Raymond James upgraded shares of Charles Schwab (NYSE:SCHW) from a market perform rating to an outperform rating in a research note released on Tuesday, MarketBeat reports. Raymond James currently has $54.00 price objective on the financial services provider’s stock. The analysts noted that the move was a valuation call.
Other equities analysts have also recently issued reports about the company. Wells Fargo & Co lifted their price objective on Charles Schwab from $54.00 to $56.00 and gave the company a $54.22 rating in a report on Wednesday, July 18th. Morgan Stanley lifted their price objective on Charles Schwab from $63.00 to $65.00 and gave the company an overweight rating in a report on Wednesday, July 25th. Citigroup dropped their price objective on Charles Schwab from $49.00 to $48.00 and set a sell rating for the company in a report on Monday, July 23rd. Wolfe Research assumed coverage on Charles Schwab in a report on Tuesday, September 25th. They issued an underperform rating for the company. Finally, Jefferies Financial Group reaffirmed a buy rating and issued a $66.00 price objective on shares of Charles Schwab in a report on Monday, July 16th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and ten have issued a buy rating to the company’s stock. Charles Schwab presently has a consensus rating of Hold and a consensus target price of $57.73.
NYSE:SCHW opened at $46.58 on Tuesday. The company has a market cap of $61.57 billion, a P/E ratio of 28.40, a PEG ratio of 1.13 and a beta of 1.55. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.33. Charles Schwab has a 1-year low of $42.01 and a 1-year high of $60.22.
Charles Schwab (NYSE:SCHW) last released its quarterly earnings results on Monday, October 15th. The financial services provider reported $0.65 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.65. The business had revenue of $2.58 billion during the quarter, compared to analysts’ expectations of $2.58 billion. Charles Schwab had a return on equity of 19.46% and a net margin of 32.65%. The firm’s revenue for the quarter was up 19.1% compared to the same quarter last year. During the same period last year, the firm posted $0.42 EPS. As a group, equities research analysts forecast that Charles Schwab will post 2.45 earnings per share for the current year.
Charles Schwab declared that its Board of Directors has initiated a stock buyback plan on Thursday, October 25th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 1.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.
The firm also recently declared a quarterly dividend, which will be paid on Friday, November 23rd. Stockholders of record on Friday, November 9th will be paid a $0.13 dividend. The ex-dividend date of this dividend is Thursday, November 8th. This represents a $0.52 annualized dividend and a dividend yield of 1.12%. Charles Schwab’s payout ratio is 31.71%.
In other news, EVP Jonathan M. Craig sold 2,629 shares of Charles Schwab stock in a transaction on Monday, October 15th. The stock was sold at an average price of $48.84, for a total value of $128,400.36. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Christopher V. Dodds sold 15,718 shares of Charles Schwab stock in a transaction on Thursday, August 16th. The shares were sold at an average price of $51.14, for a total value of $803,818.52. Following the completion of the transaction, the director now owns 7,592 shares in the company, valued at approximately $388,254.88. The disclosure for this sale can be found here. In the last quarter, insiders sold 26,771 shares of company stock worth $1,336,655. Corporate insiders own 11.50% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of the company. FMR LLC grew its position in Charles Schwab by 13.7% during the 2nd quarter. FMR LLC now owns 65,193,384 shares of the financial services provider’s stock worth $3,331,382,000 after acquiring an additional 7,868,551 shares during the last quarter. Nomura Holdings Inc. grew its position in Charles Schwab by 365.3% during the 2nd quarter. Nomura Holdings Inc. now owns 1,674,691 shares of the financial services provider’s stock worth $85,576,000 after acquiring an additional 1,314,740 shares during the last quarter. Manning & Napier Group LLC grew its position in Charles Schwab by 44.7% during the 2nd quarter. Manning & Napier Group LLC now owns 3,101,140 shares of the financial services provider’s stock worth $158,468,000 after acquiring an additional 957,925 shares during the last quarter. Calamos Advisors LLC grew its position in Charles Schwab by 693.1% during the 3rd quarter. Calamos Advisors LLC now owns 984,940 shares of the financial services provider’s stock worth $48,410,000 after acquiring an additional 860,758 shares during the last quarter. Finally, Wells Fargo & Company MN grew its position in Charles Schwab by 15.7% during the 2nd quarter. Wells Fargo & Company MN now owns 6,172,018 shares of the financial services provider’s stock worth $315,390,000 after acquiring an additional 838,506 shares during the last quarter. Institutional investors own 80.46% of the company’s stock.
About Charles Schwab
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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