Charles Schwab (NYSE:SCHW) Shares Gap Up on Earnings Beat

The Charles Schwab Co. (NYSE:SCHW) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $67.82, but opened at $72.60. Charles Schwab shares last traded at $72.74, with a volume of 4,987,136 shares trading hands.

The financial services provider reported $0.77 earnings per share for the quarter, beating analysts’ consensus estimates of $0.75 by $0.02. Charles Schwab had a return on equity of 18.14% and a net margin of 26.30%. The company had revenue of $4.85 billion for the quarter, compared to analysts’ expectations of $4.78 billion. During the same quarter in the previous year, the company posted $0.77 earnings per share. The business’s revenue for the quarter was up 5.2% compared to the same quarter last year.

Charles Schwab Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 23rd. Stockholders of record on Friday, August 9th were paid a $0.25 dividend. The ex-dividend date of this dividend was Friday, August 9th. This represents a $1.00 annualized dividend and a dividend yield of 1.37%. Charles Schwab’s payout ratio is 41.49%.

Analysts Set New Price Targets

Several brokerages recently commented on SCHW. Piper Sandler cut Charles Schwab from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $80.00 to $64.00 in a report on Monday, July 29th. Wells Fargo & Company initiated coverage on Charles Schwab in a research note on Thursday, September 12th. They issued an “equal weight” rating and a $70.00 price objective on the stock. Raymond James decreased their target price on Charles Schwab from $76.00 to $73.00 in a research note on Tuesday. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Charles Schwab from $77.00 to $76.00 in a research report on Tuesday. Finally, Cowen raised their price objective on shares of Charles Schwab from $69.00 to $75.00 and gave the company a “hold” rating in a research report on Tuesday. Three analysts have rated the stock with a sell rating, eight have given a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $71.82.

Insider Activity

In other Charles Schwab news, Director Carolyn Schwab-Pomerantz sold 9,000 shares of the firm’s stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $64.05, for a total transaction of $576,450.00. Following the completion of the sale, the director now directly owns 554,929 shares in the company, valued at approximately $35,543,202.45. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other news, CEO Walter W. Bettinger acquired 25,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 17th. The stock was acquired at an average cost of $66.26 per share, for a total transaction of $1,656,500.00. Following the completion of the acquisition, the chief executive officer now owns 827,377 shares in the company, valued at approximately $54,822,000.02. The trade was a 0.00 % increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Carolyn Schwab-Pomerantz sold 9,000 shares of the business’s stock in a transaction dated Tuesday, September 17th. The shares were sold at an average price of $64.05, for a total value of $576,450.00. Following the completion of the transaction, the director now owns 554,929 shares in the company, valued at $35,543,202.45. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 98,856 shares of company stock worth $6,398,604 over the last quarter. Corporate insiders own 6.60% of the company’s stock.

Institutional Investors Weigh In On Charles Schwab

Several institutional investors have recently made changes to their positions in SCHW. Creative Planning raised its position in Charles Schwab by 18.3% during the third quarter. Creative Planning now owns 511,376 shares of the financial services provider’s stock valued at $31,891,000 after acquiring an additional 79,166 shares in the last quarter. Harrington Investments INC raised its holdings in shares of Charles Schwab by 3.6% during the 3rd quarter. Harrington Investments INC now owns 56,527 shares of the financial services provider’s stock valued at $3,664,000 after purchasing an additional 1,940 shares in the last quarter. Novare Capital Management LLC lifted its stake in shares of Charles Schwab by 17.2% in the 3rd quarter. Novare Capital Management LLC now owns 13,524 shares of the financial services provider’s stock valued at $876,000 after purchasing an additional 1,986 shares during the last quarter. Stablepoint Partners LLC boosted its holdings in Charles Schwab by 5.3% in the third quarter. Stablepoint Partners LLC now owns 12,345 shares of the financial services provider’s stock worth $800,000 after purchasing an additional 624 shares in the last quarter. Finally, ORG Wealth Partners LLC acquired a new position in Charles Schwab during the third quarter worth $41,000. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Charles Schwab Trading Up 7.5 %

The company has a fifty day simple moving average of $64.23 and a two-hundred day simple moving average of $69.49. The company has a market capitalization of $129.63 billion, a P/E ratio of 30.51, a price-to-earnings-growth ratio of 1.43 and a beta of 0.97. The company has a debt-to-equity ratio of 0.65, a current ratio of 0.42 and a quick ratio of 0.42.

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.