William Blair Boosts Earnings Estimates for Charles Schwab

The Charles Schwab Co. (NYSE:SCHW) – Equities research analysts at William Blair lifted their FY2024 earnings per share estimates for Charles Schwab in a research note issued to investors on Monday, January 13th. William Blair analyst J. Schmitt now forecasts that the financial services provider will post earnings of $3.16 per share for the year, up from their previous estimate of $3.10. The consensus estimate for Charles Schwab’s current full-year earnings is $3.12 per share. William Blair also issued estimates for Charles Schwab’s Q4 2024 earnings at $0.91 EPS, FY2025 earnings at $3.90 EPS and FY2026 earnings at $4.90 EPS.

Several other research firms have also recently weighed in on SCHW. Citigroup cut their price objective on Charles Schwab from $85.00 to $80.00 and set a “neutral” rating on the stock in a research report on Friday, January 10th. Raymond James reduced their price target on Charles Schwab from $76.00 to $73.00 in a research note on Tuesday, October 15th. Morgan Stanley raised their price objective on Charles Schwab from $68.00 to $74.00 and gave the company an “equal weight” rating in a research report on Thursday, October 24th. Truist Financial upgraded shares of Charles Schwab to a “strong-buy” rating in a report on Monday, January 6th. Finally, Bank of America cut their price target on Charles Schwab from $63.00 to $61.00 and set an “underperform” rating on the stock in a research note on Wednesday, October 16th. One analyst has rated the stock with a sell rating, eight have given a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $81.63.

Charles Schwab Price Performance

Shares of NYSE SCHW opened at $72.30 on Wednesday. Charles Schwab has a 1 year low of $59.67 and a 1 year high of $83.35. The stock has a market capitalization of $128.67 billion, a P/E ratio of 28.24, a P/E/G ratio of 1.76 and a beta of 0.99. The company’s 50-day moving average is $77.62 and its 200 day moving average is $70.58. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.47 and a quick ratio of 0.47.

Charles Schwab (NYSE:SCHW) last issued its quarterly earnings data on Tuesday, October 15th. The financial services provider reported $0.77 EPS for the quarter, topping the consensus estimate of $0.75 by $0.02. The business had revenue of $4.85 billion during the quarter, compared to analyst estimates of $4.78 billion. Charles Schwab had a net margin of 27.47% and a return on equity of 16.92%. The company’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.77 EPS.

Hedge Funds Weigh In On Charles Schwab

A number of institutional investors have recently bought and sold shares of SCHW. Dimensional Fund Advisors LP lifted its position in shares of Charles Schwab by 6.8% during the 2nd quarter. Dimensional Fund Advisors LP now owns 4,904,267 shares of the financial services provider’s stock valued at $361,402,000 after buying an additional 310,128 shares in the last quarter. One Capital Management LLC purchased a new position in Charles Schwab during the second quarter valued at approximately $667,000. WealthPLAN Partners LLC lifted its holdings in Charles Schwab by 12.8% during the second quarter. WealthPLAN Partners LLC now owns 8,401 shares of the financial services provider’s stock valued at $619,000 after purchasing an additional 953 shares in the last quarter. Sargent Investment Group LLC purchased a new stake in shares of Charles Schwab in the second quarter worth $260,000. Finally, Plancorp LLC raised its position in shares of Charles Schwab by 6.3% during the 2nd quarter. Plancorp LLC now owns 3,108 shares of the financial services provider’s stock valued at $229,000 after purchasing an additional 184 shares during the period. 84.38% of the stock is owned by institutional investors.

Insider Activity

In other news, insider Jonathan S. Beatty sold 2,300 shares of the company’s stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $82.01, for a total transaction of $188,623.00. Following the completion of the sale, the insider now owns 18,069 shares of the company’s stock, valued at $1,481,838.69. This represents a 11.29 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Christopher V. Dodds sold 9,284 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $81.43, for a total transaction of $755,996.12. Following the sale, the director now owns 442,807 shares of the company’s stock, valued at $36,057,774.01. This trade represents a 2.05 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 56,623 shares of company stock valued at $4,321,562 in the last ninety days. 6.60% of the stock is currently owned by company insiders.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, November 22nd. Shareholders of record on Friday, November 8th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, November 8th. This represents a $1.00 dividend on an annualized basis and a yield of 1.38%. Charles Schwab’s dividend payout ratio is presently 39.06%.

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.