The Charles Schwab Corporation (SCHW) - What Are Brokerages Saying About This Stock?

Key Points

• Analyst sentiment is broadly positive: Charles Schwab has a “Moderate Buy” consensus from 24 analysts, with 18 buy, five hold and one sell rating; the average 12-month price target is $119.91.
• Recent earnings were mixed: Quarterly EPS of $1.69 topped the $1.66 consensus, while revenue of $7.17 billion narrowly missed expectations. Revenue rose 16.9% year over year.
• Schwab expanded its crypto offering to include Solana, Avalanche and Chainlink for eligible U.S. clients, and lowered minimums for requesting IPO shares. Its Trading Activity Index also rose in October, signaling increased retail-investor activity.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) has earned an average recommendation of "Moderate Buy" from the twenty-four ratings firms that are currently covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and eighteen have given a buy recommendation to the company. The average 1-year price target among brokers that have covered the stock in the last year is $119.91.

Several equities analysts have weighed in on the stock. Jefferies Financial Group set a $120.00 price target on shares of Charles Schwab in a report on Friday, October 16th. Bank of America increased their price objective on shares of Charles Schwab from $91.00 to $95.00 and gave the stock an "underperform" rating in a research note on Monday, October 5th. Zacks Research cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 14th. UBS Group dropped their target price on shares of Charles Schwab from $113.00 to $109.00 and set a "buy" rating for the company in a report on Friday, October 16th. Finally, Weiss Ratings upgraded Charles Schwab from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, September 10th.

Charles Schwab Stock Performance

Shares of SCHW opened at $93.18 on Wednesday. The business has a 50-day simple moving average of $97.82 and a two-hundred day simple moving average of $97.29. The company has a quick ratio of 0.64, a current ratio of 0.66 and a debt-to-equity ratio of 0.53. Charles Schwab has a 52 week low of $83.96 and a 52 week high of $114.53. The stock has a market cap of $160.83 billion, a price-to-earnings ratio of 15.90, a PEG ratio of 0.82 and a beta of 0.77.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Thursday, October 15th. The financial services provider reported $1.69 earnings per share for the quarter, beating analysts' consensus estimates of $1.66 by $0.03. The firm had revenue of $7.17 billion for the quarter, compared to analysts' expectations of $7.18 billion. Charles Schwab had a return on equity of 25.46% and a net margin of 39.33%. The business's quarterly revenue was up 16.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.31 EPS. On average, analysts expect that Charles Schwab will post 6.41 EPS for the current year.

Charles Schwab Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Friday, November 13th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.4%. Charles Schwab's dividend payout ratio is 21.84%.

Key Charles Schwab News

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

• Positive Sentiment: Schwab Crypto added Solana, Avalanche and Chainlink for eligible U.S. investors, expanding its lineup beyond Bitcoin and Ether. The broader selection may help Schwab compete for crypto-trading activity and deepen relationships with its large brokerage customer base; the offering is limited to eligible clients. Schwab Crypto Adds Chainlink, Solana and Avalanche for Eligible US Investors
• Positive Sentiment: Schwab lowered account minimums for clients seeking IPO shares. Easier access could make the service available to more investors and support account acquisition or engagement. Charles Schwab Lowers Account Minimums to Request IPO Shares
• Neutral Sentiment: Schwab’s Trading Activity Index rose to 61.94 in October from 58.92 in September, indicating increased retail-investor activity. This may support trading-related revenue, but the index alone does not show how much activity translated into Schwab’s results. Schwab Trading Activity Index: STAX Score Rises in October Despite AI Selloff

Insider Activity at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 74,388 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $110.91, for a total transaction of $8,250,373.08. Following the completion of the sale, the chairman directly owned 610,360 shares of the company's stock, valued at $67,695,027.60. This trade represents a 10.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Dennis Howard sold 2,198 shares of Charles Schwab stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $110.00, for a total transaction of $241,780.00. Following the sale, the insider owned 6,980 shares in the company, valued at approximately $767,800. The trade was a 23.95% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 253,796 shares of company stock valued at $28,601,556. 6.30% of the stock is owned by company insiders.

Institutional Trading of Charles Schwab

A number of institutional investors and hedge funds have recently bought and sold shares of SCHW. Bank of New York Mellon Corp grew its position in shares of Charles Schwab by 22.9% during the first quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider's stock valued at $1,518,913,000 after purchasing an additional 3,009,884 shares in the last quarter. Bank of America Corp DE lifted its position in shares of Charles Schwab by 3.5% in the first quarter. Bank of America Corp DE now owns 15,623,030 shares of the financial services provider's stock worth $1,468,252,000 after buying an additional 530,191 shares in the last quarter. Flossbach Von Storch SE bought a new position in Charles Schwab during the second quarter valued at approximately $987,930,000. Dimensional Fund Advisors LP boosted its stake in Charles Schwab by 1.1% during the first quarter. Dimensional Fund Advisors LP now owns 5,742,934 shares of the financial services provider's stock valued at $539,705,000 after buying an additional 60,979 shares during the last quarter. Finally, Provident Trust Co. boosted its stake in Charles Schwab by 0.4% during the second quarter. Provident Trust Co. now owns 3,716,441 shares of the financial services provider's stock valued at $342,916,000 after buying an additional 13,616 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors.

About Charles Schwab

The Charles Schwab Corporation is a financial services company that provides brokerage, banking, wealth management, and investment services. Its offerings include brokerage accounts, trading and research tools, retirement products, banking services, and investment advice for individuals, as well as services for independent financial advisors, employers, and institutions. Founded in 1971 by Charles R. Schwab, the company helped popularize discount brokerage services. It expanded its brokerage business with the 2020 acquisition of TD Ameritrade, whose trading platform and services became part of Schwab.

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