Charles Schwab Corp. Upgraded by Compass Point to “Neutral” (SCHW)
Charles Schwab Corp. (NASDAQ:SCHW) was upgraded by analysts at Compass Point from a “sell” rating to a “neutral” rating in a research report issued to clients and investors on Wednesday, TheFlyOnTheWall.com reports. The firm currently has a $20.00 price objective on the stock, up from their previous price objective of $17.00. Compass Point’s target price points to a potential downside of 14.64% from the company’s current price.
The analysts wrote, “We are upgrading our rating on SCHW shares to Neutral, from Sell, and increasing our price target to $20, from $17, after the company reported improved 3Q13 results, highlighted by a 15% YOY increase in revenues. Our Sell rating had been primarily driven by the stock’s premium valuation, our view that investors were pricing in ‘normalized’ earnings too soon, and our expectation that the recent increase in the yield curve was not sustainable near-term given the still-uncertain macro environment. Today, while we continue to view SCHW shares as rich and see some downside to the stock at current levels, our operational outlook has incrementally improved as medium term interest rates appear to be more viable at these levels, with tapering of quantitative easing on the horizon. Even if tapering does not materialize until mid-2014, we expect SCHW shares to generally hold up in anticipation of ultimate action and the company would benefit from likely favorable equity market reaction.”
Shares of Charles Schwab Corp. (NASDAQ:SCHW) traded up 1.74% during mid-day trading on Wednesday, hitting $23.43. The stock had a trading volume of 15,846,070 shares. Charles Schwab Corp. has a 52 week low of $12.47 and a 52 week high of $23.93. The stock’s 50-day moving average is $21.56 and its 200-day moving average is $20.23. The company has a market cap of $30.105 billion and a P/E ratio of 34.89.
Charles Schwab Corp. (NASDAQ:SCHW) last posted its quarterly earnings results on Tuesday, October 15th. The company reported $0.22 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.20 by $0.02. The company had revenue of $1.37 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the prior year, the company posted $0.19 earnings per share. The company’s quarterly revenue was up 14.8% on a year-over-year basis. Analysts expect that Charles Schwab Corp. will post $0.74 EPS for the current fiscal year.
In other Charles Schwab Corp. news, EVP Carrie E. Dwyer sold 95,958 shares of the company’s stock in a transaction that occurred on Tuesday, October 15th. The stock was sold at an average price of $23.33, for a total value of $2,238,700.14. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
Several other analysts have also recently commented on the stock. Analysts at JMP Securities initiated coverage on shares of Charles Schwab Corp. in a research note to investors on Wednesday, October 9th. They set a “market perform” rating on the stock. Separately, analysts at Zacks reiterated a “neutral” rating on shares of Charles Schwab Corp. in a research note to investors on Tuesday, September 3rd. They now have a $22.00 price target on the stock. Finally, analysts at Credit Suisse raised their price target on shares of Charles Schwab Corp. to $19.00 in a research note to investors on Monday, July 29th. They now have a “neutral” rating on the stock. Four equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have issued a buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $19.56.
The Charles Schwab Corporation (NASDAQ:SCHW) is a savings and loan holding company.
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