Charles Schwab (NYSE:SCHW) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Friday, January 5th. The firm currently has a $60.00 price target on the financial services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 10.76% from the company’s previous close.
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.”
A number of other research firms have also recently issued reports on SCHW. SunTrust Banks reiterated a “buy” rating and issued a $63.00 target price (up previously from $56.00) on shares of Charles Schwab in a research note on Tuesday, December 26th. Wells Fargo & Co reiterated a “market perform” rating and issued a $55.00 target price (up previously from $47.00) on shares of Charles Schwab in a research note on Thursday, January 4th. JMP Securities cut shares of Charles Schwab from an “outperform” rating to a “market perform” rating in a research report on Wednesday, January 3rd. Credit Suisse Group started coverage on shares of Charles Schwab in a research report on Thursday, November 30th. They issued an “outperform” rating and a $55.00 price objective for the company. Finally, Barclays boosted their price objective on shares of Charles Schwab from $48.00 to $51.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 10th. Six investment analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average price target of $51.25.
Charles Schwab (NYSE:SCHW) traded up $0.61 during mid-day trading on Friday, reaching $54.17. The company had a trading volume of 5,379,300 shares, compared to its average volume of 6,204,537. Charles Schwab has a fifty-two week low of $37.16 and a fifty-two week high of $54.47. The firm has a market capitalization of $73,960.00, a P/E ratio of 34.72, a PEG ratio of 1.30 and a beta of 1.75. 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 (NYSE:SCHW) last announced its quarterly earnings results on Wednesday, October 18th. The financial services provider reported $0.42 EPS for the quarter, topping analysts’ consensus estimates 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 earned $0.35 earnings per share. The company’s revenue for the quarter was up 13.1% compared to the same quarter last year. research analysts predict that Charles Schwab will post 1.61 EPS for the current fiscal year.
In related news, Chairman Charles R. Schwab sold 225,000 shares of the company’s stock in a transaction on Tuesday, October 24th. The shares were sold at an average price of $44.89, for a total value of $10,100,250.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Bernard J. Clark sold 50,444 shares of the company’s stock in a transaction on Monday, December 4th. The stock was sold at an average price of $50.52, for a total transaction of $2,548,430.88. The disclosure for this sale can be found here. Insiders sold a total of 1,658,531 shares of company stock valued at $77,397,901 in the last three months. 12.00% of the stock is owned by company insiders.
A number of large investors have recently modified their holdings of SCHW. Capital Research Global Investors lifted its position in Charles Schwab by 86.3% during the 2nd quarter. Capital Research Global Investors now owns 24,237,199 shares of the financial services provider’s stock worth $1,041,230,000 after buying an additional 11,224,199 shares in the last quarter. Janus Henderson Group PLC lifted its position in Charles Schwab by 1,766.9% during the 2nd quarter. Janus Henderson Group PLC now owns 9,357,736 shares of the financial services provider’s stock worth $402,011,000 after buying an additional 8,856,483 shares in the last quarter. FMR LLC raised its holdings in shares of Charles Schwab by 11.3% in the 2nd quarter. FMR LLC now owns 30,766,004 shares of the financial services provider’s stock valued at $1,321,708,000 after purchasing an additional 3,128,532 shares during the period. Vanguard Group Inc. raised its holdings in shares of Charles Schwab by 3.2% in the 2nd quarter. Vanguard Group Inc. now owns 81,925,586 shares of the financial services provider’s stock valued at $3,519,523,000 after purchasing an additional 2,536,947 shares during the period. Finally, Amundi Pioneer Asset Management Inc. raised its holdings in shares of Charles Schwab by 90.2% in the 3rd quarter. Amundi Pioneer Asset Management Inc. now owns 4,887,840 shares of the financial services provider’s stock valued at $213,794,000 after purchasing an additional 2,318,498 shares during the period. 79.54% of the stock is currently owned by hedge funds and other institutional investors.
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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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