Charles Schwab (SCHW) Lifted to “Strong-Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Charles Schwab (NYSE:SCHW) from a hold rating to a strong-buy rating in a research report sent to investors on Friday. The brokerage currently has $60.00 price target on the financial services provider’s stock.

According to Zacks, “Schwab’s shares have outperformed the industry in the past six months. The performance was supported by impressive earnings surprise history, as the company did not lag the Zacks Consensus Estimate in any of the trailing four quarters. The company remains well positioned to gain from the rising rate environment. Also, initiatives to strengthen trading income are likely to support its profitability in the long run despite the near-term reduction in the same. While continuous rise in expenses (due to rise in compensation costs) remains a key concern for the company, the benefits from tax act will aid financials.”

Other equities analysts also recently issued research reports about the company. SunTrust Banks upped their target price on Charles Schwab to $56.00 and gave the company an average rating in a research report on Friday, December 15th. They noted that the move was a valuation call. Keefe, Bruyette & Woods reiterated a buy rating and issued a $47.00 price target on shares of Charles Schwab in a research note on Friday, September 15th. Jefferies Group reiterated a buy rating and issued a $49.00 price target on shares of Charles Schwab in a research note on Friday, September 15th. BidaskClub upgraded Charles Schwab from a hold rating to a buy rating in a research note on Tuesday, September 26th. Finally, Deutsche Bank boosted their price target on Charles Schwab from $46.00 to $47.00 and gave the company a hold rating in a research note on Wednesday, October 25th. Six investment analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of Buy and an average target price of $51.25.

Charles Schwab (NYSE:SCHW) traded up $0.23 during trading on Friday, hitting $52.24. The stock had a trading volume of 4,803,600 shares, compared to its average volume of 5,710,700. Charles Schwab has a 52 week low of $37.16 and a 52 week high of $52.52. The company has a quick ratio of 0.30, a current ratio of 0.31 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $71,600.00, a P/E ratio of 33.49, a price-to-earnings-growth ratio of 1.30 and a beta of 1.75.

Charles Schwab (NYSE:SCHW) last posted its earnings results on Wednesday, October 18th. The financial services provider reported $0.42 EPS for the quarter, beating the consensus estimate of $0.41 by $0.01. Charles Schwab had a return on equity of 15.77% and a net margin of 27.30%. The company had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same quarter in the prior year, the business earned $0.35 earnings per share. The firm’s revenue for the quarter was up 13.1% on a year-over-year basis. sell-side analysts predict that Charles Schwab will post 1.61 EPS for the current year.

In other Charles Schwab news, EVP Bernard J. Clark sold 50,444 shares of the company’s stock in a transaction on Monday, December 4th. The stock was sold at an average price of $50.52, for a total transaction of $2,548,430.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Charles R. Schwab sold 225,000 shares of the company’s stock in a transaction on Tuesday, October 24th. The stock was sold at an average price of $44.89, for a total value of $10,100,250.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,658,531 shares of company stock valued at $77,397,901. 12.00% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Beach Investment Management LLC. acquired a new position in shares of Charles Schwab during the second quarter worth $250,000. Oppenheimer & Co. Inc. increased its holdings in shares of Charles Schwab by 3.2% during the second quarter. Oppenheimer & Co. Inc. now owns 7,370 shares of the financial services provider’s stock worth $316,000 after buying an additional 226 shares in the last quarter. Fiduciary Trust Co. acquired a new position in shares of Charles Schwab during the second quarter worth $163,000. Schroder Investment Management Group increased its holdings in shares of Charles Schwab by 24.4% during the second quarter. Schroder Investment Management Group now owns 116,321 shares of the financial services provider’s stock worth $5,003,000 after buying an additional 22,824 shares in the last quarter. Finally, Tredje AP fonden increased its holdings in shares of Charles Schwab by 0.8% during the second quarter. Tredje AP fonden now owns 106,638 shares of the financial services provider’s stock worth $4,581,000 after buying an additional 866 shares in the last quarter. Hedge funds and other institutional investors own 79.54% of the company’s stock.

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About Charles Schwab

The Charles Schwab Corporation (CSC) is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, money management and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services and Advisor Services.

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