Charles Schwab (NYSE:SCHW) Downgraded by Zacks Research to “Hold”

Zacks Research downgraded shares of Charles Schwab (NYSE:SCHW) from a strong-buy rating to a hold rating in a report published on Monday morning,Zacks reports.

SCHW has been the subject of a number of other research reports. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Charles Schwab in a report on Wednesday, July 22nd. BMO Capital Markets downgraded shares of Charles Schwab from an “outperform” rating to a “market perform” rating and set a $105.00 target price on the stock. in a research note on Monday, July 20th. Weiss Ratings upgraded shares of Charles Schwab from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, September 10th. Compass Point initiated coverage on shares of Charles Schwab in a research note on Monday, August 3rd. They issued a “buy” rating and a $135.00 price target for the company. Finally, Raymond James Financial restated an “outperform” rating and set a $145.00 price target on shares of Charles Schwab in a report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $121.17.

Charles Schwab Stock Performance

Shares of Charles Schwab stock opened at $107.86 on Monday. The business’s 50 day moving average price is $106.79 and its 200 day moving average price is $97.47. The company has a market cap of $186.52 billion, a price-to-earnings ratio of 19.61, a PEG ratio of 0.94 and a beta of 0.76. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.64 and a current ratio of 0.64. Charles Schwab has a one year low of $83.96 and a one year high of $114.53.

Charles Schwab (NYSE:SCHW) last issued its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.06. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%.The company had revenue of $7.07 billion during the quarter, compared to analysts’ expectations of $6.90 billion. During the same period in the prior year, the business earned $1.14 EPS. The firm’s quarterly revenue was up 20.9% on a year-over-year basis. On average, research analysts predict that Charles Schwab will post 6.46 EPS for the current year.

Charles Schwab Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 1.2%. The ex-dividend date was Friday, August 14th. Charles Schwab’s payout ratio is 23.27%.

Insider Buying and Selling

In other Charles Schwab news, insider Dennis Howard sold 28,000 shares of the company’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $105.01, for a total transaction of $2,940,280.00. Following the transaction, the insider directly owned 10,470 shares in the company, valued at $1,099,454.70. This represents a 72.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Peter J. Morgan III sold 6,952 shares of the firm’s stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $102.03, for a total value of $709,312.56. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 649,582 shares of company stock valued at $69,948,015 over the last three months. Company insiders own 6.30% of the company’s stock.

Hedge Funds Weigh In On Charles Schwab

Institutional investors have recently bought and sold shares of the company. Geode Capital Management LLC grew its holdings in shares of Charles Schwab by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider’s stock valued at $3,747,646,000 after purchasing an additional 98,242 shares in the last quarter. Franklin Resources Inc. boosted its position in Charles Schwab by 0.3% in the 4th quarter. Franklin Resources Inc. now owns 30,184,369 shares of the financial services provider’s stock valued at $3,015,720,000 after buying an additional 78,020 shares during the period. Fisher Asset Management LLC grew its stake in shares of Charles Schwab by 0.8% in the fourth quarter. Fisher Asset Management LLC now owns 21,818,514 shares of the financial services provider’s stock worth $2,179,888,000 after acquiring an additional 171,926 shares in the last quarter. Norges Bank acquired a new position in shares of Charles Schwab in the fourth quarter worth $1,994,189,000. Finally, Invesco Ltd. increased its position in shares of Charles Schwab by 3.0% during the fourth quarter. Invesco Ltd. now owns 16,425,579 shares of the financial services provider’s stock worth $1,641,080,000 after acquiring an additional 484,558 shares during the period. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab News Summary

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Record August asset gathering supports growth. Schwab reported $64.8 billion in net new assets during August, the strongest August on record. Core net new assets rose 12% month over month and 46% year over year, signaling continued customer acquisition and retention. Schwab Books a Record August With $64.8 Billion of Net New Assets
• Positive Sentiment: Margin balances surged. Client margin balances ended August at $177.6 billion, up 92% from a year earlier. Higher balances can support interest revenue, although they also increase exposure to market volatility and client leverage. August Margin Balance Report
• Positive Sentiment: Anthropic partnership expands Schwab’s advisor technology offering. Claude for Financial Advisors will be made available to more than 16,000 independent registered investment advisors, with tools for meeting preparation, financial planning, analytics and follow-ups. Integrations with CRM, custody, portfolio reporting and planning systems could improve advisor productivity and strengthen Schwab’s custody platform. Charles Schwab and Anthropic Bring Claude AI to Advisors
• Neutral Sentiment: AI benefits remain difficult to quantify. Analysts view Schwab as taking a more prominent role in AI-enabled wealth management, but some characterize the offering as generic or late to market. The partnership may support long-term competitiveness, though near-term revenue and earnings impact are not yet clear. Schwab Anthropic Partnership Analysis
• Neutral Sentiment: Valuation comparisons are mixed. A brokerage-stock comparison highlights Schwab’s earnings momentum, diversification and valuation against Robinhood, but does not introduce a new company-specific catalyst. Robinhood Versus Schwab Comparison
• Negative Sentiment: Potential legal and reputational risk persists. Schwab reportedly faces more than $1.3 million in exposure after an 82-year-old customer’s funds were sent to a cryptocurrency scam. The matter could create costs and draw attention to fraud-prevention controls, though its ultimate financial impact is uncertain. Schwab Customer Crypto Scam Report

About Charles Schwab

The Charles Schwab Corporation is a financial services company that provides investment, wealth management and banking services to individual investors, financial professionals, employers and institutions. Its offerings include brokerage accounts, retirement accounts, investment advisory services, mutual funds, exchange-traded funds, stocks, bonds and other securities.

Through Charles Schwab Bank and related platforms, the company also provides deposit accounts, lending and cash-management services.