Brokerages forecast that Charles Schwab Co. (NYSE:SCHW) will report sales of $2.70 billion for the current fiscal quarter, Zacks Investment Research reports. Five analysts have provided estimates for Charles Schwab’s earnings. The lowest sales estimate is $2.62 billion and the highest is $2.75 billion. Charles Schwab posted sales of $2.40 billion in the same quarter last year, which suggests a positive year over year growth rate of 12.5%. The firm is expected to report its next quarterly earnings results on Monday, April 15th.
On average, analysts expect that Charles Schwab will report full year sales of $11.17 billion for the current year, with estimates ranging from $10.81 billion to $11.38 billion. For the next fiscal year, analysts forecast that the business will report sales of $11.88 billion, with estimates ranging from $11.42 billion to $12.22 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side research firms that cover Charles Schwab.
Charles Schwab (NYSE:SCHW) last released its quarterly earnings results on Wednesday, January 16th. The financial services provider reported $0.65 EPS for the quarter, beating the Zacks’ consensus estimate of $0.64 by $0.01. The firm had revenue of $2.67 billion for the quarter, compared to analyst estimates of $2.64 billion. Charles Schwab had a net margin of 34.61% and a return on equity of 20.28%. The company’s revenue for the quarter was up 19.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.44 earnings per share.
A number of equities analysts have recently issued reports on SCHW shares. UBS Group lowered shares of Charles Schwab from a “buy” rating to a “neutral” rating in a research report on Monday, November 19th. Zacks Investment Research lowered shares of Charles Schwab from a “hold” rating to a “sell” rating in a research report on Monday, January 14th. Morgan Stanley reduced their target price on shares of Charles Schwab from $60.00 to $55.00 and set an “overweight” rating on the stock in a research report on Friday, January 4th. Raymond James upgraded shares of Charles Schwab from a “market perform” rating to an “outperform” rating and set a $54.00 target price on the stock in a research report on Tuesday, October 30th. They noted that the move was a valuation call. Finally, Wells Fargo & Co reduced their target price on shares of Charles Schwab from $53.00 to $44.00 and set a “market perform” rating on the stock in a research report on Friday, January 4th. Eight analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $54.31.
NYSE:SCHW traded down $0.02 on Wednesday, reaching $44.74. The stock had a trading volume of 4,468,389 shares, compared to its average volume of 7,113,678. Charles Schwab has a 1-year low of $37.83 and a 1-year high of $60.22. The firm has a market cap of $60.45 billion, a PE ratio of 18.26, a price-to-earnings-growth ratio of 1.03 and a beta of 1.37. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 0.32.
Charles Schwab declared that its Board of Directors has authorized a stock buyback plan on Thursday, October 25th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 1.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 28th. Investors of record on Thursday, February 14th will be issued a $0.17 dividend. This is a positive change from Charles Schwab’s previous quarterly dividend of $0.13. This represents a $0.68 annualized dividend and a yield of 1.52%. The ex-dividend date is Wednesday, February 13th. Charles Schwab’s dividend payout ratio is currently 21.22%.
In other news, CEO Walter W. Bettinger bought 93,090 shares of the stock in a transaction on Monday, December 24th. The stock was purchased at an average price of $39.09 per share, with a total value of $3,638,888.10. Following the completion of the purchase, the chief executive officer now owns 335,093 shares of the company’s stock, valued at $13,098,785.37. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Chairman Charles R. Schwab sold 383,000 shares of the company’s stock in a transaction that occurred on Thursday, November 15th. The shares were sold at an average price of $46.97, for a total transaction of $17,989,510.00. The disclosure for this sale can be found here. Insiders sold 641,652 shares of company stock worth $30,138,896 over the last 90 days. 11.50% of the stock is currently owned by company insiders.
A number of large investors have recently modified their holdings of SCHW. Vanguard Group Inc grew its position in Charles Schwab by 0.9% in the third quarter. Vanguard Group Inc now owns 88,586,138 shares of the financial services provider’s stock valued at $4,354,008,000 after purchasing an additional 820,257 shares in the last quarter. BlackRock Inc. grew its position in Charles Schwab by 2.6% in the third quarter. BlackRock Inc. now owns 86,976,839 shares of the financial services provider’s stock valued at $4,274,909,000 after purchasing an additional 2,179,682 shares in the last quarter. FMR LLC grew its position in Charles Schwab by 13.7% in the second quarter. FMR LLC now owns 65,193,384 shares of the financial services provider’s stock valued at $3,331,382,000 after purchasing an additional 7,868,551 shares in the last quarter. Edgewood Management LLC grew its position in Charles Schwab by 1.6% in the third quarter. Edgewood Management LLC now owns 21,966,947 shares of the financial services provider’s stock valued at $1,079,675,000 after purchasing an additional 349,106 shares in the last quarter. Finally, Parnassus Investments CA grew its position in Charles Schwab by 22.3% in the fourth quarter. Parnassus Investments CA now owns 15,623,778 shares of the financial services provider’s stock valued at $648,856,000 after purchasing an additional 2,850,678 shares in the last quarter. 79.78% of the stock is owned by hedge funds and other institutional investors.
Charles Schwab Company Profile
The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.
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