William Blair Forecasts Stronger Earnings for Charles Schwab

The Charles Schwab Co. (NYSE:SCHW) – Investment analysts at William Blair lifted their FY2024 earnings estimates for shares of Charles Schwab in a research note issued to investors on Monday, January 13th. William Blair analyst J. Schmitt now anticipates that the financial services provider will earn $3.16 per share for the year, up from their prior forecast of $3.10. The consensus estimate for Charles Schwab’s current full-year earnings is $3.12 per share. William Blair also issued estimates for Charles Schwab’s Q4 2024 earnings at $0.91 EPS, FY2025 earnings at $3.90 EPS and FY2026 earnings at $4.90 EPS.

A number of other analysts have also recently commented on SCHW. The Goldman Sachs Group upped their price objective on shares of Charles Schwab from $67.00 to $74.00 and gave the company a “neutral” rating in a research report on Wednesday, October 16th. Deutsche Bank Aktiengesellschaft increased their target price on Charles Schwab from $77.00 to $80.00 and gave the stock a “buy” rating in a report on Monday, November 11th. Raymond James lowered their target price on Charles Schwab from $76.00 to $73.00 in a report on Tuesday, October 15th. StockNews.com upgraded Charles Schwab from a “sell” rating to a “hold” rating in a report on Wednesday, October 16th. Finally, Citigroup lowered their target price on Charles Schwab from $85.00 to $80.00 and set a “neutral” rating for the company in a report on Friday, January 10th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Charles Schwab has an average rating of “Moderate Buy” and a consensus target price of $81.63.

Charles Schwab Price Performance

SCHW opened at $73.75 on Wednesday. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 0.59. Charles Schwab has a 12 month low of $59.67 and a 12 month high of $83.35. The company has a fifty day simple moving average of $77.62 and a 200 day simple moving average of $70.58. The stock has a market cap of $131.25 billion, a P/E ratio of 28.81, a P/E/G ratio of 1.76 and a beta of 0.99.

Charles Schwab (NYSE:SCHW) last released its quarterly earnings data on Tuesday, October 15th. The financial services provider reported $0.77 EPS for the quarter, beating analysts’ consensus estimates of $0.75 by $0.02. Charles Schwab had a net margin of 27.47% and a return on equity of 16.92%. The business had revenue of $4.85 billion during the quarter, compared to analysts’ expectations of $4.78 billion. During the same quarter in the prior year, the company earned $0.77 EPS. The firm’s quarterly revenue was up 5.2% on a year-over-year basis.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. HF Advisory Group LLC increased its holdings in shares of Charles Schwab by 1.3% during the fourth quarter. HF Advisory Group LLC now owns 37,869 shares of the financial services provider’s stock worth $2,803,000 after purchasing an additional 492 shares during the period. Aaron Wealth Advisors LLC increased its stake in Charles Schwab by 13.9% in the fourth quarter. Aaron Wealth Advisors LLC now owns 17,151 shares of the financial services provider’s stock valued at $1,269,000 after acquiring an additional 2,096 shares during the last quarter. Moss Adams Wealth Advisors LLC bought a new position in Charles Schwab in the fourth quarter valued at approximately $252,000. Krilogy Financial LLC increased its stake in Charles Schwab by 1.9% in the fourth quarter. Krilogy Financial LLC now owns 19,281 shares of the financial services provider’s stock valued at $1,427,000 after acquiring an additional 364 shares during the last quarter. Finally, Ameritas Advisory Services LLC bought a new position in Charles Schwab in the fourth quarter valued at approximately $422,000. 84.38% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other Charles Schwab news, insider Jonathan S. Beatty sold 2,300 shares of the firm’s stock in a transaction that occurred on Monday, November 25th. The shares were sold at an average price of $82.01, for a total transaction of $188,623.00. Following the completion of the sale, the insider now directly owns 18,069 shares in the company, valued at $1,481,838.69. This trade represents a 11.29 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Christopher V. Dodds sold 9,284 shares of the firm’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $81.43, for a total transaction of $755,996.12. Following the transaction, the director now directly owns 442,807 shares in the company, valued at $36,057,774.01. This represents a 2.05 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 26,823 shares of company stock worth $2,171,194 over the last three months. Insiders own 6.60% of the company’s stock.

Charles Schwab Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 22nd. Shareholders of record on Friday, November 8th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, November 8th. This represents a $1.00 annualized dividend and a yield of 1.36%. Charles Schwab’s dividend payout ratio (DPR) is presently 39.06%.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.