Zacks Research Research Analysts Decrease Earnings Estimates for The Charles Schwab Co. (NYSE:SCHW)

The Charles Schwab Co. (NYSE:SCHW) – Zacks Research dropped their Q3 2024 earnings estimates for Charles Schwab in a report released on Thursday, September 12th. Zacks Research analyst R. Department now expects that the financial services provider will earn $0.73 per share for the quarter, down from their previous estimate of $0.74. The consensus estimate for Charles Schwab’s current full-year earnings is $3.05 per share. Zacks Research also issued estimates for Charles Schwab’s FY2024 earnings at $3.02 EPS, Q1 2025 earnings at $0.87 EPS, Q2 2025 earnings at $0.94 EPS, Q3 2025 earnings at $0.99 EPS, Q4 2025 earnings at $1.07 EPS, FY2025 earnings at $3.87 EPS and Q1 2026 earnings at $1.10 EPS.

Charles Schwab (NYSE:SCHW) last issued its quarterly earnings data on Tuesday, July 16th. The financial services provider reported $0.73 EPS for the quarter, beating the consensus estimate of $0.72 by $0.01. The firm had revenue of $4.69 billion during the quarter, compared to the consensus estimate of $4.68 billion. Charles Schwab had a net margin of 26.30% and a return on equity of 18.14%. The company’s quarterly revenue was up .7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.75 earnings per share.

A number of other research firms also recently issued reports on SCHW. Wells Fargo & Company initiated coverage on shares of Charles Schwab in a research note on Thursday. They issued an “equal weight” rating and a $70.00 price target for the company. StockNews.com downgraded shares of Charles Schwab from a “hold” rating to a “sell” rating in a research note on Friday, May 24th. UBS Group decreased their price target on shares of Charles Schwab from $91.00 to $90.00 and set a “buy” rating for the company in a research note on Tuesday, July 9th. Morgan Stanley decreased their price target on shares of Charles Schwab from $71.00 to $70.00 and set an “equal weight” rating for the company in a research note on Friday, August 16th. Finally, TD Cowen reissued a “hold” rating and issued a $71.00 price target (down from $88.00) on shares of Charles Schwab in a research note on Wednesday, July 17th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $73.75.

Charles Schwab Stock Performance

Shares of NYSE:SCHW opened at $62.12 on Friday. The company has a market cap of $110.48 billion, a price-to-earnings ratio of 25.99, a price-to-earnings-growth ratio of 1.19 and a beta of 0.97. The company has a 50-day moving average price of $65.33 and a 200-day moving average price of $70.00. The company has a current ratio of 0.42, a quick ratio of 0.42 and a debt-to-equity ratio of 0.65. Charles Schwab has a 12 month low of $48.66 and a 12 month high of $79.49.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 23rd. Shareholders of record on Friday, August 9th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.61%. The ex-dividend date of this dividend was Friday, August 9th. Charles Schwab’s dividend payout ratio is 41.84%.

Insider Activity

In other news, CEO Walter W. Bettinger purchased 25,000 shares of Charles Schwab stock in a transaction that occurred on Wednesday, July 17th. The stock was bought at an average price of $66.26 per share, with a total value of $1,656,500.00. Following the completion of the transaction, the chief executive officer now directly owns 827,377 shares of the company’s stock, valued at $54,822,000.02. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In related news, Director Carolyn Schwab-Pomerantz sold 12,320 shares of the firm’s stock in a transaction that occurred on Thursday, August 15th. The shares were sold at an average price of $65.10, for a total transaction of $802,032.00. Following the completion of the sale, the director now owns 562,129 shares of the company’s stock, valued at $36,594,597.90. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Walter W. Bettinger purchased 25,000 shares of Charles Schwab stock in a transaction that occurred on Wednesday, July 17th. The shares were purchased at an average cost of $66.26 per share, with a total value of $1,656,500.00. Following the transaction, the chief executive officer now directly owns 827,377 shares of the company’s stock, valued at $54,822,000.02. The disclosure for this purchase can be found here. Insiders have sold a total of 99,636 shares of company stock worth $6,533,064 over the last 90 days. 6.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Charles Schwab

A number of large investors have recently added to or reduced their stakes in SCHW. Price T Rowe Associates Inc. MD grew its position in Charles Schwab by 33.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 69,360,233 shares of the financial services provider’s stock worth $4,771,985,000 after purchasing an additional 17,369,091 shares during the period. Norges Bank bought a new stake in Charles Schwab in the 4th quarter worth approximately $950,192,000. Morningstar Investment Services LLC grew its position in Charles Schwab by 98.0% in the 4th quarter. Morningstar Investment Services LLC now owns 4,691,362 shares of the financial services provider’s stock worth $326,284,000 after purchasing an additional 2,322,156 shares during the period. Darsana Capital Partners LP grew its position in Charles Schwab by 200.0% in the 2nd quarter. Darsana Capital Partners LP now owns 3,000,000 shares of the financial services provider’s stock worth $221,070,000 after purchasing an additional 2,000,000 shares during the period. Finally, Franklin Resources Inc. grew its position in Charles Schwab by 19.7% in the 4th quarter. Franklin Resources Inc. now owns 9,472,698 shares of the financial services provider’s stock worth $651,722,000 after purchasing an additional 1,558,975 shares during the period. Institutional investors own 84.38% of the company’s stock.

Charles Schwab Company Profile

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.