Charles Schwab (NYSE:SCHW) Stock Gets Price Target Reduction from Morgan Stanley

Charles Schwab (NYSE:SCHW) had its price objective reduced by Morgan Stanley from $141.00 to $132.00 in a research note released on Wednesday morning,Benzinga reports. Morgan Stanley currently has an overweight rating on the financial services provider’s stock.

SCHW has been the subject of several other reports. Citizens Jmp reissued a “market outperform” rating and set a $120.00 price target on shares of Charles Schwab in a research report on Friday, October 16th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $117.00 price objective (down from $122.00) on shares of Charles Schwab in a research report on Friday, October 16th. Bank of America boosted their price objective on shares of Charles Schwab from $91.00 to $95.00 and gave the stock an “underperform” rating in a research note on Monday, October 5th. Citigroup reissued a “market outperform” rating on shares of Charles Schwab in a research report on Friday, October 16th. Finally, Weiss Ratings upgraded shares of Charles Schwab from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, September 10th. Eighteen equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $120.18.

Charles Schwab Trading Down 1.0%

Shares of NYSE SCHW opened at $90.56 on Wednesday. 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 stock has a market capitalization of $156.61 billion, a P/E ratio of 15.45, a price-to-earnings-growth ratio of 0.81 and a beta of 0.79. Charles Schwab has a 1-year low of $83.96 and a 1-year high of $114.53. The business has a fifty day moving average price of $102.66 and a 200 day moving average price of $98.06.

Charles Schwab (NYSE:SCHW) last issued its quarterly earnings data on Thursday, October 15th. The financial services provider reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $1.66 by $0.03. Charles Schwab had a return on equity of 25.79% and a net margin of 39.33%. The company had revenue of $7.17 billion for the quarter, compared to the consensus estimate of $7.18 billion. During the same quarter last year, the company earned $1.31 earnings per share. The firm’s revenue for the quarter was up 16.9% compared to the same quarter last year. Equities research analysts expect that Charles Schwab will post 6.41 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be issued a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, November 13th. Charles Schwab’s dividend payout ratio is 21.84%.

Insiders Place Their Bets

In related news, insider Nigel J. Murtagh sold 24,778 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $109.01, for a total transaction of $2,701,049.78. Following the completion of the transaction, the insider owned 57,972 shares of the company’s stock, valued at $6,319,527.72. This trade represents a 29.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dennis Howard sold 2,198 shares of the business’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $110.00, for a total transaction of $241,780.00. Following the transaction, the insider owned 6,980 shares of the company’s stock, valued at $767,800. This represents a 23.95% 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 three months, insiders sold 632,577 shares of company stock worth $68,214,123. Company insiders own 6.30% of the company’s stock.

Institutional Investors Weigh In On Charles Schwab

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bernardo Wealth Planning LLC grew its holdings in Charles Schwab by 110.0% during the third quarter. Bernardo Wealth Planning LLC now owns 6,260 shares of the financial services provider’s stock worth $612,000 after acquiring an additional 3,279 shares during the period. Signaturefd LLC raised its position in Charles Schwab by 11.4% during the third quarter. Signaturefd LLC now owns 34,867 shares of the financial services provider’s stock valued at $3,408,000 after acquiring an additional 3,574 shares in the last quarter. BG Investment Services LLC purchased a new position in Charles Schwab during the third quarter valued at approximately $658,000. McGuire Investment Group LLC lifted its holdings in Charles Schwab by 0.6% in the third quarter. McGuire Investment Group LLC now owns 134,642 shares of the financial services provider’s stock valued at $13,160,000 after acquiring an additional 833 shares during the period. Finally, Simplicity Wealth LLC lifted its holdings in Charles Schwab by 15.0% in the third quarter. Simplicity Wealth LLC now owns 6,742 shares of the financial services provider’s stock valued at $659,000 after acquiring an additional 880 shares during the period. 84.38% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Charles Schwab

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

• Positive Sentiment: Schwab may benefit if short-term interest rates remain elevated. Higher yields can increase the income the cash-rich brokerage earns on client balances, potentially supporting net interest revenue and profitability. Why Charles Schwab Stock Could Benefit If Short Term Rates Stay Higher
• Positive Sentiment: The board declared a regular quarterly common-stock dividend of $0.32 per share, equivalent to $1.28 annually and a stated yield of approximately 1.4%. The dividend is payable November 27 to shareholders of record November 13. Schwab Declares Quarterly Common Stock Dividend and Declares Preferred Stock Dividends
• Positive Sentiment: Opening two Portland branches could expand Schwab’s local presence and support client acquisition, although the financial impact is likely modest initially. Schwab opens two new Portland branches to expand local access

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a financial services company that provides investment, wealth management, banking and related services to individual investors, financial professionals and institutional clients. Through its brokerage business, Schwab offers trading and custody services for stocks, exchange-traded funds, mutual funds, options, fixed-income securities and other investments, along with retirement accounts and investment research tools.

The company also provides advisory and wealth management services, including managed portfolios, financial planning and support for registered investment advisors.