Charles Schwab (NYSE:SCHW) Stock Price Expected to Rise, TD Cowen Analyst Says

Charles Schwab (NYSE:SCHW) had its price target lifted by stock analysts at TD Cowen from $129.00 to $134.00 in a research report issued on Friday,Benzinga reports. The firm presently has a “buy” rating on the financial services provider’s stock. TD Cowen’s price objective indicates a potential upside of 42.30% from the stock’s current price.

Other analysts also recently issued reports about the company. Keefe, Bruyette & Woods boosted their target price on Charles Schwab from $109.00 to $111.00 and gave the company an “outperform” rating in a report on Friday. The Goldman Sachs Group reaffirmed a “buy” rating and set a $114.00 price objective on shares of Charles Schwab in a research note on Friday. Truist Financial upped their price objective on Charles Schwab from $112.00 to $113.00 and gave the company a “buy” rating in a research note on Friday. Raymond James Financial reaffirmed an “outperform” rating and set a $99.00 price objective on shares of Charles Schwab in a research note on Friday, July 18th. Finally, Barclays upped their price objective on Charles Schwab from $114.00 to $115.00 and gave the company an “overweight” rating in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $104.70.

Charles Schwab Trading Up 0.8%

NYSE:SCHW opened at $94.17 on Friday. Charles Schwab has a 1 year low of $65.88 and a 1 year high of $99.59. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The stock has a market cap of $170.93 billion, a P/E ratio of 22.05, a P/E/G ratio of 0.89 and a beta of 0.97. The stock has a 50-day simple moving average of $94.68 and a 200-day simple moving average of $89.66.

Charles Schwab (NYSE:SCHW) last posted its earnings results on Thursday, October 16th. The financial services provider reported $1.31 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.06. Charles Schwab had a return on equity of 21.26% and a net margin of 35.93%.The business had revenue of $6.14 billion during the quarter, compared to the consensus estimate of $5.93 billion. During the same period in the previous year, the business earned $0.71 EPS. The business’s quarterly revenue was up 26.6% on a year-over-year basis. As a group, analysts anticipate that Charles Schwab will post 4.22 earnings per share for the current fiscal year.

Charles Schwab declared that its board has initiated a stock buyback program on Thursday, July 24th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the company’s stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the sale, the chairman owned 590,734 shares in the company, valued at $58,388,148.56. This represents a 22.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Jonathan S. Beatty sold 6,144 shares of the company’s stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total value of $594,800.64. Following the completion of the sale, the insider owned 11,923 shares in the company, valued at approximately $1,154,265.63. This represents a 34.01% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 267,128 shares of company stock worth $26,232,077. 6.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Vanguard Personalized Indexing Management LLC increased its holdings in Charles Schwab by 26.8% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 190,538 shares of the financial services provider’s stock valued at $17,387,000 after purchasing an additional 40,275 shares in the last quarter. Bain Capital Public Equity Management II LLC bought a new stake in shares of Charles Schwab during the first quarter valued at approximately $79,605,000. Independent Advisor Alliance raised its holdings in Charles Schwab by 13.8% during the first quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider’s stock worth $3,061,000 after purchasing an additional 4,754 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH raised its holdings in Charles Schwab by 6.2% during the first quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider’s stock worth $92,493,000 after purchasing an additional 68,858 shares in the last quarter. Finally, PFG Investments LLC grew its position in Charles Schwab by 10.2% in the second quarter. PFG Investments LLC now owns 5,951 shares of the financial services provider’s stock worth $543,000 after buying an additional 550 shares during the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

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.