Charles Schwab (NYSE:SCHW) Reaches New 1-Year High – Here’s Why

The Charles Schwab Co. (NYSE:SCHW) shares hit a new 52-week high on Thursday . The company traded as high as $81.51 and last traded at $81.51, with a volume of 245900 shares trading hands. The stock had previously closed at $78.25.

Wall Street Analyst Weigh In

A number of research firms have recently commented on SCHW. TD Cowen reiterated a “hold” rating and set a $71.00 target price (down previously from $88.00) on shares of Charles Schwab in a research report on Wednesday, July 17th. Cowen boosted their price objective on Charles Schwab from $69.00 to $75.00 and gave the company a “hold” rating in a research note on Tuesday, October 15th. Jefferies Financial Group lowered their target price on shares of Charles Schwab from $79.00 to $73.00 and set a “buy” rating on the stock in a research report on Friday, October 4th. JPMorgan Chase & Co. lifted their target price on shares of Charles Schwab from $86.00 to $87.00 and gave the company an “overweight” rating in a report on Wednesday, October 16th. Finally, The Goldman Sachs Group increased their price target on shares of Charles Schwab from $67.00 to $74.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 16th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $74.18.

Charles Schwab Price Performance

The stock has a market cap of $144.81 billion, a PE ratio of 30.57, a PEG ratio of 1.79 and a beta of 0.96. The company has a 50-day simple moving average of $68.05 and a 200-day simple moving average of $69.54. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.47 and a quick ratio of 0.42.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings results on Tuesday, October 15th. The financial services provider reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.75 by $0.02. Charles Schwab had a net margin of 27.47% and a return on equity of 16.92%. The company had revenue of $4.85 billion during the quarter, compared to the consensus estimate of $4.78 billion. During the same period last year, the firm earned $0.77 EPS. The company’s revenue for the quarter was up 5.2% on a year-over-year basis. Sell-side analysts anticipate that The Charles Schwab Co. will post 3.12 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 22nd. Stockholders of record on Friday, November 8th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.23%. The ex-dividend date is Friday, November 8th. Charles Schwab’s dividend payout ratio (DPR) is presently 39.06%.

Insider Activity at Charles Schwab

In other news, insider Jonathan S. Beatty sold 2,500 shares of the firm’s stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $77.02, for a total transaction of $192,550.00. Following the completion of the transaction, the insider now directly owns 18,069 shares of the company’s stock, valued at $1,391,674.38. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. In related news, Chairman Charles R. Schwab sold 62,345 shares of Charles Schwab stock in a transaction dated Wednesday, October 16th. The stock was sold at an average price of $72.52, for a total transaction of $4,521,259.40. Following the completion of the sale, the chairman now owns 60,619,371 shares in the company, valued at approximately $4,396,116,784.92. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Jonathan S. Beatty sold 2,500 shares of the company’s stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $77.02, for a total transaction of $192,550.00. Following the completion of the transaction, the insider now owns 18,069 shares in the company, valued at approximately $1,391,674.38. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 103,645 shares of company stock valued at $7,440,627. Insiders own 6.60% of the company’s stock.

Institutional Trading of Charles Schwab

A number of hedge funds have recently bought and sold shares of the company. Washington Trust Advisors Inc. raised its holdings in Charles Schwab by 62.6% in the 3rd quarter. Washington Trust Advisors Inc. now owns 387 shares of the financial services provider’s stock valued at $25,000 after acquiring an additional 149 shares during the last quarter. Capital Performance Advisors LLP acquired a new position in Charles Schwab in the third quarter valued at $25,000. Country Trust Bank acquired a new position in Charles Schwab in the second quarter valued at $26,000. American Capital Advisory LLC purchased a new position in Charles Schwab during the second quarter worth about $27,000. Finally, Fortitude Family Office LLC boosted its stake in Charles Schwab by 97.5% in the 2nd quarter. Fortitude Family Office LLC now owns 389 shares of the financial services provider’s stock worth $29,000 after buying an additional 192 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company’s stock.

Charles Schwab Company Profile

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.