Charles Schwab (NYSE:SCHW) Shares Up 7.2% After Better-Than-Expected Earnings

The Charles Schwab Co. (NYSE:SCHW)’s share price rose 7.2% during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $82.20 and last traded at $81.92. Approximately 3,708,003 shares were traded during trading, a decline of 54% from the average daily volume of 8,066,129 shares. The stock had previously closed at $76.41.

The financial services provider reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.90 by $0.11. The company had revenue of $5.33 billion for the quarter, compared to analyst estimates of $5,190,822.51 billion. Charles Schwab had a return on equity of 16.92% and a net margin of 27.47%. The company’s revenue was up 19.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.68 EPS.

Charles Schwab Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, November 22nd. Stockholders of record on Friday, November 8th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.23%. The ex-dividend date of this dividend was Friday, November 8th. Charles Schwab’s payout ratio is presently 39.06%.

Analysts Set New Price Targets

A number of research firms have issued reports on SCHW. Piper Sandler upped their target price on shares of Charles Schwab from $65.00 to $70.00 and gave the company a “neutral” rating in a research report on Tuesday, January 7th. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Charles Schwab from $77.00 to $80.00 and gave the company a “buy” rating in a research note on Monday, November 11th. Raymond James dropped their target price on shares of Charles Schwab from $76.00 to $73.00 in a research report on Tuesday, October 15th. JPMorgan Chase & Co. raised their price target on Charles Schwab from $87.00 to $93.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 7th. Finally, Cowen upped their price objective on Charles Schwab from $69.00 to $75.00 and gave the company a “hold” rating in a report on Tuesday, October 15th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $81.41.

Insiders Place Their Bets

In related news, insider Jonathan S. Beatty sold 2,300 shares of the stock in a transaction on Monday, November 25th. The stock was sold at an average price of $82.01, for a total value of $188,623.00. Following the completion of the sale, the insider now directly owns 18,069 shares of the company’s stock, valued at approximately $1,481,838.69. This represents a 11.29 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Christopher V. Dodds sold 9,284 shares of the business’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $81.43, for a total transaction of $755,996.12. Following the transaction, the director now owns 442,807 shares in the company, valued at approximately $36,057,774.01. This trade represents a 2.05 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 26,823 shares of company stock worth $2,171,194. 6.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Charles Schwab

Institutional investors have recently added to or reduced their stakes in the business. Capital Performance Advisors LLP purchased a new stake in shares of Charles Schwab in the third quarter worth $25,000. Washington Trust Advisors Inc. raised its holdings in shares of Charles Schwab by 62.6% during the 3rd quarter. Washington Trust Advisors Inc. now owns 387 shares of the financial services provider’s stock valued at $25,000 after buying an additional 149 shares in the last quarter. Prospera Private Wealth LLC bought a new stake in shares of Charles Schwab in the 3rd quarter worth approximately $31,000. Future Financial Wealth Managment LLC bought a new stake in Charles Schwab in the third quarter worth $32,000. Finally, Planning Capital Management Corp purchased a new stake in Charles Schwab during the third quarter valued at about $33,000. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Trading Up 6.0 %

The firm has a 50-day moving average of $77.65 and a 200-day moving average of $70.62. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.47 and a current ratio of 0.47. The firm has a market capitalization of $144.15 billion, a P/E ratio of 31.88, a price-to-earnings-growth ratio of 1.41 and a beta of 0.99.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.