Charles Schwab (NYSE:SCHW) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Charles Schwab (NYSE:SCHW) announced its quarterly earnings data on Thursday. The financial services provider reported $1.69 EPS for the quarter, topping analysts’ consensus estimates of $1.65 by $0.04, Zacks reports. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%.

Charles Schwab Stock Performance

Shares of Charles Schwab stock opened at $96.97 on Thursday. The business’s fifty day simple moving average is $105.07 and its 200-day simple moving average is $98.18. 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 firm has a market cap of $167.69 billion, a PE ratio of 17.63, a price-to-earnings-growth ratio of 0.81 and a beta of 0.79. Charles Schwab has a 52 week low of $83.96 and a 52 week high of $114.53.

Charles Schwab Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were given a $0.32 dividend. The ex-dividend date was Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a yield of 1.3%. Charles Schwab’s payout ratio is currently 23.27%.

Key Stories Impacting Charles Schwab

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

• Positive Sentiment: Analysts expect solid third-quarter results, with consensus estimates calling for approximately $1.66 in earnings per share and $7.19 billion in revenue. Investors will be watching whether client-asset growth and asset-gathering trends deliver the anticipated earnings acceleration. Charles Schwab Earnings to Spotlight Success at Asset Gathering
• Positive Sentiment: Erste Group Bank raised its fiscal 2027 EPS forecast for Charles Schwab to $7.96 from $7.85, signaling improved expectations for the company’s longer-term earnings outlook. Erste Group Bank Lifts Earnings Estimates for Charles Schwab
• Positive Sentiment: Truist Financial lowered its price target to $125 from $130 but maintained a Buy rating. The revised target still implies substantial upside from recent trading levels, limiting the negative impact of the reduction. Charles Schwab Stock Price Target Cut by Truist Financial
• Neutral Sentiment: Options markets are pricing in a potentially large earnings-related move for SCHW, reflecting heightened uncertainty rather than a clear directional signal. Charles Schwab Could Swing $6.23 Billion After Earnings
• Neutral Sentiment: Evercore ISI initiated coverage with an In-Line rating, while broader market commentary identified Schwab as a potential bargain stock. These views provide valuation context but are unlikely to materially change sentiment ahead of earnings. Evercore ISI Initiates Coverage of Charles Schwab

Insider Transactions at Charles Schwab

In other Charles Schwab news, insider Nigel J. Murtagh sold 32,947 shares of the company’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $104.01, for a total transaction of $3,426,817.47. Following the transaction, the insider directly owned 57,972 shares in the company, valued at $6,029,667.72. This represents a 36.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dennis Howard sold 28,000 shares of the firm’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $105.01, for a total value of $2,940,280.00. Following the transaction, the insider owned 10,470 shares of the company’s stock, valued at approximately $1,099,454.70. This represents a 72.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 645,582 shares of company stock worth $69,553,935. 6.30% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several analysts have issued reports on SCHW shares. Raymond James Financial restated an “outperform” rating and issued a $145.00 target price on shares of Charles Schwab in a report on Wednesday, July 22nd. Zacks Research lowered Charles Schwab from a “strong-buy” rating to a “hold” rating in a report on Monday, September 14th. Wells Fargo & Company started coverage on shares of Charles Schwab in a research report on Friday, October 2nd. They set an “equal weight” rating and a $105.00 price target on the stock. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Finally, Piper Sandler cut their price objective on shares of Charles Schwab from $118.00 to $100.00 and set a “neutral” rating for the company in a research report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Charles Schwab currently has a consensus rating of “Moderate Buy” and an average target price of $119.00.

Charles Schwab Company Profile

Charles Schwab Corporation (NYSE:SCHW) is a financial services company that provides brokerage, investment, banking and wealth management services to individual investors, employers, institutions and independent investment advisors. Its offerings include online and mobile trading, securities brokerage, retirement accounts, financial planning, portfolio management, banking products, research and access to mutual funds and exchange-traded funds.

The company operates through businesses including Schwab Brokerage, Schwab Wealth Advisory, Schwab Asset Management and Charles Schwab Bank.