The Charles Schwab Corporation (NYSE:SCHW) Receives Average Rating of “Moderate Buy” from Brokerages

The Charles Schwab Corporation (NYSE:SCHW) has been given an average rating of “Moderate Buy” by the twenty-four analysts that are presently covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, five have issued a hold recommendation, sixteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $106.00.

SCHW has been the topic of several research analyst reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of Charles Schwab in a research report on Wednesday, October 8th. Bank of America boosted their price target on shares of Charles Schwab from $84.00 to $86.00 and gave the company an “underperform” rating in a research report on Thursday, October 2nd. Truist Financial boosted their price target on shares of Charles Schwab from $112.00 to $113.00 and gave the company a “buy” rating in a research report on Friday, October 17th. Zacks Research cut shares of Charles Schwab from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 17th. Finally, BMO Capital Markets initiated coverage on shares of Charles Schwab in a research report on Friday, October 3rd. They set an “outperform” rating and a $110.00 price target on the stock.

Charles Schwab Price Performance

SCHW stock opened at $94.62 on Friday. The firm’s 50-day moving average price is $94.29 and its two-hundred day moving average price is $91.14. Charles Schwab has a 12-month low of $65.88 and a 12-month high of $99.59. The stock has a market capitalization of $171.75 billion, a price-to-earnings ratio of 22.16, a PEG ratio of 0.85 and a beta of 0.97. 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 (NYSE:SCHW) last released its quarterly earnings data on Thursday, October 16th. The financial services provider reported $1.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.25 by $0.06. Charles Schwab had a net margin of 35.93% and a return on equity of 21.26%. The firm had revenue of $6.14 billion for the quarter, compared to analysts’ expectations of $5.93 billion. During the same quarter in the previous year, the company earned $0.71 earnings per share. The company’s revenue for the quarter was up 26.6% compared to the same quarter last year. As a group, equities analysts predict that Charles Schwab will post 4.22 earnings per share for the current year.

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

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 28th. Investors of record on Friday, November 14th will be given a dividend of $0.27 per share. The ex-dividend date is Friday, November 14th. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. Charles Schwab’s payout ratio is currently 25.29%.

Insider Activity at Charles Schwab

In related news, insider Jonathan S. Beatty sold 6,144 shares of the business’s stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total transaction of $594,800.64. Following the sale, the insider owned 11,923 shares of the company’s stock, valued at $1,154,265.63. The trade was a 34.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the business’s stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total transaction of $4,851,552.00. The disclosure for this sale is available in the SEC filing. Insiders have sold 65,866 shares of company stock worth $6,370,897 over the last 90 days. 6.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Charles Schwab

Hedge funds have recently bought and sold shares of the business. Princeton Global Asset Management LLC bought a new stake in Charles Schwab during the second quarter worth about $25,000. RMG Wealth Management LLC bought a new position in shares of Charles Schwab in the second quarter worth approximately $27,000. West Branch Capital LLC bought a new position in shares of Charles Schwab in the third quarter worth approximately $27,000. CBIZ Investment Advisory Services LLC lifted its stake in shares of Charles Schwab by 97.9% in the first quarter. CBIZ Investment Advisory Services LLC now owns 386 shares of the financial services provider’s stock worth $30,000 after buying an additional 191 shares in the last quarter. Finally, Stone House Investment Management LLC bought a new position in shares of Charles Schwab in the first quarter worth approximately $31,000. Institutional investors own 84.38% of the company’s stock.

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.