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.
Charles Schwab Trading Up 3.3 %
Shares of SCHW traded up $2.43 on Friday, hitting $75.00. 15,009,817 shares of the stock traded hands, compared to its average volume of 7,802,601. Charles Schwab has a 1 year low of $59.35 and a 1 year high of $96.24. The stock's 50 day moving average is $64.53 and its two-hundred day moving average is $74.23. The firm has a market capitalization of $136.33 billion, a P/E ratio of 24.67, a P/E/G ratio of 0.87 and a beta of 1.10. The company has a quick ratio of 0.44, a current ratio of 0.41 and a debt-to-equity ratio of 0.62.
Charles Schwab (NYSE:SCHW - Get Rating) last issued its quarterly earnings results on Monday, July 18th. The financial services provider reported $0.97 earnings per share for the quarter, topping analysts' consensus estimates of $0.91 by $0.06. The company had revenue of $5.09 billion for the quarter, compared to analyst estimates of $5.04 billion. Charles Schwab had a return on equity of 16.82% and a net margin of 33.09%. The business's revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.70 EPS. As a group, sell-side analysts predict that Charles Schwab will post 3.91 earnings per share for the current year.
Charles Schwab Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, August 26th. Shareholders of record on Friday, August 12th will be issued a $0.22 dividend. This is a boost from Charles Schwab's previous quarterly dividend of $0.20. The ex-dividend date is Thursday, August 11th. This represents a $0.88 annualized dividend and a yield of 1.17%. Charles Schwab's payout ratio is 28.95%.
Analyst Upgrades and Downgrades
A number of research analysts have issued reports on SCHW shares. UBS Group increased their target price on shares of Charles Schwab from $75.00 to $82.00 and gave the company a "buy" rating in a report on Friday, July 29th. Morgan Stanley reduced their price objective on Charles Schwab from $98.00 to $93.00 and set an "overweight" rating for the company in a report on Monday, August 1st. Piper Sandler lowered their target price on Charles Schwab from $110.00 to $100.00 and set an "overweight" rating on the stock in a report on Friday, April 22nd. Citigroup lifted their price target on Charles Schwab from $87.50 to $90.00 and gave the stock a "buy" rating in a research note on Friday, April 22nd. Finally, Jefferies Financial Group lowered their price objective on shares of Charles Schwab to $95.00 in a research note on Friday, April 22nd. Four investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $92.42.
Insider Activity
In related news, Chairman Charles R. Schwab sold 149,600 shares of the firm's stock in a transaction that occurred 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 sale, the chairman now directly owns 69,749,230 shares of the company's stock, valued at $4,558,809,672.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In related news, Chairman Charles R. Schwab sold 149,600 shares of the stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $65.36, for a total value of $9,777,856.00. Following the transaction, the chairman now directly owns 69,749,230 shares of the company's stock, valued at approximately $4,558,809,672.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Chairman Charles R. Schwab sold 120,000 shares of the business's stock in a transaction dated Wednesday, July 20th. The shares were sold at an average price of $62.70, for a total value of $7,524,000.00. Following the sale, the chairman now directly 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. Corporate insiders own 7.50% of the company's stock.
