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 research firms have commented on SCHW. Jefferies Financial Group reduced their price objective on Charles Schwab to $95.00 in a report on Friday, April 22nd. Morgan Stanley lowered their target price on Charles Schwab from $98.00 to $93.00 and set an "overweight" rating on the stock in a report on Monday, August 1st. Redburn Partners began coverage on Charles Schwab in a research report on Thursday, June 23rd. They issued a "neutral" rating on the stock. Citigroup increased their target price on Charles Schwab from $87.50 to $90.00 and gave the company a "buy" rating in a report on Friday, April 22nd. Finally, Deutsche Bank Aktiengesellschaft increased their target price on shares of Charles Schwab from $83.00 to $90.00 and gave the stock a "buy" rating in a research note on Friday. Four research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $92.42.
Charles Schwab Stock Up 0.0 %
SCHW Stock traded up $0.02 during mid-day trading on Monday, hitting $75.02. 13,915 shares of the company were exchanged, compared to its average volume of 8,467,604. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.41 and a current ratio of 0.41. Charles Schwab has a 1-year low of $59.35 and a 1-year high of $96.24. The firm has a market cap of $136.37 billion, a P/E ratio of 24.67, a P/E/G ratio of 0.90 and a beta of 1.10. The firm's 50 day simple moving average is $64.53 and its 200 day simple moving average is $74.01.
Charles Schwab (NYSE:SCHW - Get Rating) last posted its quarterly earnings results on Monday, July 18th. The financial services provider reported $0.97 EPS for the quarter, beating analysts' consensus estimates of $0.91 by $0.06. Charles Schwab had a return on equity of 16.82% and a net margin of 33.09%. The business had revenue of $5.09 billion during the quarter, compared to the consensus estimate of $5.04 billion. During the same quarter in the previous year, the firm earned $0.70 earnings per share. Charles Schwab's revenue for the quarter was up 12.5% compared to the same quarter last year. On average, sell-side analysts predict that Charles Schwab will post 3.91 EPS for the current fiscal year.
Charles Schwab Increases Dividend
The business also recently announced a quarterly dividend, which will be paid on Friday, August 26th. Shareholders of record on Friday, August 12th will be paid a $0.22 dividend. The ex-dividend date of this dividend is Thursday, August 11th. This represents a $0.88 annualized dividend and a yield of 1.17%. This is an increase from Charles Schwab's previous quarterly dividend of $0.20. Charles Schwab's dividend payout ratio (DPR) is currently 28.95%.
Insider Activity
In other news, Chairman Charles R. Schwab sold 149,600 shares of the business's stock in a transaction that occurred on Thursday, July 28th. The stock was sold at an average price of $65.36, for a total transaction of $9,777,856.00. Following the transaction, 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 legal filing with the Securities & Exchange Commission, which is available through this link. In other news, Chairman Charles R. Schwab sold 120,000 shares of the company's stock in a transaction dated 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 completion of the transaction, the chairman now owns 71,083,305 shares of the company's stock, valued at $4,456,923,223.50. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, 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 completion of the sale, the chairman now directly owns 69,749,230 shares of the company's stock, valued at $4,558,809,672.80. The disclosure for this sale can be found here. Corporate insiders own 6.90% of the company's stock.
