Zacks Research Raises Earnings Estimates for Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) – Equities research analysts at Zacks Research raised their FY2025 EPS estimates for shares of Charles Schwab in a research note issued to investors on Thursday, November 6th. Zacks Research analyst Team now expects that the financial services provider will post earnings of $4.71 per share for the year, up from their previous estimate of $4.57. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Charles Schwab’s current full-year earnings is $4.22 per share. Zacks Research also issued estimates for Charles Schwab’s Q1 2026 earnings at $1.24 EPS, Q2 2026 earnings at $1.32 EPS, Q3 2026 earnings at $1.37 EPS, Q4 2026 earnings at $1.49 EPS, Q1 2027 earnings at $1.48 EPS and Q2 2027 earnings at $1.55 EPS.

Several other research analysts have also recently commented on SCHW. Keefe, Bruyette & Woods raised their target price on Charles Schwab from $109.00 to $111.00 and gave the stock an “outperform” rating in a research report on Friday, October 17th. BMO Capital Markets assumed coverage on shares of Charles Schwab in a report on Friday, October 3rd. They set an “outperform” rating and a $110.00 price objective for the company. Piper Sandler reiterated a “neutral” rating on shares of Charles Schwab in a research report on Tuesday, October 14th. Raymond James Financial reissued an “outperform” rating and issued a $99.00 target price on shares of Charles Schwab in a research note on Friday, July 18th. Finally, JMP Securities restated a “market outperform” rating and set a $110.00 price target on shares of Charles Schwab in a research note on Friday, October 17th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Charles Schwab currently has a consensus rating of “Moderate Buy” and a consensus price target of $106.45.

Charles Schwab Price Performance

Shares of SCHW stock opened at $94.18 on Friday. The company has a market capitalization of $170.96 billion, a P/E ratio of 22.06, a P/E/G ratio of 0.85 and a beta of 1.02. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. Charles Schwab has a 12 month low of $65.88 and a 12 month high of $99.59. The stock has a 50 day moving average of $94.04 and a two-hundred day moving average of $91.62.

Charles Schwab (NYSE:SCHW) last released its earnings results on Thursday, October 16th. The financial services provider reported $1.31 earnings per share for the quarter, topping analysts’ consensus estimates of $1.25 by $0.06. The business had revenue of $6.14 billion for the quarter, compared to the consensus estimate of $5.93 billion. Charles Schwab had a return on equity of 21.26% and a net margin of 35.93%.The firm’s revenue for the quarter was up 26.6% compared to the same quarter last year. During the same period last year, the business earned $0.71 earnings per share.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. ZWJ Investment Counsel Inc. lifted its position in shares of Charles Schwab by 4.6% during the third quarter. ZWJ Investment Counsel Inc. now owns 2,390 shares of the financial services provider’s stock worth $228,000 after purchasing an additional 106 shares in the last quarter. Bryn Mawr Trust Advisors LLC increased its holdings in shares of Charles Schwab by 2.0% in the second quarter. Bryn Mawr Trust Advisors LLC now owns 5,489 shares of the financial services provider’s stock valued at $501,000 after purchasing an additional 107 shares in the last quarter. Nicolet Bankshares Inc. raised its position in Charles Schwab by 0.8% in the 2nd quarter. Nicolet Bankshares Inc. now owns 13,049 shares of the financial services provider’s stock worth $1,191,000 after purchasing an additional 107 shares during the last quarter. First PREMIER Bank raised its position in Charles Schwab by 23.8% in the 3rd quarter. First PREMIER Bank now owns 557 shares of the financial services provider’s stock worth $53,000 after purchasing an additional 107 shares during the last quarter. Finally, Harfst & Associates Inc. lifted its holdings in Charles Schwab by 0.3% during the 3rd quarter. Harfst & Associates Inc. now owns 33,724 shares of the financial services provider’s stock worth $3,220,000 after buying an additional 107 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company’s stock.

Insider Buying and Selling

In related news, insider Paul V. Woolway sold 3,205 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $93.33, for a total transaction of $299,122.65. Following the sale, the insider directly owned 34,778 shares in the company, valued at $3,245,830.74. This represents a 8.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total value of $4,851,552.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 65,866 shares of company stock worth $6,370,897 in the last three months. Insiders own 6.30% of the company’s stock.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 28th. Stockholders of record on Friday, November 14th will be issued a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, November 14th. Charles Schwab’s payout ratio is presently 25.29%.

Charles Schwab declared that its Board of Directors has approved a share buyback plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.