Investment Analysts’ Recent Ratings Changes for Charles Schwab (SCHW)

A number of research firms have changed their ratings and price targets for Charles Schwab (NYSE: SCHW):

  • 1/8/2019 – Charles Schwab was upgraded by analysts at Wolfe Research from an “underperform” rating to a “market perform” rating.
  • 1/7/2019 – Charles Schwab was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Schwab’s shares have outperformed the industry in the past six months. The company has a positive record of earnings surprises in the recent quarters, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Earnings estimates have remained stable ahead of the company's fourth quarter 2018 results. The company remains well positioned to gain from the rising rate environment and its initiatives to strengthen trading income. Moreover, its enhanced capital deployment plans indicate a strong balance sheet position. However, continuous rise in expenses remains a major concern and might hurt bottom-line growth. Also, the company's significant dependence on fee-based revenue streams makes us apprehensive.”
  • 1/4/2019 – Charles Schwab had its price target lowered by analysts at Morgan Stanley from $60.00 to $55.00. They now have an “overweight” rating on the stock.
  • 1/4/2019 – Charles Schwab had its price target lowered by analysts at Wells Fargo & Co from $53.00 to $44.00. They now have a “market perform” rating on the stock.
  • 1/3/2019 – Charles Schwab was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $47.00 price target on the stock. According to Zacks, “Schwab’s shares have outperformed the industry past six months. The company has a positive record of earnings surprises in the recent quarters, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Earnings estimates have remained stable ahead of the company's fourth quarter 2018 results. The company remains well positioned to gain from the rising rate environment and its initiatives to strengthen trading income. While continuous rise in expenses and significant dependence on fee-based revenue streams remain major near-term concerns, the company’s enhanced capital deployment plans indicate a strong balance sheet position.”
  • 12/4/2018 – Charles Schwab was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Schwab’s shares have outperformed the industry so far this year. The company has a positive record of earnings surprises in the recent quarters, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The company remains well positioned to gain from the rising rate environment and its initiatives to strengthen trading income. Also, the company’s enhanced capital deployment plans indicate a strong balance sheet position. However, continuous rise in expenses (due to rise in compensation costs) are likely to hurt bottom-line growth. Moreover, the company's significant dependence on fee-based revenue streams remains a major near-term concern as it might hamper financials.”
  • 12/2/2018 – Charles Schwab was upgraded by analysts at Citigroup Inc from a “sell” rating to a “neutral” rating. They now have a $44.08 price target on the stock.
  • 11/30/2018 – Charles Schwab is now covered by analysts at Goldman Sachs Group Inc. They set a “buy” rating and a $55.00 price target on the stock.
  • 11/26/2018 – Charles Schwab was upgraded by analysts at Citigroup Inc from a “sell” rating to a “neutral” rating.
  • 11/19/2018 – Charles Schwab was downgraded by analysts at UBS Group AG from a “buy” rating to a “neutral” rating.
  • 11/15/2018 – Charles Schwab had its “overweight” rating reaffirmed by analysts at Morgan Stanley.

NYSE:SCHW opened at $43.82 on Monday. The stock has a market capitalization of $59.19 billion, a price-to-earnings ratio of 26.72, a PEG ratio of 0.96 and a beta of 1.35. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.29 and a current ratio of 0.29. Charles Schwab Co. has a 12-month low of $37.83 and a 12-month high of $60.22.

Charles Schwab (NYSE:SCHW) last released its earnings results on Monday, October 15th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.65. Charles Schwab had a net margin of 32.65% and a return on equity of 19.02%. The company had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.58 billion. During the same period in the prior year, the firm earned $0.42 EPS. The firm’s quarterly revenue was up 19.1% on a year-over-year basis. Analysts forecast that Charles Schwab Co. will post 2.44 earnings per share for the current year.

In other news, insider Marie A. Chandoha sold 12,400 shares of the company’s stock in a transaction dated Monday, November 5th. The shares were sold at an average price of $47.18, for a total transaction of $585,032.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Walter W. Bettinger acquired 93,090 shares of the company’s stock in a transaction dated Monday, December 24th. The shares were bought at an average cost of $39.09 per share, with a total value of $3,638,888.10. Following the purchase, the chief executive officer now owns 335,093 shares in the company, valued at $13,098,785.37. The disclosure for this purchase can be found here. In the last ninety days, insiders have sold 408,737 shares of company stock valued at $19,205,418. Corporate insiders own 11.50% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Parkside Advisors LLC acquired a new stake in Charles Schwab during the 4th quarter worth approximately $237,000. State of Alaska Department of Revenue increased its position in Charles Schwab by 1.6% during the 4th quarter. State of Alaska Department of Revenue now owns 190,898 shares of the financial services provider’s stock worth $7,927,000 after purchasing an additional 3,001 shares in the last quarter. Chesley Taft & Associates LLC boosted its holdings in Charles Schwab by 6.3% in the 4th quarter. Chesley Taft & Associates LLC now owns 39,005 shares of the financial services provider’s stock worth $1,620,000 after acquiring an additional 2,300 shares during the period. First Financial Bank Trust Division purchased a new position in Charles Schwab in the 4th quarter worth approximately $2,407,000. Finally, Park National Corp OH boosted its holdings in Charles Schwab by 31.3% in the 4th quarter. Park National Corp OH now owns 119,928 shares of the financial services provider’s stock worth $4,980,000 after acquiring an additional 28,589 shares during the period. 79.52% of the stock is owned by institutional investors.

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.

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