Key Points
- Insider Dennis Howard sold 28,000 Charles Schwab shares for approximately $2.94 million at an average price of $105.01. The Rule 10b5-1 transaction reduced his direct ownership by 72.78%, leaving him with 10,470 shares.
- Charles Schwab reported stronger-than-expected quarterly results, with EPS of $1.62 versus the $1.56 consensus and revenue of $7.07 billion versus $6.90 billion. Revenue rose 20.9% year over year.
- The company declared a quarterly dividend of $0.32 per share, equivalent to a 1.2% annualized yield, while analysts maintained a generally positive outlook with a consensus price target of $119.94.
The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) insider Dennis Howard sold 28,000 shares of the firm's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $105.01, for a total transaction of $2,940,280.00. Following the sale, the insider directly owned 10,470 shares of the company's stock, valued at approximately $1,099,454.70. The trade was a 72.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Charles Schwab Stock Performance
Shares of SCHW stock opened at $104.42 on Friday. The Charles Schwab Corporation has a 12 month low of $83.96 and a 12 month 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 has a market capitalization of $181.61 billion, a P/E ratio of 18.99, a P/E/G ratio of 0.80 and a beta of 0.77. The company's fifty day moving average price is $95.03 and its two-hundred day moving average price is $95.42.
Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.06. The company had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a return on equity of 24.73% and a net margin of 38.79%.The company's revenue was up 20.9% on a year-over-year basis. During the same period last year, the firm earned $1.14 earnings per share. On average, research analysts anticipate that The Charles Schwab Corporation will post 6.46 earnings per share for the current fiscal year.
Charles Schwab Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a $0.32 dividend. The ex-dividend date of this dividend 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 currently 23.27%.
Wall Street Analysts Forecast Growth
Several research firms have issued reports on SCHW. UBS Group lifted their price objective on Charles Schwab from $122.00 to $128.00 and gave the stock a "buy" rating in a report on Wednesday, July 22nd. Keefe, Bruyette & Woods initiated coverage on Charles Schwab in a research note on Wednesday, April 8th. They set an "outperform" rating and a $110.00 target price for the company. Weiss Ratings reissued a "buy (b-)" rating on shares of Charles Schwab in a research report on Thursday, June 18th. Barclays lifted their price target on shares of Charles Schwab from $122.00 to $125.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 22nd. Finally, Argus upped their price target on shares of Charles Schwab from $108.00 to $114.00 and gave the company a "buy" rating in a report on Thursday, July 23rd. One 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 given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $119.94.
Check Out Our Latest Analysis on Charles Schwab
Hedge Funds Weigh In On Charles Schwab
Large investors have recently added to or reduced their stakes in the company. Brookwood Investment Group LLC lifted its holdings in Charles Schwab by 192.6% in the fourth quarter. Brookwood Investment Group LLC now owns 12,236 shares of the financial services provider's stock worth $1,222,000 after acquiring an additional 8,054 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Charles Schwab by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider's stock valued at $3,747,646,000 after purchasing an additional 98,242 shares during the last quarter. Juno Financial Group LLC acquired a new stake in shares of Charles Schwab during the 4th quarter worth approximately $2,591,000. Swiss Life Asset Management Ltd raised its position in shares of Charles Schwab by 4.2% during the 4th quarter. Swiss Life Asset Management Ltd now owns 407,179 shares of the financial services provider's stock worth $40,681,000 after purchasing an additional 16,482 shares during the period. Finally, Busey Bank lifted its holdings in shares of Charles Schwab by 15.5% in the 4th quarter. Busey Bank now owns 258,962 shares of the financial services provider's stock worth $25,873,000 after purchasing an additional 34,745 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors.
Key Headlines Impacting Charles Schwab
Here are the key news stories impacting Charles Schwab this week:
- Positive Sentiment: Shareholder returns remain a major catalyst: Schwab reportedly plans to repurchase up to $20 billion of its shares. The buyback could reduce the share count, lift future EPS and signal confidence in the company’s valuation and cash generation. The company also confirmed a quarterly dividend of $0.32 per share, or $1.28 annualized. Charles Schwab to buy back $20 billion of stock
- Positive Sentiment: Strong earnings momentum: Schwab’s latest quarter exceeded expectations, with EPS of $1.62 versus the $1.56 consensus and revenue of $7.07 billion versus $6.90 billion. Revenue increased 20.9% year over year, reinforcing the growth case for the brokerage and wealth-management business. Charles Schwab earnings, buybacks and dividends analysis
- Positive Sentiment: Estimates and technical sentiment improved: Erste Group raised its FY2026 EPS forecast to $6.50 from $6.34 and its FY2027 forecast to $7.85 from $7.64. Commentary also points to a potential breakout and improving retail-investor bullishness, which could support trading activity and brokerage revenue. Schwab stock breakout analysis
- Positive Sentiment: New Austin-area office: Schwab announced a new office location in the Austin region, supporting its client-service and regional growth footprint, though the near-term financial impact is likely limited. Charles Schwab announces new Austin office
- Neutral Sentiment: Robo-adviser shutdown: Schwab is reportedly phasing out its robo-adviser platform. The decision could reduce expenses and sharpen focus on core offerings, but may weaken its appeal to younger, digitally focused investors. Why Charles Schwab is phasing out its robo-adviser
- Negative Sentiment: Large insider sales may weigh on sentiment: Chairman Walter Bettinger sold roughly $29.8 million of shares, while Nigel Murtagh sold approximately $3.4 million and Jonathan Beatty sold about $208,000. The trades were conducted under Rule 10b5-1 plans, making them weaker bearish signals, but their size could encourage profit-taking after SCHW’s recent advance.
Charles Schwab Company Profile
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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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