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. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The firm had revenue of $7.07 billion for the quarter, compared to the consensus estimate of $6.90 billion. During the same period last year, the firm posted $1.14 earnings per share. The company's revenue for the quarter was up 20.9% on a year-over-year basis. Research analysts anticipate that Charles Schwab will post 6.46 EPS for the current fiscal year.

Charles Schwab Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Friday, August 14th. Charles Schwab's dividend payout ratio (DPR) is 23.27%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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