Charles Schwab (NYSE:SCHW) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley has increased its price objective for Charles Schwab stock from $117.00 to $131.00, indicating a potential upside of 33.81% from the previous close.
• Charles Schwab reported quarterly earnings of $1.14 EPS, surpassing analyst expectations of $1.10, with revenue of $5.85 billion, reflecting a 24.8% year-over-year increase.
• The company has authorized a stock repurchase plan to buy back up to $20 billion in outstanding shares, signaling management's belief that the stock is undervalued.

Charles Schwab (NYSE:SCHW - Free Report) had its price objective hoisted by Morgan Stanley from $117.00 to $131.00 in a report released on Tuesday morning,Benzinga reports. The brokerage currently has an overweight rating on the financial services provider's stock.

SCHW has been the topic of a number of other reports. Truist Financial lifted their price objective on shares of Charles Schwab from $100.00 to $107.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Raymond James Financial reiterated an "outperform" rating and issued a $99.00 price objective on shares of Charles Schwab in a research report on Friday, July 18th. JPMorgan Chase & Co. increased their price objective on Charles Schwab from $92.00 to $95.00 and gave the stock an "overweight" rating in a research report on Monday, April 21st. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and increased their price objective for the stock from $65.00 to $82.00 in a research report on Monday, June 9th. Finally, Citigroup increased their price objective on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have issued a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $99.35.

Charles Schwab Stock Performance

Shares of SCHW stock traded down $2.16 during trading hours on Tuesday, hitting $95.57. The stock had a trading volume of 9,790,479 shares, compared to its average volume of 8,649,078. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.53 and a quick ratio of 0.53. The stock's 50 day moving average is $91.28 and its 200 day moving average is $83.66. Charles Schwab has a twelve month low of $61.15 and a twelve month high of $99.59. The firm has a market capitalization of $173.65 billion, a PE ratio of 25.69, a PEG ratio of 0.94 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.73%. The firm had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same period last year, the firm posted $0.73 EPS. Charles Schwab's quarterly revenue was up 24.8% on a year-over-year basis. As a group, research analysts forecast that Charles Schwab will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 8th will be paid a dividend of $0.27 per share. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Charles Schwab announced that its board has approved a share repurchase 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 buy up to 11.6% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Charles Schwab

In related news, insider Jonathan S. Beatty sold 2,850 shares of the stock in a transaction on Friday, May 30th. The stock was sold at an average price of $87.57, for a total transaction of $249,574.50. Following the sale, the insider owned 15,219 shares of the company's stock, valued at $1,332,727.83. This trade represents a 15.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Nigel J. Murtagh sold 24,096 shares of the stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the sale, the insider directly owned 58,999 shares in the company, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 304,726 shares of company stock valued at $29,025,396. 6.30% of the stock is owned by company insiders.

Institutional Trading of Charles Schwab

A number of large investors have recently made changes to their positions in SCHW. Atwood & Palmer Inc. acquired a new stake in Charles Schwab in the 1st quarter worth about $25,000. Princeton Global Asset Management LLC acquired a new stake in Charles Schwab in the 2nd quarter worth about $25,000. Westside Investment Management Inc. boosted its stake in Charles Schwab by 75.0% in the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock worth $27,000 after buying an additional 150 shares during the last quarter. RMG Wealth Management LLC acquired a new stake in Charles Schwab in the 2nd quarter worth about $27,000. Finally, CBIZ Investment Advisory Services LLC boosted its stake in Charles Schwab by 97.9% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 386 shares of the financial services provider's stock worth $30,000 after buying an additional 191 shares during the last quarter. Institutional investors and hedge funds 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.