StockNews.com Downgrades Charles Schwab (NYSE:SCHW) to Sell

StockNews.com downgraded shares of Charles Schwab (NYSE:SCHWGet Rating) from a hold rating to a sell rating in a report released on Thursday morning.

Other equities analysts have also issued research reports about the company. Citigroup increased their target price on Charles Schwab from $87.50 to $90.00 and gave the company a buy rating in a report on Friday, April 22nd. Jefferies Financial Group dropped their target price on Charles Schwab to $95.00 in a report on Friday, April 22nd. JPMorgan Chase & Co. dropped their target price on Charles Schwab from $107.00 to $101.00 in a report on Thursday, April 14th. JMP Securities lowered Charles Schwab from an outperform rating to a market perform rating in a report on Monday, January 10th. Finally, UBS Group dropped their target price on Charles Schwab from $80.00 to $72.00 in a report on Sunday, April 24th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and thirteen have given a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of Buy and an average price target of $94.25.

Charles Schwab stock opened at $69.12 on Thursday. Charles Schwab has a twelve month low of $65.73 and a twelve month high of $96.24. The stock’s fifty day simple moving average is $82.01 and its 200-day simple moving average is $83.91. The company has a current ratio of 0.41, a quick ratio of 0.41 and a debt-to-equity ratio of 0.41. The firm has a market capitalization of $125.52 billion, a P/E ratio of 25.04, a P/E/G ratio of 0.75 and a beta of 1.00.

Charles Schwab (NYSE:SCHWGet Rating) last posted its quarterly earnings data on Monday, April 18th. The financial services provider reported $0.77 earnings per share for the quarter, missing analysts’ consensus estimates of $0.84 by ($0.07). Charles Schwab had a return on equity of 13.67% and a net margin of 31.24%. The company had revenue of $4.67 billion for the quarter, compared to analysts’ expectations of $4.82 billion. During the same period in the prior year, the company posted $0.84 EPS. The firm’s revenue was down .9% compared to the same quarter last year. Sell-side analysts predict that Charles Schwab will post 4.07 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 27th. Stockholders of record on Friday, May 13th will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Thursday, May 12th. This represents a $0.80 annualized dividend and a dividend yield of 1.16%. Charles Schwab’s dividend payout ratio (DPR) is 28.99%.

In related news, Chairman Charles R. Schwab sold 1,420 shares of the stock in a transaction dated Tuesday, February 1st. The shares were sold at an average price of $89.43, for a total transaction of $126,990.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Peter J. Morgan III sold 2,239 shares of Charles Schwab stock in a transaction that occurred on Monday, January 31st. The shares were sold at an average price of $87.14, for a total value of $195,106.46. The disclosure for this sale can be found here. Insiders have sold 574,625 shares of company stock valued at $51,649,366 in the last quarter. Insiders own 7.50% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in SCHW. Steph & Co. purchased a new stake in Charles Schwab in the 4th quarter valued at approximately $25,000. Industrial Alliance Investment Management Inc. purchased a new stake in Charles Schwab in the 4th quarter valued at approximately $25,000. SBK Financial Inc. purchased a new stake in Charles Schwab in the 4th quarter valued at approximately $25,000. University of Texas Texas AM Investment Managment Co. purchased a new stake in Charles Schwab in the 3rd quarter valued at approximately $26,000. Finally, Annapolis Financial Services LLC boosted its holdings in Charles Schwab by 135.5% in the 3rd quarter. Annapolis Financial Services LLC now owns 365 shares of the financial services provider’s stock valued at $27,000 after purchasing an additional 210 shares in the last quarter. 71.58% of the stock is currently owned by institutional investors.

Charles Schwab Company Profile (Get Rating)

The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, banking and trust, retirement plan, 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 and mutual fund clearing services, as well as compliance solutions.

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