The Charles Schwab Corporation (NYSE:SCHW) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is broadly positive: Twenty-one brokerages give Charles Schwab a consensus “Moderate Buy” rating, including 17 buys and one strong buy. The average 12-month price target is approximately $120.78, above the reported share price of $105.39.
• Schwab exceeded quarterly expectations: The company reported EPS of $1.62 versus the $1.56 consensus and revenue of $7.07 billion versus $6.90 billion expected, with revenue increasing 20.9% year over year.
• Shareholder returns and insider activity are both notable: Schwab declared a quarterly dividend of $0.32 per share, while insiders sold 363,848 shares worth approximately $37.9 million over the past three months; institutional investors own 84.38% of the stock.

Shares of The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twenty-one ratings firms that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, two have issued a hold recommendation, seventeen have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $120.7778.

SCHW has been the topic of a number of recent analyst reports. Zacks Research upgraded Charles Schwab from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 9th. Argus upped their target price on Charles Schwab from $108.00 to $114.00 and gave the company a "buy" rating in a report on Thursday, July 23rd. Piper Sandler set a $118.00 price target on Charles Schwab in a research note on Tuesday, July 21st. Jefferies Financial Group cut their price target on shares of Charles Schwab from $122.00 to $118.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Finally, Citigroup reissued a "market outperform" rating on shares of Charles Schwab in a research report on Wednesday, July 22nd.

Insider Activity at Charles Schwab

In related news, 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 transaction of $19,999,503.20. Following the transaction, the chairman owned 529,346 shares in the company, valued at $54,999,049.40. The trade was a 26.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Nigel J. Murtagh sold 32,947 shares of the firm's stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $104.01, for a total transaction of $3,426,817.47. Following the completion of the sale, the insider owned 57,972 shares of the company's stock, valued at $6,029,667.72. This trade represents a 36.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 363,848 shares of company stock valued at $37,874,706 over the last three months. Corporate insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Charles Schwab

Several hedge funds have recently made changes to their positions in the company. State Street Corp lifted its position in Charles Schwab by 1.0% during 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 buying an additional 691,671 shares during the period. Geode Capital Management LLC boosted its holdings 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 valued at $3,747,646,000 after buying an additional 98,242 shares in the last quarter. Franklin Resources Inc. grew its position 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 worth $3,015,720,000 after buying an additional 78,020 shares during the period. 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 worth $2,325,512,000 after buying an additional 2,066,884 shares during the period. Finally, Fisher Asset Management LLC increased its stake in shares of Charles Schwab by 0.8% in 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 currently owned by institutional investors.

Charles Schwab Stock Performance

Charles Schwab stock opened at $105.39 on Monday. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.48. The firm has a market cap of $183.30 billion, a P/E ratio of 19.16, a P/E/G ratio of 0.80 and a beta of 0.76. Charles Schwab has a 1-year low of $83.96 and a 1-year high of $107.50. The firm has a 50-day moving average of $95.33 and a 200-day moving average of $95.45.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.56 by $0.06. The company had revenue of $7.07 billion for the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a return on equity of 24.73% and a net margin of 38.79%.Charles Schwab's revenue was up 20.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.14 EPS. Sell-side analysts expect that Charles Schwab will post 6.46 EPS for the current year.

Charles Schwab Dividend Announcement

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

More Charles Schwab News

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

• Positive Sentiment: Earnings and growth remain key catalysts: Schwab’s latest quarter produced EPS of $1.62 versus the $1.56 consensus, while revenue reached $7.07 billion, exceeding estimates of $6.90 billion and rising 20.9% year over year. The results support expectations for continued growth in brokerage, banking and wealth-management activity. Charles Schwab earnings, buybacks and dividends analysis
• Positive Sentiment: Buybacks and dividends support shareholder returns: Schwab reportedly plans to repurchase as much as $20 billion of stock, which could reduce the share count and boost future EPS. The company also confirmed a quarterly dividend of $0.32 per share, reinforcing the income appeal. Charles Schwab to buy back $20 billion of stock
• Positive Sentiment: Analyst outlook is favorable: Erste Group raised its FY2026 EPS estimate to $6.50 from $6.34, while multiple firms recently increased price targets. The consensus remains “Moderate Buy,” with an average target of $119.94, above recent trading levels.
• Neutral Sentiment: Strategic positioning has mixed implications: Schwab’s Austin-area office expansion may strengthen client service but is unlikely to materially affect near-term results. Its reported robo-adviser exit could lower costs and focus resources on core businesses, while potentially reducing appeal to younger digital investors. Schwab’s involvement in securities-tokenization initiatives also offers longer-term optionality, though the immediate financial impact is uncertain. Charles Schwab announces new Austin office
• Negative Sentiment: Large insider sales may temper enthusiasm: Chairman Walter Bettinger sold roughly $29.8 million of shares, while other executives sold millions more, including Dennis Howard’s $2.94 million transaction and Nigel Murtagh’s $3.43 million sale. The trades were made under pre-arranged Rule 10b5-1 plans, reducing their bearish significance, but the scale may encourage profit-taking after SCHW’s advance. Charles Schwab insider selling

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.

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