Charles Schwab (NYSE:SCHW) Downgraded by Zacks Research to Hold

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

A number of other equities analysts have also weighed in on SCHW. Compass Point assumed coverage on Charles Schwab in a research report on Monday, August 3rd. They issued a “buy” rating and a $135.00 price target for the company. Raymond James Financial reissued an “outperform” rating and issued a $145.00 target price on shares of Charles Schwab in a research report on Wednesday, July 22nd. Piper Sandler set a $118.00 price objective on Charles Schwab in a research note on Tuesday, July 21st. BMO Capital Markets lowered Charles Schwab from an “outperform” rating to a “market perform” rating and set a $105.00 price objective for the company. in a research report on Monday, July 20th. Finally, Weiss Ratings raised shares of Charles Schwab from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, September 10th. One research 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 assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $121.17.

Charles Schwab Stock Up 0.5%

NYSE SCHW opened at $107.86 on Monday. Charles Schwab has a 12 month low of $83.96 and a 12 month high of $114.53. The company has a market capitalization of $186.52 billion, a P/E ratio of 19.61, a PEG ratio of 0.94 and a beta of 0.76. The company’s 50 day simple moving average is $106.79 and its 200 day simple moving average is $97.47. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.64 and a quick ratio of 0.64.

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

Insider Buying and Selling at Charles Schwab

In other news, insider Dennis Howard sold 28,000 shares of the firm’s stock in a transaction 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 transaction, the insider owned 10,470 shares in the company, valued at approximately $1,099,454.70. This trade represents a 72.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula Sneed sold 5,263 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $107.15, for a total value of $563,930.45. Following the completion of the transaction, the director directly owned 91,711 shares in the company, valued at $9,826,833.65. The trade was a 5.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 649,582 shares of company stock worth $69,948,015 in the last ninety days. Company insiders own 6.30% of the company’s stock.

Institutional Investors Weigh In On Charles Schwab

Several hedge funds have recently modified their holdings of the business. Essex Financial Services Inc. raised its stake in shares of Charles Schwab by 0.8% in the fourth quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider’s stock valued at $1,282,000 after acquiring an additional 105 shares during the last quarter. Sheets Smith Wealth Management boosted its holdings in shares of Charles Schwab by 0.7% in the 1st quarter. Sheets Smith Wealth Management now owns 14,521 shares of the financial services provider’s stock worth $1,365,000 after acquiring an additional 108 shares in the last quarter. Peoples Bank KS grew its position in Charles Schwab by 2.7% during the 2nd quarter. Peoples Bank KS now owns 4,331 shares of the financial services provider’s stock worth $400,000 after acquiring an additional 113 shares during the last quarter. Sweeney & Michel LLC grew its position in Charles Schwab by 1.6% during the 1st quarter. Sweeney & Michel LLC now owns 7,333 shares of the financial services provider’s stock worth $710,000 after acquiring an additional 115 shares during the last quarter. Finally, Crumly & Associates Inc. increased its holdings in Charles Schwab by 1.1% during the 2nd quarter. Crumly & Associates Inc. now owns 10,479 shares of the financial services provider’s stock valued at $967,000 after purchasing an additional 115 shares in the last quarter. 84.38% of the stock is owned by institutional investors.

Key Stories Impacting Charles Schwab

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

About Charles Schwab

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.