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

The Charles Schwab Co. (NYSE:SCHW) – Analysts at Zacks Research decreased their Q3 2024 earnings estimates for Charles Schwab in a research note issued on Wednesday, August 7th. Zacks Research analyst R. Department now anticipates that the financial services provider will post earnings per share of $0.74 for the quarter, down from their prior forecast of $0.76. The consensus estimate for Charles Schwab’s current full-year earnings is $3.07 per share. Zacks Research also issued estimates for Charles Schwab’s Q4 2024 earnings at $0.82 EPS, FY2024 earnings at $3.04 EPS, Q1 2025 earnings at $0.89 EPS, Q2 2025 earnings at $0.96 EPS, Q3 2025 earnings at $1.01 EPS, Q4 2025 earnings at $1.08 EPS, FY2025 earnings at $3.94 EPS, Q1 2026 earnings at $1.12 EPS, Q2 2026 earnings at $1.18 EPS and FY2026 earnings at $4.77 EPS.

Charles Schwab (NYSE:SCHW) last issued its quarterly earnings data on Tuesday, July 16th. The financial services provider reported $0.73 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.72 by $0.01. Charles Schwab had a return on equity of 18.65% and a net margin of 26.30%. The company had revenue of $4.69 billion during the quarter, compared to analysts’ expectations of $4.68 billion. During the same quarter in the previous year, the company posted $0.75 earnings per share. The business’s revenue was up .7% on a year-over-year basis.

A number of other research analysts also recently commented on the company. Jefferies Financial Group boosted their price target on Charles Schwab from $85.00 to $88.00 and gave the company a “buy” rating in a research note on Monday, July 8th. Barclays decreased their target price on Charles Schwab from $77.00 to $68.00 and set an “equal weight” rating on the stock in a research report on Wednesday, July 17th. Keefe, Bruyette & Woods upgraded shares of Charles Schwab from a “market perform” rating to an “outperform” rating and upped their price objective for the stock from $76.00 to $84.00 in a research report on Monday, July 8th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Charles Schwab from $84.00 to $79.00 and set a “buy” rating on the stock in a research note on Wednesday, July 17th. Finally, UBS Group cut their price objective on Charles Schwab from $91.00 to $90.00 and set a “buy” rating on the stock in a report on Tuesday, July 9th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and seven have issued a buy rating to the stock. According to MarketBeat.com, Charles Schwab presently has an average rating of “Hold” and a consensus price target of $74.27.

Charles Schwab Stock Performance

Shares of SCHW stock traded down $0.12 on Thursday, hitting $62.41. The company’s stock had a trading volume of 4,255,160 shares, compared to its average volume of 13,392,225. Charles Schwab has a fifty-two week low of $48.66 and a fifty-two week high of $79.49. The company has a market capitalization of $110.92 billion, a PE ratio of 26.11, a PEG ratio of 1.18 and a beta of 0.99. The stock’s 50 day moving average is $70.07 and its 200-day moving average is $69.93. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.42 and a current ratio of 0.42.

Charles Schwab Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 23rd. Stockholders of record on Friday, August 9th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Friday, August 9th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.60%. Charles Schwab’s payout ratio is presently 41.84%.

Insiders Place Their Bets

In related news, President Richard A. Wurster acquired 10,000 shares of the stock in a transaction on Wednesday, July 17th. The shares were acquired at an average price of $62.05 per share, with a total value of $620,500.00. Following the completion of the transaction, the president now owns 144,228 shares in the company, valued at approximately $8,949,347.40. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other news, CEO Walter W. Bettinger purchased 25,000 shares of the business’s stock in a transaction on Wednesday, July 17th. The stock was purchased at an average cost of $66.26 per share, with a total value of $1,656,500.00. Following the acquisition, the chief executive officer now directly owns 827,377 shares in the company, valued at $54,822,000.02. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, President Richard A. Wurster acquired 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, July 17th. The shares were acquired at an average cost of $62.05 per share, with a total value of $620,500.00. Following the purchase, the president now directly owns 144,228 shares of the company’s stock, valued at approximately $8,949,347.40. The disclosure for this purchase can be found here. Over the last quarter, insiders have sold 247,271 shares of company stock valued at $17,567,508. Insiders own 6.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Cranbrook Wealth Management LLC bought a new stake in Charles Schwab in the 2nd quarter worth approximately $238,000. L & S Advisors Inc purchased a new stake in shares of Charles Schwab in the 2nd quarter valued at $1,656,000. Virtu Financial LLC boosted its position in Charles Schwab by 311.8% during the second quarter. Virtu Financial LLC now owns 17,858 shares of the financial services provider’s stock valued at $1,316,000 after buying an additional 13,521 shares during the period. Plancorp LLC grew its stake in shares of Charles Schwab by 6.3% during the second quarter. Plancorp LLC now owns 3,108 shares of the financial services provider’s stock valued at $229,000 after buying an additional 184 shares during the last quarter. Finally, Sargent Investment Group LLC bought a new stake in shares of Charles Schwab in the 2nd quarter valued at about $260,000. 84.38% of the stock is currently owned by institutional investors.

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.