Charles Schwab (NYSE:SCHW) Announces Quarterly Earnings Results

Key Points

• Charles Schwab beat quarterly earnings expectations: EPS came in at $1.69, exceeding the $1.66 consensus estimate, while revenue increased 16.9% year over year. EPS also rose from $1.31 in the same quarter last year.
• The company maintained its quarterly dividend at $0.32 per share, equivalent to a $1.28 annualized payout and a 1.3% yield.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $119, although several firms recently reduced their targets. Insiders sold roughly 645,582 shares worth $69.6 million over the past 90 days.

Charles Schwab (NYSE:SCHW - Get Free Report) issued its quarterly earnings data on Thursday. The financial services provider reported $1.69 EPS for the quarter, beating analysts' consensus estimates of $1.66 by $0.03, Zacks reports. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%. During the same quarter last year, the business posted $1.31 EPS. The business's revenue was up 16.9% on a year-over-year basis.

Charles Schwab Stock Up 1.1%

Shares of NYSE:SCHW opened at $96.97 on Thursday. The company has a 50 day moving average price of $105.07 and a two-hundred day moving average price of $98.18. 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 capitalization of $167.69 billion, a PE ratio of 17.63, a PEG ratio of 0.81 and a beta of 0.79. Charles Schwab has a 52 week low of $83.96 and a 52 week high of $114.53.

Charles Schwab Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were paid a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $1.28 annualized dividend and a yield of 1.3%. Charles Schwab's dividend payout ratio (DPR) is presently 23.27%.

Insider Buying and Selling

In other Charles Schwab news, Director Paula A. Sneed sold 5,263 shares of Charles Schwab stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $107.15, for a total transaction of $563,930.45. Following the transaction, the director directly owned 91,711 shares in the company, valued at approximately $9,826,833.65. The trade was a 5.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman Walter W. Bettinger sold 192,488 shares of the business's stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $103.90, for a total value of $19,999,503.20. Following the completion of the transaction, the chairman directly owned 529,346 shares of the company's stock, valued at approximately $54,999,049.40. The trade was a 26.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 645,582 shares of company stock worth $69,553,935 over the last ninety days. Insiders own 6.30% of the company's stock.

More Charles Schwab News

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

• Positive Sentiment: Analysts expect solid third-quarter results, with consensus estimates calling for approximately $1.66 in earnings per share and $7.19 billion in revenue. Investors will be watching whether client-asset growth and asset-gathering trends deliver the anticipated earnings acceleration. Charles Schwab Earnings to Spotlight Success at Asset Gathering
• Positive Sentiment: Erste Group Bank raised its fiscal 2027 EPS forecast for Charles Schwab to $7.96 from $7.85, signaling improved expectations for the company’s longer-term earnings outlook. Erste Group Bank Lifts Earnings Estimates for Charles Schwab
• Positive Sentiment: Truist Financial lowered its price target to $125 from $130 but maintained a Buy rating. The revised target still implies substantial upside from recent trading levels, limiting the negative impact of the reduction. Charles Schwab Stock Price Target Cut by Truist Financial
• Neutral Sentiment: Options markets are pricing in a potentially large earnings-related move for SCHW, reflecting heightened uncertainty rather than a clear directional signal. Charles Schwab Could Swing $6.23 Billion After Earnings
• Neutral Sentiment: Evercore ISI initiated coverage with an In-Line rating, while broader market commentary identified Schwab as a potential bargain stock. These views provide valuation context but are unlikely to materially change sentiment ahead of earnings. Evercore ISI Initiates Coverage of Charles Schwab

Analyst Ratings Changes

Several research analysts recently commented on the stock. UBS Group dropped their target price on shares of Charles Schwab from $128.00 to $113.00 and set a "buy" rating on the stock in a report on Wednesday, October 7th. Wolfe Research reiterated an "outperform" rating and set a $127.00 price target on shares of Charles Schwab in a research note on Tuesday, July 21st. Citigroup reiterated a "market outperform" rating on shares of Charles Schwab in a research note on Wednesday, July 22nd. Piper Sandler reduced their price target on shares of Charles Schwab from $118.00 to $100.00 and set a "neutral" rating on the stock in a research report on Friday, October 2nd. Finally, Raymond James Financial restated an "outperform" rating and set a $145.00 target price on shares of Charles Schwab in a report on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $119.00.

About Charles Schwab

Charles Schwab Corporation NYSE: SCHW is a financial services company that provides brokerage, investment, banking and wealth management services to individual investors, employers, institutions and independent investment advisors. Its offerings include online and mobile trading, securities brokerage, retirement accounts, financial planning, portfolio management, banking products, research and access to mutual funds and exchange-traded funds.

The company operates through businesses including Schwab Brokerage, Schwab Wealth Advisory, Schwab Asset Management and Charles Schwab Bank.