Charles Schwab (NYSE:SCHW) Shares Up 7.2% Following Earnings Beat

Shares of The Charles Schwab Co. (NYSE:SCHW) traded up 7.2% during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $82.20 and last traded at $81.92. 3,708,003 shares traded hands during mid-day trading, a decline of 54% from the average session 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 analysts’ consensus estimates of $0.90 by $0.11. Charles Schwab had a net margin of 27.47% and a return on equity of 16.92%. The company had revenue of $5.33 billion during the quarter, compared to the consensus estimate of $5,190,822.51 billion. During the same period in the previous year, the business earned $0.68 earnings per share. The firm’s quarterly revenue was up 19.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on SCHW shares. Jefferies Financial Group boosted their target price on shares of Charles Schwab from $84.00 to $94.00 and gave the stock a “buy” rating in a research note on Monday, December 9th. Keefe, Bruyette & Woods boosted their target price on shares of Charles Schwab from $81.00 to $93.00 and gave the stock an “outperform” rating in a research note on Friday, December 20th. Piper Sandler boosted their target price on shares of Charles Schwab from $65.00 to $70.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 7th. Citigroup boosted their price objective on shares of Charles Schwab from $80.00 to $85.00 and gave the stock a “neutral” rating in a research note on Wednesday. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Charles Schwab from $87.00 to $93.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 7th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat.com, Charles Schwab has an average rating of “Hold” and an average price target of $83.83.

Insider Buying and Selling

In other Charles Schwab news, insider Nigel J. Murtagh sold 12,739 shares of the stock in a transaction that occurred on Friday, November 22nd. The shares were sold at an average price of $81.17, for a total value of $1,034,024.63. Following the sale, the insider now directly owns 59,092 shares in the company, valued at $4,796,497.64. This represents a 17.73 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Jonathan S. Beatty sold 2,500 shares of the stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $77.02, for a total transaction of $192,550.00. Following the completion of the sale, the insider now owns 18,069 shares in the company, valued at $1,391,674.38. This represents a 12.15 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 26,823 shares of company stock valued at $2,171,194. Company insiders own 6.60% of the company’s stock.

Institutional Trading of Charles Schwab

Institutional investors and hedge funds have recently bought and sold shares of the company. Stablepoint Partners LLC raised its position in shares of Charles Schwab by 1.1% during the 4th quarter. Stablepoint Partners LLC now owns 12,486 shares of the financial services provider’s stock valued at $924,000 after buying an additional 141 shares in the last quarter. Alliance Wealth Advisors LLC raised its position in shares of Charles Schwab by 2.7% during the 3rd quarter. Alliance Wealth Advisors LLC now owns 5,358 shares of the financial services provider’s stock valued at $347,000 after buying an additional 142 shares in the last quarter. Michael S. Ryan Inc. raised its position in shares of Charles Schwab by 2.5% during the 4th quarter. Michael S. Ryan Inc. now owns 5,998 shares of the financial services provider’s stock valued at $444,000 after buying an additional 144 shares in the last quarter. GS Investments Inc. grew its holdings in shares of Charles Schwab by 0.3% during the 3rd quarter. GS Investments Inc. now owns 57,434 shares of the financial services provider’s stock valued at $3,722,000 after purchasing an additional 146 shares during the last quarter. Finally, Relyea Zuckerberg Hanson LLC grew its holdings in shares of Charles Schwab by 2.8% during the 4th quarter. Relyea Zuckerberg Hanson LLC now owns 5,413 shares of the financial services provider’s stock valued at $401,000 after purchasing an additional 148 shares during the last quarter. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Charles Schwab Stock Performance

The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 0.59. The company’s fifty day moving average is $77.71 and its 200 day moving average is $70.68. The company has a market cap of $143.15 billion, a P/E ratio of 31.42, a price-to-earnings-growth ratio of 1.40 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.