Evercore Initiates Coverage on Charles Schwab (NYSE:SCHW)

Equities research analysts at Evercore started coverage on shares of Charles Schwab (NYSE:SCHW) in a report issued on Monday, Marketbeat Ratings reports. The firm set a “hold” rating and a $107.00 price target on the financial services provider’s stock. Evercore’s target price points to a potential upside of 10.22% from the stock’s current price.

Several other equities analysts have also recently weighed in on SCHW. Zacks Research cut shares of Charles Schwab from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 14th. Compass Point began coverage on Charles Schwab in a research note on Monday, August 3rd. They set a “buy” rating and a $135.00 target price on the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Charles Schwab in a report on Wednesday, July 22nd. UBS Group decreased their target price on shares of Charles Schwab from $128.00 to $113.00 and set a “buy” rating for the company in a research report on Wednesday, October 7th. Finally, Morgan Stanley increased their price objective on Charles Schwab from $136.00 to $141.00 and gave the company an “overweight” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $118.75.

Charles Schwab Price Performance

NYSE SCHW opened at $97.08 on Monday. The company’s 50 day simple moving average is $105.50 and its 200 day simple moving average is $98.15. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.64 and a quick ratio of 0.64. The firm has a market capitalization of $167.88 billion, a PE ratio of 17.65, a P/E/G ratio of 0.82 and a beta of 0.79. Charles Schwab has a 12 month low of $83.96 and a 12 month high of $114.53.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $6.90 billion. During the same quarter in the previous year, the business earned $1.14 EPS. The company’s quarterly revenue was up 20.9% compared to the same quarter last year. As a group, equities research analysts forecast that Charles Schwab will post 6.46 EPS for the current fiscal year.

Insider Transactions at Charles Schwab

In other news, insider Dennis Howard sold 28,000 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the insider owned 10,470 shares in the company, valued at $1,099,454.70. The trade was a 72.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nigel J. Murtagh sold 32,947 shares of the firm’s stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $104.01, for a total transaction of $3,426,817.47. Following the transaction, the insider directly owned 57,972 shares in the company, valued at approximately $6,029,667.72. This represents a 36.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 645,582 shares of company stock valued at $69,553,935. 6.30% of the stock is owned by insiders.

Institutional Trading of Charles Schwab

Several institutional investors have recently modified their holdings of SCHW. Kaizen Financial Strategies acquired a new position in Charles Schwab during the third quarter worth $205,000. RFG Bristol Wealth Advisors LLC boosted its stake in shares of Charles Schwab by 5.1% during the third quarter. RFG Bristol Wealth Advisors LLC now owns 21,280 shares of the financial services provider’s stock valued at $2,080,000 after acquiring an additional 1,038 shares during the last quarter. Sound Income Strategies LLC increased its position in Charles Schwab by 15.2% during the 3rd quarter. Sound Income Strategies LLC now owns 6,844 shares of the financial services provider’s stock worth $663,000 after purchasing an additional 905 shares in the last quarter. GK Wealth Management LLC acquired a new position in Charles Schwab in the 3rd quarter valued at about $41,000. Finally, Riversedge Advisors LLC raised its holdings in Charles Schwab by 14.0% in the 3rd quarter. Riversedge Advisors LLC now owns 3,087 shares of the financial services provider’s stock valued at $302,000 after acquiring an additional 378 shares during the last quarter. Institutional investors own 84.38% of the company’s stock.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: Evercore ISI initiated coverage with an “in-line” rating and a $107 price target, implying roughly 10% upside from the referenced $97.08 level. The target provides a constructive valuation signal even though the firm is not recommending an outright outperform rating. Evercore ISI initiates Charles Schwab at In Line
• Positive Sentiment: Analysts expect SCHW’s third-quarter results to benefit from robust trading activity, higher net interest revenue and stronger asset-management fees. These factors could support earnings growth ahead of the company’s quarterly report. Can Robust Trading, Higher NIR Support Schwab’s Q3 Earnings?
• Positive Sentiment: Longer-term commentary points to potential artificial-intelligence-related benefits, which could improve operating efficiency and strengthen Schwab’s competitive position over time. Charles Schwab Earnings And Long-Term AI Tailwinds
• Neutral Sentiment: Evercore’s “in-line” initiation indicates expectations are broadly balanced at current levels. The reported market value and European premarket pricing provide context but do not represent new company-specific catalysts. Charles Schwab Coverage Initiated by Analysts at Evercore
• Negative Sentiment: Rising operating expenses are identified as a headwind for third-quarter results and could offset some of the benefits from stronger trading, interest revenue and fee income. Higher long-term Treasury yields may also increase market sensitivity and investor concerns about valuation and funding conditions. Can Robust Trading, Higher NIR Support Schwab’s Q3 Earnings?

Charles Schwab Company Profile

Charles Schwab Corporation (NYSE:SCHW) is a financial services company that provides brokerage, investment, banking and wealth management services to individual investors, employers, institutions and independent investment advisors. Its offerings include online and mobile trading, securities brokerage, retirement accounts, financial planning, portfolio management, banking products, research and access to mutual funds and exchange-traded funds.

The company operates through businesses including Schwab Brokerage, Schwab Wealth Advisory, Schwab Asset Management and Charles Schwab Bank.