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 Stock Performance
Shares of SCHW traded down $1.89 on Friday, reaching $73.86. 5,132,856 shares of the stock traded hands, compared to its average volume of 8,516,829. The stock's 50-day moving average price is $65.30 and its 200-day moving average price is $73.87. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.41 and a quick ratio of 0.41. The firm has a market cap of $134.26 billion, a price-to-earnings ratio of 24.92, a P/E/G ratio of 0.91 and a beta of 1.10. Charles Schwab has a 12 month low of $59.35 and a 12 month high of $96.24.
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 (EPS) for the quarter, beating the consensus estimate of $0.91 by $0.06. Charles Schwab had a net margin of 33.09% and a return on equity of 16.82%. The firm had revenue of $5.09 billion for the quarter, compared to analyst estimates of $5.04 billion. During the same quarter in the previous year, the firm posted $0.70 EPS. The business's revenue for the quarter was up 12.5% on a year-over-year basis. Equities analysts forecast that Charles Schwab will post 3.92 EPS for the current fiscal year.
Charles Schwab Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, August 26th. Investors of record on Friday, August 12th will be given a $0.22 dividend. This represents a $0.88 annualized dividend and a yield of 1.19%. The ex-dividend date is Thursday, August 11th. This is a positive change from Charles Schwab's previous quarterly dividend of $0.20. Charles Schwab's dividend payout ratio is 28.95%.
Analyst Ratings Changes
Several research firms recently weighed in on SCHW. The Goldman Sachs Group assumed coverage on Charles Schwab in a report on Tuesday, April 26th. They issued a "neutral" rating and a $75.00 target price for the company. Deutsche Bank Aktiengesellschaft raised their target price on shares of Charles Schwab from $90.00 to $95.00 in a research note on Friday. UBS Group boosted their target price on shares of Charles Schwab from $75.00 to $82.00 and gave the stock a "buy" rating in a research report on Friday, July 29th. Morgan Stanley lowered their price target on Charles Schwab from $98.00 to $93.00 and set an "overweight" rating on the stock in a research report on Monday, August 1st. Finally, Jefferies Financial Group cut their price objective on Charles Schwab to $95.00 in a research report on Friday, April 22nd. Four research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $92.83.
Insiders Place Their Bets
In other news, Chairman Charles R. Schwab sold 120,000 shares of the company's stock in a transaction that occurred on Wednesday, July 20th. The stock was 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 in the company, valued at approximately $4,456,923,223.50. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In other news, insider Jonathan M. Craig sold 8,032 shares of the company's stock in a transaction dated Friday, August 12th. The shares were sold at an average price of $75.00, for a total value of $602,400.00. Following the sale, the insider now owns 4,019 shares of the company's stock, valued at approximately $301,425. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Chairman Charles R. Schwab sold 120,000 shares of Charles Schwab stock in a transaction dated Wednesday, July 20th. The shares were sold at an average price of $62.70, for a total transaction of $7,524,000.00. Following the transaction, the chairman now directly owns 71,083,305 shares of the company's stock, valued at $4,456,923,223.50. The disclosure for this sale can be found here. Insiders sold a total of 277,632 shares of company stock worth $17,904,256 over the last quarter. Company insiders own 7.50% of the company's stock.
