William Blair Research Analysts Reduce Earnings Estimates for The Charles Schwab Co. (NYSE:SCHW)

The Charles Schwab Co. (NYSE:SCHW – Get Rating) – Equities research analysts at William Blair decreased their Q3 2023 earnings estimates for Charles Schwab in a research note issued on Tuesday, May 23rd. William Blair analyst J. Schmitt now forecasts that the financial services provider will post earnings per share of $0.87 for the quarter, down from their previous estimate of $0.88. The consensus estimate for Charles Schwab’s current full-year earnings is $3.35 per share. William Blair also issued estimates for Charles Schwab’s Q4 2023 earnings at $0.98 EPS, FY2023 earnings at $3.63 EPS and FY2024 earnings at $4.61 EPS.

Charles Schwab (NYSE:SCHW – Get Rating) last issued its earnings results on Monday, April 17th. The financial services provider reported $0.93 EPS for the quarter, topping the consensus estimate of $0.90 by $0.03. Charles Schwab had a net margin of 34.82% and a return on equity of 27.83%. The company had revenue of $5.12 billion for the quarter, compared to the consensus estimate of $5.13 billion. During the same period in the previous year, the firm earned $0.77 earnings per share. The firm’s revenue for the quarter was up 9.5% on a year-over-year basis.

Other analysts have also recently issued research reports about the stock. Piper Sandler cut their price target on shares of Charles Schwab from $83.00 to $75.00 in a report on Tuesday, April 18th. StockNews.com upgraded shares of Charles Schwab from a “sell” rating to a “hold” rating in a report on Friday, May 19th. Citigroup dropped their target price on shares of Charles Schwab from $75.00 to $65.00 and set a “buy” rating on the stock in a report on Wednesday, March 29th. Raymond James upgraded shares of Charles Schwab from a “market perform” rating to an “outperform” rating and set a $63.00 target price on the stock in a report on Monday, May 15th. Finally, The Goldman Sachs Group dropped their target price on shares of Charles Schwab from $98.00 to $75.00 and set a “buy” rating on the stock in a report on Tuesday, March 14th. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and twelve have issued a buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $68.73.

Charles Schwab Stock Performance

NYSE:SCHW opened at $54.24 on Wednesday. The stock has a market cap of $95.96 billion, a P/E ratio of 14.82, a price-to-earnings-growth ratio of 2.71 and a beta of 0.88. The firm’s fifty day simple moving average is $51.85 and its 200 day simple moving average is $69.30. Charles Schwab has a twelve month low of $45.00 and a twelve month high of $86.63. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.74.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Vontobel Holding Ltd. raised its holdings in Charles Schwab by 7.5% during the 1st quarter. Vontobel Holding Ltd. now owns 20,822 shares of the financial services provider’s stock valued at $1,847,000 after buying an additional 1,452 shares during the period. Moors & Cabot Inc. raised its holdings in Charles Schwab by 4.3% during the 1st quarter. Moors & Cabot Inc. now owns 6,263 shares of the financial services provider’s stock valued at $528,000 after buying an additional 259 shares during the period. Sequoia Financial Advisors LLC raised its holdings in Charles Schwab by 25.4% during the 1st quarter. Sequoia Financial Advisors LLC now owns 13,064 shares of the financial services provider’s stock valued at $1,101,000 after buying an additional 2,648 shares during the period. Brighton Jones LLC raised its holdings in Charles Schwab by 7.5% during the 1st quarter. Brighton Jones LLC now owns 3,807 shares of the financial services provider’s stock valued at $321,000 after buying an additional 267 shares during the period. Finally, Covestor Ltd raised its holdings in Charles Schwab by 16.6% during the 1st quarter. Covestor Ltd now owns 1,239 shares of the financial services provider’s stock valued at $104,000 after buying an additional 176 shares during the period. 73.49% of the stock is currently owned by institutional investors.

Insider Activity at Charles Schwab

In related news, CEO Walter W. Bettinger acquired 50,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 14th. The stock was bought at an average cost of $59.31 per share, for a total transaction of $2,965,500.00. Following the purchase, the chief executive officer now owns 656,501 shares in the company, valued at approximately $38,937,074.31. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other Charles Schwab news, Director Todd M. Ricketts purchased 10,000 shares of the company’s stock in a transaction on Tuesday, March 14th. The stock was acquired at an average cost of $56.79 per share, for a total transaction of $567,900.00. Following the purchase, the director now directly owns 230,892 shares of the company’s stock, valued at approximately $13,112,356.68. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Walter W. Bettinger purchased 50,000 shares of the company’s stock in a transaction on Tuesday, March 14th. The stock was acquired at an average price of $59.31 per share, with a total value of $2,965,500.00. Following the completion of the purchase, the chief executive officer now directly owns 656,501 shares in the company, valued at $38,937,074.31. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 81,000 shares of company stock worth $4,706,960. 6.60% of the stock is owned by company insiders.

Charles Schwab Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 26th. Investors of record on Friday, May 12th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, May 11th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.84%. Charles Schwab’s dividend payout ratio (DPR) is presently 27.32%.

About Charles Schwab

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The Charles Schwab Corp. is a savings and loan holding company, which engages in the provision of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. It operates through the Investor Services and Advisor Services segments. The Investor Services segment includes retail brokerage and banking services to individual investors, and retirement plan services, as well as other corporate brokerage services, to businesses and their employees.