Charles Schwab (NYSE:SCHW) Shares Down 2.5% – Here’s Why

The Charles Schwab Co. (NYSE:SCHW) traded down 2.5% during trading on Thursday . The stock traded as low as $80.29 and last traded at $80.24. 3,809,560 shares changed hands during trading, a decline of 68% from the average session volume of 12,070,032 shares. The stock had previously closed at $82.28.

Analyst Ratings Changes

Several brokerages have issued reports on SCHW. Wells Fargo & Company raised Charles Schwab from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $89.00 to $93.00 in a research note on Wednesday, January 22nd. StockNews.com raised Charles Schwab from a “sell” rating to a “hold” rating in a research note on Wednesday, October 16th. Bank of America lowered their target price on Charles Schwab from $63.00 to $61.00 and set an “underperform” rating for the company in a research note on Wednesday, October 16th. Piper Sandler boosted their price objective on Charles Schwab from $65.00 to $70.00 and gave the company a “neutral” rating in a research report on Tuesday, January 7th. Finally, UBS Group lifted their target price on shares of Charles Schwab from $90.00 to $95.00 and gave the stock a “buy” rating in a research note on Monday, January 27th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat.com, Charles Schwab has an average rating of “Hold” and a consensus price target of $84.56.

Charles Schwab Stock Performance

The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 0.59. The firm has a market cap of $144.88 billion, a P/E ratio of 27.18, a P/E/G ratio of 1.02 and a beta of 0.99. The business has a fifty day simple moving average of $78.06 and a 200-day simple moving average of $72.18.

Charles Schwab (NYSE:SCHW) last issued its quarterly earnings results on Tuesday, January 21st. The financial services provider reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $0.11. Charles Schwab had a net margin of 30.31% and a return on equity of 18.20%. The company had revenue of $5.33 billion during the quarter, compared to analyst estimates of $5.19 billion. During the same period last year, the business earned $0.68 EPS. Charles Schwab’s quarterly revenue was up 19.5% compared to the same quarter last year. On average, sell-side analysts predict that The Charles Schwab Co. will post 4.18 EPS for the current fiscal year.

Charles Schwab Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 28th. Stockholders of record on Friday, February 14th will be given a $0.27 dividend. This is a boost from Charles Schwab’s previous quarterly dividend of $0.25. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.33%. The ex-dividend date is Friday, February 14th. Charles Schwab’s payout ratio is currently 33.44%.

Insider Activity at Charles Schwab

In other news, insider Nigel J. Murtagh sold 12,739 shares of the business’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 completion of the transaction, the insider now owns 59,092 shares in the company, valued at $4,796,497.64. The trade was a 17.73 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Jonathan S. Beatty sold 2,300 shares of Charles Schwab stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $82.01, for a total value of $188,623.00. Following the completion of the sale, the insider now owns 18,069 shares of the company’s stock, valued at $1,481,838.69. The trade was a 11.29 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 47,514 shares of company stock valued at $3,859,731 in the last 90 days. Corporate insiders own 6.60% of the company’s stock.

Institutional Trading of Charles Schwab

Several large investors have recently modified their holdings of the company. Vanguard Group Inc. grew its position in shares of Charles Schwab by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 128,578,230 shares of the financial services provider’s stock valued at $9,516,075,000 after acquiring an additional 1,187,384 shares during the period. State Street Corp lifted its position in Charles Schwab by 0.7% during the third quarter. State Street Corp now owns 62,076,447 shares of the financial services provider’s stock valued at $4,023,175,000 after purchasing an additional 414,949 shares in the last quarter. Geode Capital Management LLC grew its holdings in Charles Schwab by 2.5% during the fourth quarter. Geode Capital Management LLC now owns 30,901,484 shares of the financial services provider’s stock valued at $2,279,742,000 after purchasing an additional 760,043 shares during the period. Massachusetts Financial Services Co. MA raised its stake in shares of Charles Schwab by 6.3% in the third quarter. Massachusetts Financial Services Co. MA now owns 28,679,305 shares of the financial services provider’s stock worth $1,858,706,000 after buying an additional 1,711,312 shares during the period. Finally, Franklin Resources Inc. lifted its position in shares of Charles Schwab by 15.0% during the 3rd quarter. Franklin Resources Inc. now owns 24,261,234 shares of the financial services provider’s stock valued at $1,644,674,000 after buying an additional 3,157,923 shares in the last quarter. Institutional investors own 84.38% of the company’s stock.

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.