Charles Schwab (NYSE:SCHW) Shares Down 4% – Here’s Why

The Charles Schwab Co. (NYSE:SCHW) was down 4% during trading on Tuesday . The company traded as low as $71.47 and last traded at $71.48. Approximately 1,742,390 shares changed hands during mid-day trading, a decline of 64% from the average daily volume of 4,817,441 shares. The stock had previously closed at $74.48.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Cowen increased their price objective on shares of Charles Schwab from $69.00 to $75.00 and gave the company a “hold” rating in a research note on Tuesday, October 15th. Piper Sandler lifted their price objective on Charles Schwab from $65.00 to $70.00 and gave the company a “neutral” rating in a report on Tuesday. Bank of America dropped their target price on Charles Schwab from $63.00 to $61.00 and set an “underperform” rating for the company in a report on Wednesday, October 16th. Wells Fargo & Company boosted their price target on Charles Schwab from $75.00 to $90.00 and gave the company an “equal weight” rating in a research note on Thursday, December 12th. Finally, JPMorgan Chase & Co. lifted their price objective on Charles Schwab from $86.00 to $87.00 and gave the company an “overweight” rating in a report on Wednesday, October 16th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and eight have given a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $80.81.

Charles Schwab Trading Down 1.8 %

The business’s 50-day simple moving average is $77.45 and its 200-day simple moving average is $70.62. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.47 and a current ratio of 0.47. The company has a market capitalization of $130.20 billion, a price-to-earnings ratio of 28.58, a P/E/G ratio of 1.76 and a beta of 0.99.

Charles Schwab (NYSE:SCHW) last announced its quarterly earnings data on Tuesday, October 15th. The financial services provider reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.75 by $0.02. The firm had revenue of $4.85 billion for the quarter, compared to analysts’ expectations of $4.78 billion. Charles Schwab had a net margin of 27.47% and a return on equity of 16.92%. The business’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same period last year, the firm earned $0.77 earnings per share. On average, research analysts expect that The Charles Schwab Co. will post 3.12 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, November 22nd. Shareholders of record on Friday, November 8th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.37%. The ex-dividend date was Friday, November 8th. Charles Schwab’s payout ratio is 39.06%.

Insider Transactions at Charles Schwab

In other Charles Schwab news, Director Carolyn Schwab-Pomerantz sold 29,800 shares of the business’s stock in a transaction that occurred on Thursday, October 17th. The stock was sold at an average price of $72.16, for a total transaction of $2,150,368.00. Following the transaction, the director now owns 551,329 shares of the company’s stock, valued at $39,783,900.64. The trade was a 5.13 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Chairman Charles R. Schwab sold 62,345 shares of the stock in a transaction that occurred on Wednesday, October 16th. The shares were sold at an average price of $72.52, for a total value of $4,521,259.40. Following the completion of the sale, the chairman now directly owns 60,619,371 shares of the company’s stock, valued at approximately $4,396,116,784.92. The trade was a 0.10 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 118,968 shares of company stock valued at $8,842,821 over the last three months. 6.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Diversified Trust Co boosted its stake in shares of Charles Schwab by 13.3% during the 4th quarter. Diversified Trust Co now owns 8,215 shares of the financial services provider’s stock worth $608,000 after acquiring an additional 962 shares during the period. Canandaigua National Bank & Trust Co. increased its holdings in shares of Charles Schwab by 6.7% in the fourth quarter. Canandaigua National Bank & Trust Co. now owns 33,176 shares of the financial services provider’s stock valued at $2,455,000 after purchasing an additional 2,092 shares during the last quarter. Oliver Luxxe Assets LLC lifted its stake in shares of Charles Schwab by 61.9% during the 4th quarter. Oliver Luxxe Assets LLC now owns 60,655 shares of the financial services provider’s stock worth $4,489,000 after buying an additional 23,187 shares during the last quarter. Iowa State Bank boosted its holdings in shares of Charles Schwab by 4.9% during the 4th quarter. Iowa State Bank now owns 29,860 shares of the financial services provider’s stock worth $2,210,000 after buying an additional 1,384 shares during the period. Finally, Hiley Hunt Wealth Management bought a new stake in shares of Charles Schwab during the 4th quarter worth about $228,000. 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.