The Charles Schwab Corporation (NYSE:SCHW) has garnered a “Moderate Buy” rating from twenty-four research firms that cover the stock, according to MarketBeat.com. The analysts’ recommendations vary, with two suggesting a sell, five recommending a hold, sixteen advising a buy, and one designating a strong buy. The consensus twelve-month price target stands at $106.45.
Recent analyst opinions have shown diverse assessments of SCHW shares. TD Cowen increased their price target on Charles Schwab from $129.00 to $134.00, maintaining a “buy” rating on October 17. Conversely, Bank of America raised its target from $84.00 to $86.00 while labeling the stock as “underperform” in a report dated October 2. Goldman Sachs confirmed a “buy” rating with a target price of $114.00 on the same date, and Barclays also increased their target from $114.00 to $115.00, assigning an “overweight” rating. Weiss Ratings reiterated a “hold (c+)” rating, emphasizing a balanced perspective.
As of Wednesday, SCHW stock opened at $90.73, featuring a debt-to-equity ratio of 0.47, and a quick and current ratio both at 0.55. The stock has fluctuated between a one-year low of $65.88 and a high of $99.59, with a market cap of $161.22 billion and a P/E ratio of 21.25. The stock’s recent performance includes a 50-day simple moving average of $93.84 and a 200-day average of $92.90, highlighting stability amidst market fluctuations.
On October 16, Charles Schwab reported impressive quarterly earnings of $1.31 per share, surpassing the consensus estimation of $1.25 by $0.06, while revenue reached $6.38 billion, exceeding expectations of $5.93 billion. This marked a substantial year-over-year revenue increase of 26.6%, reflecting robust growth and a return on equity of 21.26%.
Additionally, the company announced a quarterly dividend set to be paid on November 28, rewarding stockholders with $0.27 per share. This translates to an annualized dividend of $1.08, boasting a yield of 1.2%, and showcases a healthy payout ratio of 25.29%.
Insider trading highlights include Paul V. Woolway’s sale of 3,205 shares on October 1 at an average price of $93.33, reducing his ownership by 8.44%. Similarly, Jonathan S. Beatty sold 3,072 shares on November 12 for an average price of $98.00, representing a 20.49% decrease in his holdings.
Institutional investments also carry weight in Charles Schwab’s recent developments. Norges Bank significantly increased its stake during the second quarter, while Vanguard Group Inc. raised its holdings by 15.4% in the first quarter. Other notable contributions came from Wellington Management Group LLP and Primecap Management Co., with each boosting their ownership significantly, asserting strong institutional interest in the company’s prospects.
With a diverse range of voices from analysts and institutional investors alike, Charles Schwab stands resilient in the current financial landscape, driving optimism about its growth trajectory and providing a solid investment opportunity for stakeholders moving forward.