Charles Schwab (NYSE:SCHW) Sets New 1-Year Low – What’s Next?

The Charles Schwab Corporation (NYSE:SCHW)’s stock price hit a new 52-week low on Wednesday . The company traded as low as $84.72 and last traded at $86.7770, with a volume of 5086892 shares traded. The stock had previously closed at $89.40.

More Charles Schwab News

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

• Negative Sentiment: Schwab issued $1.0 billion of fixed-to-floating senior notes due 2030 and $1.25 billion due 2037, which can raise investor concern about funding costs and leverage for a brokerage-bank hybrid. Article: Charles Schwab slips 3.2% as investors digest new debt issuance and recent insider selling
• Negative Sentiment: Recent insider sales added to cautious sentiment, including co-chairman Charles R. Schwab’s sale of 27,500 shares; the broader pattern shows no insider purchases in the last six months. Article: Charles Schwab slips 3.2% as investors digest new debt issuance and recent insider selling
• Neutral Sentiment: Schwab’s April activity report showed solid business momentum, with $7.2 billion in core net new assets and $12.61 trillion in client assets, which supports the longer-term franchise but was not enough to offset the near-term pressure. Article: Charles Schwab slips 3.2% as investors digest new debt issuance and recent insider selling
• Neutral Sentiment: The Charles Schwab Foundation launched Schwab Moneywise Momentum Grants, reinforcing the company’s financial education brand, but the announcement is unlikely to move the stock by itself. Article: Charles Schwab Foundation Launches Schwab Moneywise Momentum Grants as Part of a $20 Million Multi-Year Commitment to Financial Education
• Neutral Sentiment: Robinhood’s launch of AI agents for trading and purchases highlights rising competition and innovation in brokerage tech, but it is only an indirect competitive datapoint for Schwab. Article: Robinhood Launches AI Agents for Stock Trading and Credit Card Purchases

Wall Street Analyst Weigh In

SCHW has been the subject of a number of research reports. Keefe, Bruyette & Woods initiated coverage on shares of Charles Schwab in a research report on Wednesday, April 8th. They set an “outperform” rating and a $110.00 target price for the company. Jefferies Financial Group cut their target price on shares of Charles Schwab from $122.00 to $118.00 and set a “buy” rating for the company in a research report on Monday, April 6th. Argus set a $108.00 price target on shares of Charles Schwab in a report on Monday, April 20th. Morgan Stanley lowered their price target on shares of Charles Schwab from $135.00 to $125.00 and set an “overweight” rating on the stock in a report on Friday, April 17th. Finally, TD Cowen increased their price target on shares of Charles Schwab from $108.00 to $109.00 and gave the stock a “buy” rating in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $114.30.

Charles Schwab Stock Performance

The stock has a market capitalization of $149.98 billion, a PE ratio of 17.11, a P/E/G ratio of 0.61 and a beta of 0.80. 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 business’s fifty day moving average price is $92.60 and its 200-day moving average price is $95.80.

Charles Schwab (NYSE:SCHW) last announced its quarterly earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.39 by $0.04. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The firm had revenue of $6.48 billion for the quarter, compared to the consensus estimate of $6.39 billion. During the same period in the prior year, the firm posted $1.04 earnings per share. The company’s revenue for the quarter was up 15.8% on a year-over-year basis. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. As a group, equities research analysts expect that The Charles Schwab Corporation will post 6.12 EPS for the current year.

Charles Schwab Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Friday, May 8th. Charles Schwab’s dividend payout ratio (DPR) is currently 25.40%.

Insider Activity at Charles Schwab

In related news, insider Dennis Howard sold 10,108 shares of the firm’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $94.60, for a total value of $956,216.80. Following the sale, the insider directly owned 10,470 shares of the company’s stock, valued at $990,462. This trade represents a 49.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Nigel J. Murtagh sold 41,297 shares of the firm’s stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the completion of the sale, the insider directly owned 57,972 shares in the company, valued at $5,739,228. This represents a 41.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 99,021 shares of company stock valued at $9,617,291. Company insiders own 6.30% of the company’s stock.

Institutional Investors Weigh In On Charles Schwab

Institutional investors and hedge funds have recently bought and sold shares of the stock. Dogwood Wealth Management LLC raised its stake in Charles Schwab by 99.2% in the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider’s stock valued at $25,000 after purchasing an additional 123 shares in the last quarter. Piscataqua Savings Bank purchased a new stake in Charles Schwab in the fourth quarter valued at approximately $26,000. GoalVest Advisory LLC purchased a new stake in Charles Schwab in the fourth quarter valued at approximately $28,000. Beacon Financial Strategies CORP purchased a new position in shares of Charles Schwab during the fourth quarter worth approximately $29,000. Finally, Optima Capital LLC purchased a new position in shares of Charles Schwab during the fourth quarter worth approximately $30,000. 84.38% of the stock is owned by hedge funds and other institutional investors.

About Charles Schwab

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.