The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, banking and trust, retirement plan, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor and mutual fund clearing services, as well as compliance solutions. The Advisor Services segment offers custodial, trading, banking, and support services; and retirement business and corporate brokerage retirement services. This segment provides brokerage accounts with equity and fixed income, margin lending, options, and futures and forex trading; cash management capabilities comprising third-party certificates of deposit; third-party and proprietary mutual funds; plus mutual fund trading and clearing services; and exchange-traded funds (ETFs), including proprietary and third-party ETFs. It also offers advice solutions, such as managed portfolios of proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and portfolio management. In addition, this segment provides banking products and services, including checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust services comprising trust custody services, personal trust reporting services, and administrative trustee services. As of December 31, 2021, the Company had approximately 400 domestic branch offices in 48 states and the District of Columbia, as well as locations in Puerto Rico, the United Kingdom, Hong Kong, and Singapore. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas.
Analysts Set New Price Targets
Several equities research analysts have recently commented on SCHW shares. Deutsche Bank Aktiengesellschaft boosted their price target on Charles Schwab from $81.00 to $82.00 in a research note on Tuesday, July 19th. StockNews.com upgraded Charles Schwab from a "sell" rating to a "hold" rating in a research report on Thursday, May 12th. UBS Group lifted their price objective on Charles Schwab from $75.00 to $82.00 and gave the stock a "buy" rating in a research report on Friday, July 29th. Jefferies Financial Group cut their price objective on Charles Schwab to $95.00 in a research report on Friday, April 22nd. Finally, The Goldman Sachs Group initiated coverage on Charles Schwab in a report on Tuesday, April 26th. They issued a "neutral" rating and a $75.00 price target for the company. Four research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $91.75.
Charles Schwab Trading Up 1.3 %
Shares of SCHW Stock opened at $69.94 on Thursday. The stock has a market cap of $127.08 billion, a price-to-earnings ratio of 23.01, a price-to-earnings-growth ratio of 0.83 and a beta of 1.10. The company has a quick ratio of 0.44, a current ratio of 0.44 and a debt-to-equity ratio of 0.58. Charles Schwab has a fifty-two week low of $59.35 and a fifty-two week high of $96.24. The firm's 50 day moving average price is $64.40 and its two-hundred day moving average price is $74.47.
Charles Schwab (NYSE:SCHW - Get Rating) last announced its quarterly earnings results on Monday, July 18th. The financial services provider reported $0.97 earnings per share for the quarter, beating analysts' consensus estimates of $0.91 by $0.06. The firm had revenue of $5.09 billion for the quarter, compared to analysts' expectations of $5.04 billion. Charles Schwab had a net margin of 33.09% and a return on equity of 15.86%. Charles Schwab's revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.70 earnings per share. On average, analysts anticipate that Charles Schwab will post 3.91 EPS for the current year.
Charles Schwab Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 26th. Stockholders of record on Friday, August 12th will be paid a dividend of $0.22 per share. The ex-dividend date is Thursday, August 11th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.26%. This is a positive change from Charles Schwab's previous quarterly dividend of $0.20. Charles Schwab's dividend payout ratio (DPR) is currently 26.32%.
Insider Activity
In other news, Chairman Charles R. Schwab sold 149,600 shares of Charles Schwab stock in a transaction that occurred on Thursday, July 28th. The shares were sold at an average price of $65.36, for a total transaction of $9,777,856.00. Following the sale, the chairman now owns 69,749,230 shares in the company, valued at $4,558,809,672.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In related news, Chairman Charles R. Schwab sold 149,600 shares of Charles Schwab stock in a transaction on Thursday, July 28th. The shares were sold at an average price of $65.36, for a total value of $9,777,856.00. Following the completion of the sale, the chairman now owns 69,749,230 shares in the company, valued at $4,558,809,672.80. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Chairman Charles R. Schwab sold 120,000 shares of Charles Schwab stock in a transaction on Wednesday, July 20th. The stock was sold at an average price of $62.70, for a total transaction of $7,524,000.00. Following the completion of the sale, the chairman now owns 71,083,305 shares of the company's stock, valued at approximately $4,456,923,223.50. The disclosure for this sale can be found here. Insiders own 6.90% of the company's stock.
