JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Charles Schwab (NYSE:SCHW) Stock

Key Points

• JPMorgan Chase & Co. raised its price target for Charles Schwab (SCHW) from $119.00 to $121.00, indicating a potential upside of 26.90% from its current price.
• Charles Schwab reported quarterly earnings of $1.31 per share, exceeding expectations and showing a revenue increase of 26.6% year-over-year.
• The company has initiated a $20 billion stock buyback program, signaling confidence in its valuation and intent to return capital to shareholders.

Charles Schwab (NYSE:SCHW - Get Free Report) had its price objective lifted by research analysts at JPMorgan Chase & Co. from $119.00 to $121.00 in a research note issued on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 26.90% from the company's current price.

Other equities analysts have also recently issued reports about the stock. JMP Securities reaffirmed a "market outperform" rating and set a $110.00 price target on shares of Charles Schwab in a research note on Friday. Weiss Ratings reissued a "hold (c+)" rating on shares of Charles Schwab in a research note on Wednesday, October 8th. Zacks Research cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 17th. Piper Sandler reissued a "neutral" rating on shares of Charles Schwab in a research note on Tuesday, October 14th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $99.00 price objective on shares of Charles Schwab in a research note on Friday, July 18th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $106.00.

Charles Schwab Price Performance

Shares of NYSE:SCHW traded up $1.21 on Monday, reaching $95.35. 1,962,087 shares of the company were exchanged, compared to its average volume of 9,878,786. 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 1-year low of $65.88 and a 1-year high of $99.59. The firm has a market cap of $173.08 billion, a price-to-earnings ratio of 22.32, a price-to-earnings-growth ratio of 0.88 and a beta of 0.97. The company has a 50-day moving average of $94.68 and a 200-day moving average of $89.76.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings results on Thursday, October 16th. The financial services provider reported $1.31 earnings per share for the quarter, topping analysts' consensus estimates of $1.25 by $0.06. Charles Schwab had a net margin of 35.93% and a return on equity of 21.26%. The business had revenue of $6.14 billion for the quarter, compared to analysts' expectations of $5.93 billion. During the same period in the prior year, the company posted $0.71 EPS. The business's revenue for the quarter was up 26.6% on a year-over-year basis. Equities analysts forecast that Charles Schwab will post 4.22 earnings per share for the current fiscal year.

Charles Schwab announced that its board has initiated a stock buyback program on Thursday, July 24th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 11.6% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Paul V. Woolway sold 3,205 shares of the firm's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $93.33, for a total transaction of $299,122.65. Following the sale, the insider directly owned 34,778 shares of the company's stock, valued at $3,245,830.74. This trade represents a 8.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Nigel J. Murtagh sold 24,096 shares of the stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the transaction, the insider owned 58,999 shares in the company, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 267,128 shares of company stock worth $26,232,077 over the last three months. Company insiders own 6.30% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of SCHW. Brighton Jones LLC lifted its holdings in shares of Charles Schwab by 380.5% during the 4th quarter. Brighton Jones LLC now owns 24,240 shares of the financial services provider's stock worth $1,794,000 after acquiring an additional 19,195 shares during the period. GAMMA Investing LLC raised its holdings in Charles Schwab by 28.2% in the first quarter. GAMMA Investing LLC now owns 27,122 shares of the financial services provider's stock valued at $2,123,000 after buying an additional 5,973 shares during the period. Live Oak Private Wealth LLC raised its holdings in Charles Schwab by 0.6% in the first quarter. Live Oak Private Wealth LLC now owns 221,476 shares of the financial services provider's stock valued at $17,337,000 after buying an additional 1,384 shares during the period. Brown Lisle Cummings Inc. raised its holdings in Charles Schwab by 17.9% in the first quarter. Brown Lisle Cummings Inc. now owns 19,543 shares of the financial services provider's stock valued at $1,530,000 after buying an additional 2,968 shares during the period. Finally, JFS Wealth Advisors LLC raised its holdings in Charles Schwab by 0.9% in the first quarter. JFS Wealth Advisors LLC now owns 25,251 shares of the financial services provider's stock valued at $1,977,000 after buying an additional 226 shares during the period. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.