Charles Schwab (NYSE:SCHW) Stock Rating Lowered by Zacks Research

Charles Schwab (NYSE:SCHW) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday, Zacks reports.

A number of other research firms have also recently issued reports on SCHW. Argus upped their price objective on shares of Charles Schwab from $108.00 to $114.00 and gave the stock a “buy” rating in a research report on Thursday, July 23rd. Weiss Ratings upgraded shares of Charles Schwab from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, September 10th. UBS Group set a $135.00 target price on shares of Charles Schwab in a research note on Monday, August 3rd. Piper Sandler set a $118.00 target price on shares of Charles Schwab in a research note on Tuesday, July 21st. Finally, Compass Point initiated coverage on shares of Charles Schwab in a report on Monday, August 3rd. They set a “buy” rating and a $135.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Charles Schwab presently has a consensus rating of “Moderate Buy” and a consensus target price of $121.17.

Charles Schwab Stock Performance

Charles Schwab stock opened at $107.86 on Monday. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52. The stock has a market cap of $186.52 billion, a PE ratio of 19.61, a P/E/G ratio of 0.94 and a beta of 0.76. Charles Schwab has a 12-month low of $83.96 and a 12-month high of $114.53. The business’s 50-day moving average price is $106.79 and its two-hundred day moving average price is $97.47.

Charles Schwab (NYSE:SCHW) last posted its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, topping analysts’ consensus estimates of $1.56 by $0.06. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The firm had revenue of $7.07 billion during the quarter, compared to analysts’ expectations of $6.90 billion. During the same quarter in the prior year, the business earned $1.14 earnings per share. The business’s revenue for the quarter was up 20.9% compared to the same quarter last year. As a group, analysts expect that Charles Schwab will post 6.46 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Dennis Howard sold 28,000 shares of Charles Schwab stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $105.01, for a total transaction of $2,940,280.00. Following the sale, the insider directly owned 10,470 shares in the company, valued at $1,099,454.70. This trade represents a 72.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Peter Morgan, III sold 6,952 shares of the business’s stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $102.03, for a total transaction of $709,312.56. The disclosure for this sale is available in the SEC filing. Insiders have sold 649,582 shares of company stock worth $69,948,015 over the last quarter. 6.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Charles Schwab

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Anchor Investment Management LLC raised its position in Charles Schwab by 10.1% during the 2nd quarter. Anchor Investment Management LLC now owns 42,549 shares of the financial services provider’s stock worth $3,926,000 after purchasing an additional 3,917 shares during the last quarter. Community Bank N.A. grew its position in shares of Charles Schwab by 36.2% in the 2nd quarter. Community Bank N.A. now owns 1,250 shares of the financial services provider’s stock valued at $115,000 after buying an additional 332 shares during the last quarter. Pointe Capital Management LLC grew its position in shares of Charles Schwab by 3.7% in the 2nd quarter. Pointe Capital Management LLC now owns 5,461 shares of the financial services provider’s stock valued at $504,000 after buying an additional 197 shares during the last quarter. Ramsay Stattman Vela & Price Inc. grew its position in shares of Charles Schwab by 11.9% in the 2nd quarter. Ramsay Stattman Vela & Price Inc. now owns 13,855 shares of the financial services provider’s stock valued at $1,278,000 after buying an additional 1,475 shares during the last quarter. Finally, Washington Trust Advisors Inc. increased its stake in shares of Charles Schwab by 118.0% in the second quarter. Washington Trust Advisors Inc. now owns 447 shares of the financial services provider’s stock valued at $41,000 after buying an additional 242 shares during the period. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Key Charles Schwab News

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Record August asset gathering supports growth. Schwab reported $64.8 billion in net new assets during August, the strongest August on record. Core net new assets rose 12% month over month and 46% year over year, signaling continued customer acquisition and retention. Schwab Books a Record August With $64.8 Billion of Net New Assets
• Positive Sentiment: Margin balances surged. Client margin balances ended August at $177.6 billion, up 92% from a year earlier. Higher balances can support interest revenue, although they also increase exposure to market volatility and client leverage. August Margin Balance Report
• Positive Sentiment: Anthropic partnership expands Schwab’s advisor technology offering. Claude for Financial Advisors will be made available to more than 16,000 independent registered investment advisors, with tools for meeting preparation, financial planning, analytics and follow-ups. Integrations with CRM, custody, portfolio reporting and planning systems could improve advisor productivity and strengthen Schwab’s custody platform. Charles Schwab and Anthropic Bring Claude AI to Advisors
• Neutral Sentiment: AI benefits remain difficult to quantify. Analysts view Schwab as taking a more prominent role in AI-enabled wealth management, but some characterize the offering as generic or late to market. The partnership may support long-term competitiveness, though near-term revenue and earnings impact are not yet clear. Schwab Anthropic Partnership Analysis
• Neutral Sentiment: Valuation comparisons are mixed. A brokerage-stock comparison highlights Schwab’s earnings momentum, diversification and valuation against Robinhood, but does not introduce a new company-specific catalyst. Robinhood Versus Schwab Comparison
• Negative Sentiment: Potential legal and reputational risk persists. Schwab reportedly faces more than $1.3 million in exposure after an 82-year-old customer’s funds were sent to a cryptocurrency scam. The matter could create costs and draw attention to fraud-prevention controls, though its ultimate financial impact is uncertain. Schwab Customer Crypto Scam Report

Charles Schwab Company Profile

The Charles Schwab Corporation is a financial services company that provides investment, wealth management and banking services to individual investors, financial professionals, employers and institutions. Its offerings include brokerage accounts, retirement accounts, investment advisory services, mutual funds, exchange-traded funds, stocks, bonds and other securities.

Through Charles Schwab Bank and related platforms, the company also provides deposit accounts, lending and cash-management services.