William Blair Forecasts Stronger Earnings for Charles Schwab

The Charles Schwab Co. (NYSE:SCHW) – Analysts at William Blair lifted their FY2024 earnings per share estimates for Charles Schwab in a research note issued on Monday, January 13th. William Blair analyst J. Schmitt now expects that the financial services provider will post earnings per share of $3.16 for the year, up from their prior estimate 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.

SCHW has been the topic of a number of other reports. Truist Financial upgraded Charles Schwab to a “strong-buy” rating in a research note on Monday, January 6th. StockNews.com upgraded Charles Schwab from a “sell” rating to a “hold” rating in a research note on Wednesday, October 16th. Raymond James dropped their price objective on Charles Schwab from $76.00 to $73.00 in a research note on Tuesday, October 15th. Piper Sandler lifted their price objective on Charles Schwab from $65.00 to $70.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 7th. Finally, Citigroup dropped their price objective on Charles Schwab from $85.00 to $80.00 and set a “neutral” rating on the stock in a research note on Friday, January 10th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $81.63.

Charles Schwab Price Performance

Shares of NYSE:SCHW opened at $73.75 on Wednesday. Charles Schwab has a fifty-two week low of $59.67 and a fifty-two week high of $83.35. The business has a 50-day moving average of $77.62 and a two-hundred day moving average of $70.58. The stock has a market capitalization 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. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.47 and a quick ratio of 0.47.

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. HF Advisory Group LLC lifted its holdings in Charles Schwab by 1.3% during the 4th quarter. HF Advisory Group LLC now owns 37,869 shares of the financial services provider’s stock worth $2,803,000 after buying an additional 492 shares in the last quarter. Aaron Wealth Advisors LLC raised its position in shares of Charles Schwab by 13.9% during the 4th 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 stake in shares of Charles Schwab during the 4th quarter valued at $252,000. Krilogy Financial LLC raised its position in shares of Charles Schwab by 1.9% during the 4th 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 stake in shares of Charles Schwab during the 4th quarter valued at $422,000. Institutional investors and hedge funds own 84.38% of the company’s stock.

Insider Activity

In other Charles Schwab news, insider Jonathan S. Beatty sold 2,300 shares of the company’s stock in a transaction on Monday, November 25th. The stock was sold at an average price of $82.01, for a total transaction of $188,623.00. Following the transaction, the insider now owns 18,069 shares of the company’s stock, valued at approximately $1,481,838.69. This represents a 11.29 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Nigel J. Murtagh sold 12,739 shares of the company’s stock in a transaction on Friday, November 22nd. The stock was sold at an average price of $81.17, for a total value of $1,034,024.63. Following the transaction, the insider now directly owns 59,092 shares in the company, valued at approximately $4,796,497.64. This represents a 17.73 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 26,823 shares of company stock worth $2,171,194. Company 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. Stockholders of record on Friday, November 8th were paid a $0.25 dividend. The ex-dividend date of this dividend was Friday, November 8th. This represents a $1.00 annualized dividend and a dividend yield of 1.36%. Charles Schwab’s dividend payout ratio is currently 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.