Traders Buy Large Volume of Put Options on Charles Schwab (NYSE:SCHW)

Key Points

• Traders showed bearish positioning in Charles Schwab, buying 38,766 put options on Friday — about 30% above the normal daily volume.
• SCHW shares edged higher to $89.53, but the stock remained below both its 50-day and 200-day moving averages, reflecting recent weakness versus longer-term trends.
• Fundamentals were solid in Schwab’s latest earnings report, with EPS of $1.43 beating estimates and revenue of $6.48 billion topping forecasts, while the company also raised its FY 2026 guidance.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock investors acquired 38,766 put options on the company. This is an increase of 30% compared to the typical daily volume of 29,869 put options.

Charles Schwab Trading Up 0.1%

Shares of SCHW stock traded up $0.09 during trading on Friday, hitting $89.53. 6,012,073 shares of the stock traded hands, compared to its average volume of 11,135,080. The firm has a market capitalization of $155.70 billion, a P/E ratio of 17.78, a price-to-earnings-growth ratio of 0.84 and a beta of 0.77. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62. The firm's fifty day moving average price is $90.46 and its 200-day moving average price is $95.24. Charles Schwab has a 52-week low of $83.96 and a 52-week high of $107.50.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings data on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $6.39 billion. During the same period in the prior year, the business posted $1.04 earnings per share. The firm's revenue for the quarter 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. As a group, research analysts forecast that Charles Schwab will post 6.14 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were given a $0.32 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. Charles Schwab's dividend payout ratio is presently 25.40%.

Insider Buying and Selling

In other Charles Schwab news, insider Paul V. Woolway sold 7,941 shares of the business'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 transaction of $794,100.00. Following the completion of the sale, the insider directly owned 29,866 shares in the company, valued at approximately $2,986,600. The trade was a 21.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 business'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 sale, the director owned 177,508 shares of the company's stock, valued at approximately $16,082,224.80. This trade represents a 1.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 59,700 shares of company stock worth $5,889,131. Insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Charles Schwab

A number of institutional investors have recently made changes to their positions in SCHW. Norges Bank acquired a new stake in Charles Schwab in the 4th quarter valued at approximately $1,994,189,000. Bank of New York Mellon Corp lifted its stake in Charles Schwab by 22.9% during the first 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 in the last quarter. Primecap Management Co. CA boosted its position in shares of Charles Schwab by 11.4% during the third quarter. Primecap Management Co. CA now owns 21,209,187 shares of the financial services provider's stock worth $2,024,841,000 after buying an additional 2,174,381 shares during the period. Focus Partners Wealth lifted its position in shares of Charles Schwab by 716.5% during the fourth 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 in the last quarter. Finally, First Trust Advisors LP boosted its stake in shares of Charles Schwab by 292.7% in the third quarter. First Trust Advisors LP now owns 2,206,320 shares of the financial services provider's stock valued at $210,637,000 after purchasing an additional 1,644,503 shares during the period. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Charles Schwab News Roundup

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

• Positive Sentiment: Charles Schwab reported record core net new assets in May and total client assets hit an all-time high, while the company also rolled out new digital trading tools, including 24/7 cryptocurrency futures trading and added analytics features. Charles Schwab (SCHW) Hits Record Client Assets As New Trading Tools Roll Out
• Positive Sentiment: Analysts continue to point to upside potential for SCHW, with average price targets suggesting meaningful gains and recent model updates lifting fair value slightly after investor day revisions. Charles Schwab (SCHW) Stock Sees Modest Fair Value Lift After Investor Day Revisions
• Positive Sentiment: Pre-earnings commentary suggests analysts expect double-digit earnings growth when Schwab reports second-quarter results, which could support sentiment if results confirm those expectations. Earnings Preview: What to Expect From Charles Schwab's Report
• Neutral Sentiment: Several articles compare SCHW with Robinhood as a value stock, which may keep attention on valuation but does not by itself change fundamentals. SCHW vs. HOOD: Which Stock Is the Better Value Option?
• Neutral Sentiment: Schwab disclosed the results of the Federal Reserve’s 2026 CCAR review, which is an important regulatory update but was not presented as a major surprise in the articles provided. Charles Schwab Discloses Results of the Federal Reserve's 2026 Comprehensive Capital Analysis and Review
• Negative Sentiment: Traders bought an unusually high volume of put options on SCHW, signaling some hedging or bearish positioning ahead of earnings. Unusual options trading activity on Friday

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Argus set a $108.00 price objective on Charles Schwab in a report on Monday, April 20th. Morgan Stanley reduced their target price on shares of Charles Schwab from $135.00 to $125.00 and set an "overweight" rating for the company in a research report on Friday, April 17th. Piper Sandler raised their price target on shares of Charles Schwab from $103.00 to $105.00 and gave the stock a "neutral" rating in a research note on Friday, May 15th. Jefferies Financial Group lowered their price target on shares of Charles Schwab from $122.00 to $118.00 and set a "buy" rating on the stock in a research report on Monday, April 6th. Finally, Keefe, Bruyette & Woods began coverage on shares of Charles Schwab in a research note on Wednesday, April 8th. They set an "outperform" rating and a $110.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Charles Schwab presently has an average rating of "Moderate Buy" and an average target price of $116.00.

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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