Charles Schwab (SCHW) Upgraded by Zacks Investment Research to Strong-Buy

Charles Schwab (NYSE:SCHW) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Friday. The firm presently has a $60.00 target price on the financial services provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 15.81% from the stock’s current price.

According to Zacks, “Schwab’s shares have outperformed the industry in the past six months. The performance was supported by impressive earnings surprise history, as the company did not lag the Zacks Consensus Estimate in any of the trailing four quarters. The company remains well positioned to gain from the rising rate environment. Also, initiatives to strengthen trading income are likely to support its profitability in the long run despite the near-term reduction in the same. While continuous rise in expenses (due to rise in compensation costs) remains a key concern for the company, the benefits from tax act will aid financials.”

Several other research analysts have also recently issued reports on the stock. Wells Fargo & Co reissued a “market perform” rating and set a $55.00 target price (up previously from $47.00) on shares of Charles Schwab in a report on Thursday. JMP Securities cut shares of Charles Schwab from an “outperform” rating to a “market perform” rating in a report on Wednesday. SunTrust Banks reaffirmed a “buy” rating and issued a $63.00 price objective (up previously from $56.00) on shares of Charles Schwab in a report on Tuesday, December 26th. Credit Suisse Group started coverage on shares of Charles Schwab in a report on Thursday, November 30th. They issued an “outperform” rating and a $55.00 price objective for the company. Finally, Deutsche Bank lifted their price objective on shares of Charles Schwab from $46.00 to $47.00 and gave the company a “hold” rating in a report on Wednesday, October 25th. Seven equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Buy” and an average price target of $50.38.

Shares of Charles Schwab (NYSE:SCHW) traded up $0.29 during trading on Friday, hitting $51.81. 5,310,400 shares of the company traded hands, compared to its average volume of 6,017,900. The company has a current ratio of 0.31, a quick ratio of 0.30 and a debt-to-equity ratio of 0.21. Charles Schwab has a 12-month low of $37.16 and a 12-month high of $52.52. The stock has a market capitalization of $69,290.00, a PE ratio of 33.21, a PEG ratio of 1.36 and a beta of 1.75.

Charles Schwab (NYSE:SCHW) last issued its earnings results on Wednesday, October 18th. The financial services provider reported $0.42 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.41 by $0.01. Charles Schwab had a net margin of 27.30% and a return on equity of 15.77%. The firm had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.18 billion. During the same quarter last year, the company posted $0.35 earnings per share. The firm’s revenue was up 13.1% compared to the same quarter last year. analysts predict that Charles Schwab will post 1.61 earnings per share for the current fiscal year.

In other Charles Schwab news, insider Marie A. Chandoha sold 7,000 shares of the business’s stock in a transaction dated Thursday, October 26th. The shares were sold at an average price of $45.59, for a total value of $319,130.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Terri R. Kallsen sold 2,026 shares of the business’s stock in a transaction dated Wednesday, January 3rd. The shares were sold at an average price of $51.30, for a total transaction of $103,933.80. Following the completion of the transaction, the executive vice president now owns 1,706 shares in the company, valued at $87,517.80. The disclosure for this sale can be found here. Insiders have sold 1,658,531 shares of company stock worth $77,397,901 over the last 90 days. 12.00% of the stock is currently owned by company insiders.

Large investors have recently bought and sold shares of the business. Beach Investment Management LLC. purchased a new stake in shares of Charles Schwab in the 2nd quarter valued at approximately $250,000. Oppenheimer & Co. Inc. raised its stake in shares of Charles Schwab by 3.2% in the 2nd quarter. Oppenheimer & Co. Inc. now owns 7,370 shares of the financial services provider’s stock valued at $316,000 after acquiring an additional 226 shares during the period. Fiduciary Trust Co. purchased a new stake in shares of Charles Schwab in the 2nd quarter valued at approximately $163,000. Schroder Investment Management Group raised its stake in shares of Charles Schwab by 24.4% in the 2nd quarter. Schroder Investment Management Group now owns 116,321 shares of the financial services provider’s stock valued at $5,003,000 after acquiring an additional 22,824 shares during the period. Finally, Tredje AP fonden raised its stake in shares of Charles Schwab by 0.8% in the 2nd quarter. Tredje AP fonden now owns 106,638 shares of the financial services provider’s stock valued at $4,581,000 after acquiring an additional 866 shares during the period. Institutional investors own 79.55% of the company’s stock.

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Charles Schwab Company Profile

The Charles Schwab Corporation (CSC) is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, money management and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services and Advisor Services.

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