Charles Schwab (NYSE:SCHW) Stock Gets Price Target Reduction from Evercore

Charles Schwab (NYSE:SCHW) had its price objective lowered by Evercore from $107.00 to $104.00 in a research report sent to investors on Friday.

A number of other research firms have also recently issued reports on SCHW. Jefferies Financial Group set a $120.00 price objective on Charles Schwab in a research report on Friday. Argus raised their target price on Charles Schwab from $108.00 to $114.00 and gave the stock a “buy” rating in a research report on Thursday, July 23rd. TD Cowen increased their price objective on shares of Charles Schwab from $128.00 to $129.00 and gave the company a “buy” rating in a research note on Monday, October 12th. Morgan Stanley raised their price objective on shares of Charles Schwab from $136.00 to $141.00 and gave the stock an “overweight” rating in a report on Friday, October 9th. Finally, BMO Capital Markets decreased their target price on shares of Charles Schwab from $105.00 to $97.00 and set a “market perform” rating on the stock in a research report on Monday. Eighteen research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $120.82.

Charles Schwab Stock Performance

SCHW stock traded down $2.32 during trading on Friday, reaching $89.64. 12,503,993 shares of the stock were exchanged, compared to its average volume of 10,096,690. Charles Schwab has a twelve month low of $83.96 and a twelve month high of $114.53. 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 $155.01 billion, a P/E ratio of 15.30, a price-to-earnings-growth ratio of 0.81 and a beta of 0.79. The stock has a 50 day simple moving average of $104.50 and a 200-day simple moving average of $98.18.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings results on Thursday, October 15th. The financial services provider reported $1.69 EPS for the quarter, beating the consensus estimate of $1.66 by $0.03. Charles Schwab had a return on equity of 25.79% and a net margin of 39.33%. The firm had revenue of $7.17 billion during the quarter, compared to analysts’ expectations of $7.18 billion. During the same quarter in the prior year, the firm posted $1.31 EPS. The company’s revenue for the quarter was up 16.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Charles Schwab will post 6.44 earnings per share for the current year.

Charles Schwab Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were given a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. The ex-dividend date was Friday, August 14th. Charles Schwab’s dividend payout ratio (DPR) is 21.84%.

Insiders Place Their Bets

In other Charles Schwab news, Director Paula A. Sneed sold 5,263 shares of Charles Schwab stock in a transaction on Friday, August 7th. The stock was sold at an average price of $107.15, for a total transaction of $563,930.45. Following the completion of the transaction, the director directly owned 91,711 shares of the company’s stock, valued at approximately $9,826,833.65. This trade represents a 5.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Dennis Howard sold 2,198 shares of the business’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $110.00, for a total transaction of $241,780.00. Following the completion of the sale, the insider owned 6,980 shares in the company, valued at $767,800. This represents a 23.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 645,582 shares of company stock worth $69,553,935 over the last quarter. Corporate insiders own 6.30% of the company’s stock.

Institutional Investors Weigh In On Charles Schwab

Hedge funds have recently made changes to their positions in the company. Bank of New York Mellon Corp grew its position in Charles Schwab by 22.9% during the 1st quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider’s stock worth $1,518,913,000 after acquiring an additional 3,009,884 shares during the last quarter. Bank of America Corp DE raised its position in Charles Schwab by 3.5% in the 1st quarter. Bank of America Corp DE now owns 15,623,030 shares of the financial services provider’s stock valued at $1,468,252,000 after purchasing an additional 530,191 shares during the last quarter. Flossbach Von Storch SE bought a new position in Charles Schwab in the 2nd quarter valued at $987,930,000. Dimensional Fund Advisors LP raised its position in Charles Schwab by 1.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,742,934 shares of the financial services provider’s stock valued at $539,705,000 after purchasing an additional 60,979 shares during the last quarter. Finally, Provident Trust Co. boosted its stake in Charles Schwab by 0.4% in the second quarter. Provident Trust Co. now owns 3,716,441 shares of the financial services provider’s stock worth $342,916,000 after purchasing an additional 13,616 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company’s stock.

Key Charles Schwab News

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab’s CEO said clients using artificial intelligence for trading are holding more cash than other active traders, potentially supporting deposits, liquidity and net interest revenue. AI Was Expected to Drain Charles Schwab’s Cash
• Positive Sentiment: The company added an international bond exchange-traded fund, broadening its investment-product lineup and potentially increasing fee-generating assets. Charles Schwab Added an International Bond ETF
• Positive Sentiment: Citizens reaffirmed a “Market Outperform” rating, while recent quarterly results showed earnings above consensus, record revenue and year-over-year revenue growth. Citizens Reaffirms Market Outperform Rating
• Neutral Sentiment: Schwab and other financial firms are blocking unauthorized third-party AI agents from accessing accounts or moving money. The measures may reduce security and liability risks, but could limit near-term AI-related innovation and customer functionality. Schwab and JPMorgan Block Unauthorized AI Agents
• Negative Sentiment: Although quarterly EPS exceeded expectations, revenue came in slightly below analyst forecasts. The mixed result has contributed to cautious investor sentiment. Charles Schwab Shares Dip After Q3 Revenue Disappoints
• Negative Sentiment: BMO Capital Markets lowered its price target from $105 to $97 and assigned a “Market Perform” rating. JPMorgan also cut its price target, reinforcing concerns about the stock’s near-term upside and valuation. Charles Schwab Price Target Cut by JPMorgan

Charles Schwab Company Profile

The Charles Schwab Corporation (NYSE: SCHW) is a financial services company that provides investment, wealth management, banking and related services to individual investors, financial professionals and institutional clients. Through its brokerage business, Schwab offers trading and custody services for stocks, exchange-traded funds, mutual funds, options, fixed-income securities and other investments, along with retirement accounts and investment research tools.

The company also provides advisory and wealth management services, including managed portfolios, financial planning and support for registered investment advisors.