Key Points
- Insider sale: General Counsel Peter Morgan III sold 6,952 Charles Schwab shares at an average price of $102.03, totaling approximately $709,313.
- Strong quarterly results: Schwab reported earnings of $1.62 per share, beating estimates by $0.06, while revenue rose 20.9% year over year to $7.07 billion.
- Analysts remain broadly positive: The stock has a consensus “Moderate Buy” rating and an average price target of $119.94, despite one recent downgrade to “Market Perform.”
The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) insider Jonathan Beatty sold 2,000 shares of the firm's stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $104.21, for a total value of $208,420.00. Following the transaction, the insider owned 11,738 shares of the company's stock, valued at $1,223,216.98. This trade represents a 14.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Charles Schwab Stock Up 1.9%
Shares of NYSE:SCHW opened at $106.17 on Wednesday. The firm has a market capitalization of $184.65 billion, a PE ratio of 19.30, a price-to-earnings-growth ratio of 0.84 and a beta of 0.77. The Charles Schwab Corporation has a 1 year low of $83.96 and a 1 year high of $107.50. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62. The firm's 50-day moving average is $94.46 and its two-hundred day moving average is $95.37.
Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, beating the consensus estimate of $1.56 by $0.06. The business had revenue of $7.07 billion during the quarter, compared to analyst estimates of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.73%. The business's revenue for the quarter was up 20.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.14 earnings per share. Analysts predict that The Charles Schwab Corporation will post 6.45 EPS for the current year.
Charles Schwab Dividend Announcement
The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be issued a dividend of $0.32 per share. The ex-dividend date is Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a yield of 1.2%. Charles Schwab's dividend payout ratio is 23.27%.
Wall Street Analyst Weigh In
Several equities analysts have commented on SCHW shares. Weiss Ratings restated a "buy (b-)" rating on shares of Charles Schwab in a research note on Thursday, June 18th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Charles Schwab in a report on Wednesday, July 22nd. Jefferies Financial Group lowered their target price on Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a research note on Monday, April 6th. TD Cowen upped their price target on Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Finally, Truist Financial reduced their price target on Charles Schwab from $122.00 to $120.00 and set a "buy" rating on the stock in a research report on Wednesday, April 1st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Charles Schwab presently has an average rating of "Moderate Buy" and an average target price of $119.94.
View Our Latest Analysis on SCHW
Institutional Investors Weigh In On Charles Schwab
A number of hedge funds and other institutional investors have recently modified their holdings of SCHW. Dogwood Wealth Management LLC grew its stake in shares of Charles Schwab by 99.2% during the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock worth $25,000 after purchasing an additional 123 shares in the last quarter. Piscataqua Savings Bank acquired a new stake in Charles Schwab in the fourth quarter valued at $26,000. Scarborough Advisors LLC acquired a new stake in Charles Schwab in the first quarter valued at $29,000. Optima Capital LLC purchased a new stake in Charles Schwab during the 4th quarter worth about $30,000. Finally, McIlrath & Eck LLC lifted its holdings in Charles Schwab by 143.2% during the 4th quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider's stock worth $32,000 after buying an additional 189 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors and hedge funds.
Key Charles Schwab News
Here are the key news stories impacting Charles Schwab this week:
- Positive Sentiment: Planned $20 billion share repurchase: Charles Schwab reportedly plans to buy back $20 billion of its stock, a substantial capital-allocation commitment that could reduce shares outstanding, support earnings per share and signal management’s confidence in the company’s valuation and cash-generation outlook. Charles Schwab to buy back $20 billion of stock
- Positive Sentiment: Analysts continue to favor SCHW as a growth stock: Charles Schwab was included among analysts’ preferred growth names, reflecting confidence in demand trends and longer-term catalysts. The view is consistent with the company’s latest quarterly performance, which included earnings and revenue above consensus and 20.9% year-over-year revenue growth. Best Growth Stocks to Buy This Week
- Positive Sentiment: Retail investor sentiment is improving: Schwab executive James Kostulias said bullishness among retail traders is rising. Greater investor participation and trading activity could support Schwab’s brokerage-related revenue and asset-gathering trends. Charles Schwab executive discusses rising retail bullishness
- Positive Sentiment: Potential cryptocurrency-regulation tailwind: Schwab reportedly backed the CLARITY Act ahead of an August deadline. Clearer digital-asset rules could help established financial firms expand crypto-related products and services, although the legislation remains subject to the legislative process. Charles Schwab backs the CLARITY Act
- Neutral Sentiment: Commentary highlighting “three big reasons” to favor SCHW and a report on billionaire investor Andreas Halvorsen’s holdings add to positive market attention, but these opinions are not new company fundamentals or formal analyst actions. Three big reasons to favor Charles Schwab Andreas Halvorsen’s top picks
- Negative Sentiment: Several insiders sold shares, including General Counsel Peter J. Morgan III and executives Jonathan S. Beatty and Nigel J. Murtagh. The transactions were made under pre-arranged Rule 10b5-1 plans, reducing their significance as a bearish signal, but they may still create limited investor caution.
About Charles Schwab
(
Get Free Report)
Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.
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