Charles Schwab (SCHW) Price Target Cut to $60.00

Charles Schwab (NYSE:SCHW) had its target price lowered by Morgan Stanley from $66.00 to $60.00 in a research report report published on Wednesday morning, MarketBeat Ratings reports. The brokerage currently has a buy rating on the financial services provider’s stock.

SCHW has been the subject of several other research reports. Deutsche Bank raised Charles Schwab from a hold rating to a buy rating and increased their target price for the stock from $52.00 to $54.00 in a research report on Tuesday, October 30th. Raymond James raised Charles Schwab from a market perform rating to an outperform rating and set a $54.00 target price for the company in a research report on Tuesday, October 30th. They noted that the move was a valuation call. Barclays decreased their target price on Charles Schwab from $65.00 to $57.00 and set an overweight rating for the company in a research report on Monday, October 22nd. Citigroup decreased their target price on Charles Schwab from $49.00 to $48.00 and set a sell rating for the company in a research report on Monday, July 23rd. Finally, Wolfe Research started coverage on Charles Schwab in a research report on Tuesday, September 25th. They issued an underperform rating for the company. Two research analysts have rated the stock with a sell rating, five have given a hold rating and ten have assigned a buy rating to the company’s stock. Charles Schwab presently has an average rating of Hold and an average price target of $57.33.

Shares of NYSE:SCHW traded down $0.36 during trading on Wednesday, hitting $46.96. The stock had a trading volume of 9,703,065 shares, compared to its average volume of 9,216,728. Charles Schwab has a 12 month low of $42.01 and a 12 month high of $60.22. The firm has a market capitalization of $63.28 billion, a P/E ratio of 20.92, a P/E/G ratio of 1.17 and a beta of 1.48. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.29 and a current ratio of 0.29.

Charles Schwab (NYSE:SCHW) last announced its earnings results on Monday, October 15th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.65. Charles Schwab had a return on equity of 19.02% and a net margin of 32.65%. The firm had revenue of $2.58 billion during the quarter, compared to analyst estimates of $2.58 billion. During the same quarter in the prior year, the company earned $0.42 EPS. The business’s revenue was up 19.1% compared to the same quarter last year. On average, equities analysts forecast that Charles Schwab will post 2.44 EPS for the current fiscal year.

Charles Schwab declared that its board has authorized a share buyback plan on Thursday, October 25th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the financial services provider to reacquire up to 1.7% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 23rd. Investors of record on Friday, November 9th will be given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 1.11%. The ex-dividend date is Thursday, November 8th. Charles Schwab’s dividend payout ratio (DPR) is presently 31.71%.

In related news, insider Marie A. Chandoha sold 8,424 shares of the firm’s stock in a transaction that occurred on Tuesday, October 16th. The stock was sold at an average price of $48.01, for a total transaction of $404,436.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Marie A. Chandoha sold 12,400 shares of the firm’s stock in a transaction that occurred on Monday, November 5th. The shares were sold at an average price of $47.18, for a total value of $585,032.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 406,453 shares of company stock valued at $19,107,379. 11.50% of the stock is owned by corporate insiders.

Several institutional investors have recently bought and sold shares of SCHW. Millennium Management LLC increased its holdings in shares of Charles Schwab by 130.5% in the 1st quarter. Millennium Management LLC now owns 53,972 shares of the financial services provider’s stock worth $2,818,000 after purchasing an additional 230,970 shares in the last quarter. Xact Kapitalforvaltning AB increased its holdings in shares of Charles Schwab by 3.7% in the 2nd quarter. Xact Kapitalforvaltning AB now owns 212,767 shares of the financial services provider’s stock worth $10,872,000 after purchasing an additional 7,685 shares in the last quarter. Atria Investments LLC increased its holdings in shares of Charles Schwab by 9.1% in the 2nd quarter. Atria Investments LLC now owns 14,372 shares of the financial services provider’s stock worth $734,000 after purchasing an additional 1,195 shares in the last quarter. Fox Run Management L.L.C. bought a new stake in shares of Charles Schwab in the 2nd quarter worth $247,000. Finally, Westpac Banking Corp increased its holdings in shares of Charles Schwab by 23.5% in the 2nd quarter. Westpac Banking Corp now owns 557,292 shares of the financial services provider’s stock worth $28,478,000 after purchasing an additional 106,108 shares in the last quarter. 80.51% of the stock is owned by institutional investors and hedge funds.

Charles Schwab Company Profile

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, 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, retirement plan, and mutual fund clearing services.

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