Truist Financial Raises Charles Schwab (NYSE:SCHW) Price Target to $112.00

Key Points

• Truist Financial raised the price target for Charles Schwab (NYSE:SCHW) from $107.00 to $112.00, indicating a potential upside of 14.52% from the previous close.
• The company reported earnings of $1.14 per share in its last quarter, surpassing analysts' expectations, with revenues also exceeding estimates at $5.85 billion.
• Charles Schwab has initiated a $20 billion stock buyback program, allowing the repurchase of up to 11.6% of its shares, signaling management’s confidence in the stock's valuation.

Charles Schwab (NYSE:SCHW - Get Free Report) had its price target boosted by stock analysts at Truist Financial from $107.00 to $112.00 in a research report issued on Friday,Benzinga reports. The firm presently has a "buy" rating on the financial services provider's stock. Truist Financial's target price indicates a potential upside of 14.52% from the stock's previous close.

Several other brokerages have also recently weighed in on SCHW. JPMorgan Chase & Co. boosted their price objective on Charles Schwab from $92.00 to $95.00 and gave the stock an "overweight" rating in a research note on Monday, April 21st. TD Securities boosted their target price on Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a research report on Tuesday, May 20th. Keefe, Bruyette & Woods boosted their price objective on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a report on Monday, July 21st. JMP Securities boosted their price objective on Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a report on Monday, July 21st. Finally, Morgan Stanley boosted their price objective on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a report on Tuesday, July 29th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and sixteen have assigned a buy rating to the company's stock. Based on data from MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and an average target price of $99.60.

Charles Schwab Trading Up 2.3%

Charles Schwab stock opened at $97.80 on Friday. Charles Schwab has a one year low of $61.16 and a one year high of $99.59. The business's fifty day moving average is $92.93 and its 200 day moving average is $84.79. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.53. The stock has a market capitalization of $177.53 billion, a PE ratio of 26.29, a price-to-earnings-growth ratio of 0.92 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. The firm had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%. The business's quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.73 earnings per share. On average, sell-side analysts predict that Charles Schwab will post 4.22 EPS for the current year.

Charles Schwab announced that its board has approved a stock buyback program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In related news, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the completion of the transaction, the chairman directly owned 590,734 shares in the company, valued at approximately $58,388,148.56. This trade represents a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Paula A. Sneed sold 8,647 shares of the firm's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $88.06, for a total value of $761,454.82. Following the completion of the sale, the director owned 105,654 shares in the company, valued at approximately $9,303,891.24. This represents a 7.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 308,016 shares of company stock worth $29,341,433. Corporate insiders own 6.30% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in SCHW. Norges Bank acquired a new position in Charles Schwab during the second quarter worth about $1,889,858,000. Vanguard Group Inc. increased its stake in Charles Schwab by 15.4% during the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after acquiring an additional 19,817,022 shares during the last quarter. Wellington Management Group LLP lifted its position in Charles Schwab by 595.7% during the first quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock valued at $1,212,461,000 after buying an additional 13,262,309 shares in the last quarter. Primecap Management Co. CA raised its stake in shares of Charles Schwab by 229.3% during the first quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock valued at $1,096,083,000 after purchasing an additional 9,749,728 shares during the period. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of Charles Schwab by 12.3% during the first quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock valued at $6,422,795,000 after purchasing an additional 8,954,248 shares during the period. 84.38% of the stock is 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.

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