William Blair Comments on Charles Schwab Q1 Earnings

Key Points

• William Blair has projected Charles Schwab's Q1 2027 earnings per share at $1.34, maintaining a "Hold" rating on the stock, with a full-year earnings consensus estimate of $4.22 per share.
• Charles Schwab recently reported Q2 earnings of $1.14 per share, exceeding analysts' estimates, with a year-over-year revenue increase of 24.8%.
• The company announced a $20 billion stock repurchase plan, which suggests the board believes the stock is currently undervalued.

The Charles Schwab Corporation (NYSE:SCHW - Free Report) - Equities research analysts at William Blair issued their Q1 2027 earnings per share (EPS) estimates for shares of Charles Schwab in a research report issued on Thursday, August 14th. William Blair analyst J. Schmitt forecasts that the financial services provider will post earnings per share of $1.34 for the quarter. William Blair has a "Hold" rating on the stock. The consensus estimate for Charles Schwab's current full-year earnings is $4.22 per share. William Blair also issued estimates for Charles Schwab's Q2 2027 earnings at $1.45 EPS.

SCHW has been the subject of a number of other reports. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and raised their price target for the company from $65.00 to $82.00 in a research note on Monday, June 9th. Piper Sandler raised their price target on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. TD Securities raised their price target on Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a research note on Tuesday, May 20th. Keefe, Bruyette & Woods raised their price target on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. Finally, Bank of America lifted their target price on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research note on Monday, July 21st. Sixteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $99.60.

Charles Schwab Stock Down 0.3%

SCHW stock traded down $0.3220 during mid-day trading on Friday, reaching $95.4380. The company had a trading volume of 9,432,184 shares, compared to its average volume of 10,024,396. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The stock has a 50 day simple moving average of $93.40 and a two-hundred day simple moving average of $85.09. The company has a market capitalization of $173.24 billion, a price-to-earnings ratio of 25.66, a PEG ratio of 0.92 and a beta of 0.96. Charles Schwab has a 52 week low of $61.16 and a 52 week high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same quarter last year, the firm earned $0.73 EPS. Charles Schwab's revenue for the quarter was up 24.8% compared to the same quarter last year.

Charles Schwab Announces Dividend

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

Charles Schwab announced that its Board of Directors has authorized a stock repurchase plan on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at Charles Schwab

In related news, insider Jonathan S. Beatty sold 2,850 shares of the business's 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 in the company, valued at $1,332,727.83. The trade was a 15.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Paula A. Sneed sold 8,647 shares of the business's stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $88.06, for a total value of $761,454.82. Following the sale, the director owned 105,654 shares in the company, valued at $9,303,891.24. This represents a 7.57% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 260,516 shares of company stock worth $25,139,583 over the last three months. 6.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Charles Schwab

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Princeton Global Asset Management LLC acquired a new stake in shares of Charles Schwab in the second quarter valued at about $25,000. RMG Wealth Management LLC acquired a new stake in shares of Charles Schwab in the second quarter valued at about $27,000. Atwood & Palmer Inc. acquired a new stake in shares of Charles Schwab in the first quarter valued at about $25,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Charles Schwab in the second quarter valued at about $32,000. Finally, Westside Investment Management Inc. increased its stake in shares of Charles Schwab by 75.0% in the first quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after buying an additional 150 shares during the period. Institutional investors own 84.38% of the company's stock.

About Charles Schwab

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.