Erste Group Bank Predicts Higher Earnings for Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) – Erste Group Bank upped their FY2026 EPS estimates for Charles Schwab in a research report issued on Friday, June 5th. Erste Group Bank analyst S. Lingnau now anticipates that the financial services provider will post earnings of $6.16 per share for the year, up from their prior estimate of $6.01. The consensus estimate for Charles Schwab’s current full-year earnings is $6.12 per share. Erste Group Bank also issued estimates for Charles Schwab’s FY2027 earnings at $7.26 EPS.

Charles Schwab (NYSE:SCHW) last posted its earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.04. The company had revenue of $6.48 billion for the quarter, compared to analyst estimates of $6.39 billion. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The business’s revenue for the quarter was up 15.8% compared to the same quarter last year. During the same period last year, the business posted $1.04 earnings per share. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS.

Several other research analysts have also weighed in on the company. Morgan Stanley reduced their target price on Charles Schwab from $135.00 to $125.00 and set an “overweight” rating on the stock in a report on Friday, April 17th. Keefe, Bruyette & Woods assumed coverage on Charles Schwab in a report on Wednesday, April 8th. They issued an “outperform” rating and a $110.00 price target for the company. Argus set a $108.00 price objective on Charles Schwab in a report on Monday, April 20th. Jefferies Financial Group decreased their price objective on Charles Schwab from $122.00 to $118.00 and set a “buy” rating for the company in a research report on Monday, April 6th. Finally, TD Cowen increased their target price on Charles Schwab from $108.00 to $109.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $116.00.

Charles Schwab Price Performance

Shares of SCHW stock opened at $89.21 on Thursday. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.48. Charles Schwab has a 12-month low of $83.96 and a 12-month high of $107.50. The firm has a fifty day moving average of $91.18 and a 200-day moving average of $95.30. The firm has a market capitalization of $155.14 billion, a price-to-earnings ratio of 17.70, a price-to-earnings-growth ratio of 0.84 and a beta of 0.77.

Institutional Trading of Charles Schwab

A number of large investors have recently added to or reduced their stakes in the company. Dogwood Wealth Management LLC increased its stake in shares of Charles Schwab by 99.2% during the 4th quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider’s stock worth $25,000 after purchasing an additional 123 shares during the last quarter. Piscataqua Savings Bank acquired a new stake in Charles Schwab in the 4th quarter valued at about $26,000. GoalVest Advisory LLC bought a new position in Charles Schwab during the fourth quarter worth about $28,000. Beacon Financial Strategies CORP bought a new position in Charles Schwab during the fourth quarter worth about $29,000. Finally, Scarborough Advisors LLC acquired a new position in Charles Schwab during the first quarter worth approximately $29,000. Institutional investors and hedge funds own 84.38% of the company’s stock.

Insider Activity at Charles Schwab

In other news, insider Nigel J. Murtagh sold 41,297 shares of the stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $99.00, for a total value of $4,088,403.00. Following the completion of the sale, the insider owned 57,972 shares of the company’s stock, valued at approximately $5,739,228. This represents a 41.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the firm’s stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total transaction of $228,312.00. Following the completion of the transaction, the director directly owned 177,508 shares of the company’s stock, valued at $16,082,224.80. This represents a 1.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 59,700 shares of company stock valued at $5,889,131. Insiders own 6.30% of the company’s stock.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were given a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.28 annualized dividend and a yield of 1.4%. Charles Schwab’s dividend payout ratio is 25.40%.

About Charles Schwab

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.