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

Key Points

• Charles Schwab has received a consensus analyst rating of "Moderate Buy" from 21 brokerages, with an average 12-month price target of $116.
• The company posted solid quarterly results, beating EPS and revenue estimates, while also reporting 15.8% year-over-year revenue growth and setting FY 2026 EPS guidance at 5.700–5.800.
• Recent activity around the stock has been mixed: insiders have sold shares in recent months, but institutional ownership remains high at 84.38%, and recent news highlighted record monthly activity and strong client/trading momentum.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the twenty-one brokerages that are covering the stock, MarketBeat reports. One analyst has rated the stock with a sell rating, three have assigned a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $116.00.

A number of research analysts have commented on the company. Morgan Stanley reduced their target price on Charles Schwab from $135.00 to $125.00 and set an "overweight" rating on the stock in a report on Friday, April 17th. Weiss Ratings raised Charles Schwab from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 23rd. Truist Financial reduced their target price on Charles Schwab from $122.00 to $120.00 and set a "buy" rating on the stock in a report on Wednesday, April 1st. TD Cowen increased their target price on Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Finally, Keefe, Bruyette & Woods assumed coverage on Charles Schwab in a report on Wednesday, April 8th. They set an "outperform" rating and a $110.00 target price on the stock.

Insider Buying and Selling

In related news, insider Paul V. Woolway sold 7,941 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $100.00, for a total value of $794,100.00. Following the sale, the insider owned 29,866 shares of the company's stock, valued at approximately $2,986,600. This trade represents a 21.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $90.60, for a total value of $228,312.00. Following the completion of the sale, the director directly owned 177,508 shares in the company, valued at approximately $16,082,224.80. This trade represents a 1.40% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 59,700 shares of company stock valued at $5,889,131. Insiders own 6.30% of the company's stock.

Institutional Trading of Charles Schwab

Several hedge funds have recently made changes to their positions in SCHW. Norges Bank bought a new stake in shares of Charles Schwab in the 4th quarter worth approximately $1,994,189,000. Bank of New York Mellon Corp lifted its holdings in shares of Charles Schwab by 22.9% in the 1st quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider's stock worth $1,518,913,000 after purchasing an additional 3,009,884 shares during the last quarter. Primecap Management Co. CA lifted its holdings in shares of Charles Schwab by 11.4% in the 3rd quarter. Primecap Management Co. CA now owns 21,209,187 shares of the financial services provider's stock worth $2,024,841,000 after purchasing an additional 2,174,381 shares during the last quarter. Focus Partners Wealth lifted its holdings in shares of Charles Schwab by 716.5% in the 4th quarter. Focus Partners Wealth now owns 2,101,463 shares of the financial services provider's stock worth $209,948,000 after purchasing an additional 1,844,095 shares during the last quarter. Finally, Mondrian Investment Partners LTD bought a new stake in shares of Charles Schwab in the 3rd quarter worth approximately $169,104,000. Institutional investors own 84.38% of the company's stock.

Key Charles Schwab News

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

• Positive Sentiment: Schwab reported monthly activity highlights for May, and the company said the month set records, reinforcing confidence in client growth and trading momentum. Schwab Reports Monthly Activity Highlights
• Positive Sentiment: Market commentary says the stock is also getting a lift from a broader rebound in financials and renewed investor focus on Schwab’s strong client and trading trends. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum
• Positive Sentiment: Recent analyst actions have been constructive, with firms raising earnings estimates and maintaining buy-style ratings, which supports the bullish setup for SCHW. Charles Schwab stock research page
• Neutral Sentiment: Schwab also announced the closure and liquidation of its Schwab Ariel Opportunities ETF, a fund-level action that appears unlikely to materially affect the parent company’s near-term stock performance. Schwab Asset Management Announces Closure and Liquidation of the Schwab Ariel Opportunities ETF (SAEF)
• Negative Sentiment: There is still some caution in the background from mixed institutional positioning and heavy insider selling over the past six months, which could limit upside if sentiment weakens. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum

Charles Schwab Trading Up 2.6%

NYSE:SCHW opened at $91.04 on Friday. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.48. The business's 50 day moving average is $91.05 and its two-hundred day moving average is $95.25. Charles Schwab has a 52 week low of $83.96 and a 52 week high of $107.50. The company has a market cap of $158.32 billion, a PE ratio of 18.06, a P/E/G ratio of 0.86 and a beta of 0.77.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Thursday, April 16th. The financial services provider reported $1.43 EPS for the quarter, topping analysts' consensus estimates of $1.39 by $0.04. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The company had revenue of $6.48 billion for the quarter, compared to the consensus estimate of $6.39 billion. During the same quarter last year, the business posted $1.04 EPS. Charles Schwab's quarterly revenue was up 15.8% compared to the same quarter last year. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. On average, analysts predict that Charles Schwab will post 6.13 EPS for the current year.

Charles Schwab Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were issued a $0.32 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. Charles Schwab's dividend payout ratio (DPR) is 25.40%.

Charles Schwab Company Profile

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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