William Blair Predicts 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) - Investment analysts at William Blair issued their Q1 2027 earnings per share estimates for Charles Schwab in a research note issued on Thursday, August 14th. William Blair analyst J. Schmitt anticipates that the financial services provider will earn $1.34 per share 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.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted 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 during the quarter, compared to analyst estimates of $5.64 billion. During the same quarter last year, the firm earned $0.73 earnings per share. The company's revenue for the quarter was up 24.8% compared to the same quarter last year.

Several other analysts also recently issued reports on the company. Citigroup raised their price target on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Barclays raised their target price on Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. JPMorgan Chase & Co. raised their target price on Charles Schwab from $92.00 to $95.00 and gave the company an "overweight" rating in a research report on Monday, April 21st. Keefe, Bruyette & Woods raised their target price on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research report on Monday, July 21st. Finally, Morgan Stanley raised their target price on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $99.60.

Charles Schwab Stock Down 1.2%

SCHW traded down $1.14 on Friday, reaching $96.64. The company's stock had a trading volume of 2,973,240 shares, compared to its average volume of 10,026,137. The stock has a market cap of $175.43 billion, a price-to-earnings ratio of 25.93, a price-to-earnings-growth ratio of 0.92 and a beta of 0.96. Charles Schwab has a 1 year low of $61.16 and a 1 year high of $99.59. 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 business's 50 day moving average is $92.93 and its 200 day moving average is $84.79.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Princeton Global Asset Management LLC bought a new stake in shares of Charles Schwab during the 2nd quarter valued at $25,000. RMG Wealth Management LLC bought a new stake in shares of Charles Schwab during the 2nd quarter valued at $27,000. Atwood & Palmer Inc. bought a new stake in shares of Charles Schwab during the 1st quarter valued at $25,000. Mid American Wealth Advisory Group Inc. bought a new stake in shares of Charles Schwab during the 2nd quarter valued at $32,000. Finally, Westside Investment Management Inc. raised its position in shares of Charles Schwab by 75.0% during the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 150 shares during the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the sale, the chairman directly owned 590,734 shares of the company's stock, valued at approximately $58,388,148.56. The trade was a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jonathan M. Craig sold 47,500 shares of Charles Schwab stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $88.46, for a total value of $4,201,850.00. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 308,016 shares of company stock valued at $29,341,433. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Dividend Announcement

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

Charles Schwab announced that its Board of Directors has approved a stock repurchase plan on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.