Key Points
- Chairman Walter Bettinger sold 176,210 Charles Schwab shares at an average price of $113.49, generating nearly $20 million and reducing his ownership by 22.4% to 610,360 shares.
- Schwab reported quarterly earnings of $1.62 per share and revenue of $7.07 billion, beating analyst expectations; revenue increased 20.9% year over year.
- Analysts maintain a “Moderate Buy” consensus with an average price target of $121.17, while the company’s quarterly dividend is $0.32 per share, yielding approximately 1.2%.
The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) Chairman Walter Bettinger sold 176,210 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $113.49, for a total transaction of $19,998,072.90. Following the sale, the chairman owned 610,360 shares of the company's stock, valued at $69,269,756.40. This trade represents a 22.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.
Charles Schwab Price Performance
Charles Schwab stock opened at $109.55 on Thursday. The Charles Schwab Corporation has a 12 month low of $83.96 and a 12 month high of $114.53. The stock's 50 day moving average is $102.72 and its 200-day moving average is $96.27. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $189.45 billion, a price-to-earnings ratio of 19.92, a PEG ratio of 0.84 and a beta of 0.76.
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, topping analysts' consensus estimates of $1.56 by $0.06. The company had revenue of $7.07 billion for the quarter, compared to analyst estimates of $6.90 billion. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%.The firm's quarterly revenue was up 20.9% compared to the same quarter last year. During the same quarter last year, the company earned $1.14 earnings per share. Equities research analysts expect that The Charles Schwab Corporation will post 6.46 EPS for the current year.
Charles Schwab Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be given a dividend of $0.32 per share. The ex-dividend date is Friday, August 14th. This represents a $1.28 annualized dividend and a yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is presently 23.27%.
Analyst Ratings Changes
A number of equities research analysts have recently issued reports on the stock. Morgan Stanley boosted their target price on shares of Charles Schwab from $133.00 to $136.00 and gave the company an "overweight" rating in a research report on Monday, July 27th. Raymond James Financial reaffirmed an "outperform" rating and set a $145.00 price target on shares of Charles Schwab in a research report on Wednesday, July 22nd. TD Cowen lifted their price objective on shares of Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Compass Point started coverage on shares of Charles Schwab in a report on Monday, August 3rd. They issued a "buy" rating and a $135.00 price objective for the company. Finally, Barclays increased their target price on shares of Charles Schwab from $122.00 to $125.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 22nd. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $121.17.
Read Our Latest Stock Report on SCHW
Key Charles Schwab News
Here are the key news stories impacting Charles Schwab this week:
- Positive Sentiment: OneVest launched on Schwab’s digital account-opening API, including a flexible “headless” option for wealth-management firms. The integration could expand Schwab’s advisor-services technology ecosystem and make its platform more attractive to fintech partners. OneVest Goes Live on Schwab's Digital Account Opening API
- Positive Sentiment: Recent brokerage-stock comparisons highlight Schwab’s scale, diversified revenue base and improving earnings profile. Its valuation is viewed as more reasonable than Interactive Brokers’ despite IBKR’s faster growth, reinforcing the potential appeal of SCHW to value-oriented investors. Schwab vs. Interactive Brokers: Which Brokerage Stock is a Better Buy?
- Neutral Sentiment: Commentary expects market volatility to rise later this year while the VIX remains historically subdued. Higher volatility could increase trading activity and options interest, but the articles primarily frame options as a trading strategy rather than a direct earnings catalyst for Schwab. Markets May Soon Turn Rocky. Time to Trade Schwab Stock.
- Negative Sentiment: Vanguard’s planned $4 billion acquisition of Altruist increases competitive pressure in digital wealth management, a market where Vanguard, Fidelity and Schwab are already competing for advisors and assets. Vanguard Takes On Fidelity, Charles Schwab With $4 Billion Altruist Deal
- Negative Sentiment: Investors appear to be taking profits after Schwab’s strong earnings, rally and recent one-year high. Because earnings and bank-sweep balances are sensitive to interest rates, changing rate expectations and bond-market moves are adding pressure. Heavy insider selling reported over the past six months may also weigh on sentiment, although CEO Richard Wurster was a buyer. Charles Schwab Shares Slip as Investors Weigh Rate Sensitivity and Recent Profit-Taking
Institutional Trading of Charles Schwab
Several large investors have recently modified their holdings of the stock. Souders Financial Advisors lifted its holdings in shares of Charles Schwab by 2.3% in the fourth quarter. Souders Financial Advisors now owns 4,341 shares of the financial services provider's stock worth $434,000 after acquiring an additional 98 shares during the last quarter. Essex Financial Services Inc. grew its holdings in shares of Charles Schwab by 0.8% during the 4th quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider's stock valued at $1,282,000 after purchasing an additional 105 shares during the last quarter. Sheets Smith Wealth Management grew its holdings in shares of Charles Schwab by 0.7% during the 1st quarter. Sheets Smith Wealth Management now owns 14,521 shares of the financial services provider's stock valued at $1,365,000 after purchasing an additional 108 shares during the last quarter. Acorn Financial Advisory Services Inc. ADV increased its position in Charles Schwab by 4.5% during the 4th quarter. Acorn Financial Advisory Services Inc. ADV now owns 2,536 shares of the financial services provider's stock worth $253,000 after purchasing an additional 110 shares in the last quarter. Finally, Interchange Capital Partners LLC increased its position in Charles Schwab by 2.8% during the 4th quarter. Interchange Capital Partners LLC now owns 4,104 shares of the financial services provider's stock worth $410,000 after purchasing an additional 112 shares in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.
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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