Zacks Research Predicts Weaker Earnings for Charles Schwab

The Charles Schwab Co. (NYSE:SCHW - Free Report) - Equities research analysts at Zacks Research decreased their Q2 2025 earnings per share (EPS) estimates for shares of Charles Schwab in a note issued to investors on Tuesday, March 25th. Zacks Research analyst R. Department now expects that the financial services provider will earn $0.98 per share for the quarter, down from their previous forecast of $0.99. The consensus estimate for Charles Schwab's current full-year earnings is $4.22 per share. Zacks Research also issued estimates for Charles Schwab's Q4 2025 earnings at $1.13 EPS.

SCHW has been the topic of several other reports. UBS Group upped their price objective on shares of Charles Schwab from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Monday, January 27th. Morgan Stanley boosted their price objective on Charles Schwab from $84.00 to $91.00 and gave the stock an "equal weight" rating in a research note on Thursday, February 6th. Deutsche Bank Aktiengesellschaft lifted their price target on Charles Schwab from $98.00 to $105.00 and gave the company a "buy" rating in a report on Wednesday, January 22nd. Piper Sandler upped their target price on shares of Charles Schwab from $65.00 to $70.00 and gave the stock a "neutral" rating in a research report on Tuesday, January 7th. Finally, Jefferies Financial Group raised their price target on shares of Charles Schwab from $84.00 to $94.00 and gave the company a "buy" rating in a report on Monday, December 9th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating and ten have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $86.33.

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Charles Schwab Price Performance

Shares of NYSE SCHW traded up $0.57 during midday trading on Friday, reaching $78.38. 10,573,662 shares of the company traded hands, compared to its average volume of 11,352,938. The stock's 50-day simple moving average is $79.55 and its 200-day simple moving average is $75.45. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.47 and a current ratio of 0.47. Charles Schwab has a 12 month low of $61.01 and a 12 month high of $84.50. The firm has a market cap of $142.15 billion, a PE ratio of 26.21, a PEG ratio of 0.99 and a beta of 0.98.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings results on Tuesday, January 21st. The financial services provider reported $1.01 earnings per share for the quarter, topping analysts' consensus estimates of $0.90 by $0.11. The firm had revenue of $5.33 billion for the quarter, compared to the consensus estimate of $5.19 billion. Charles Schwab had a net margin of 30.31% and a return on equity of 18.20%. The business's revenue was up 19.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.68 earnings per share.

Charles Schwab Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 28th. Investors of record on Friday, February 14th were given a $0.27 dividend. The ex-dividend date was Friday, February 14th. This represents a $1.08 dividend on an annualized basis and a yield of 1.38%. This is an increase from Charles Schwab's previous quarterly dividend of $0.25. Charles Schwab's dividend payout ratio (DPR) is 36.12%.

Insider Buying and Selling at Charles Schwab

In other news, General Counsel Peter J. Morgan III sold 14,643 shares of the stock in a transaction dated Wednesday, January 22nd. The shares were sold at an average price of $80.70, for a total value of $1,181,690.10. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Arun Sarin sold 8,548 shares of Charles Schwab stock in a transaction dated Thursday, January 23rd. The stock was sold at an average price of $81.82, for a total transaction of $699,397.36. Following the sale, the director now directly owns 18,617 shares of the company's stock, valued at $1,523,242.94. The trade was a 31.47 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 509,701 shares of company stock worth $41,641,353. Insiders own 6.60% of the company's stock.

Institutional Investors Weigh In On Charles Schwab

Hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake in shares of Charles Schwab by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 128,578,230 shares of the financial services provider's stock valued at $9,516,075,000 after buying an additional 1,187,384 shares during the period. State Street Corp grew its holdings in shares of Charles Schwab by 0.7% during the 3rd quarter. State Street Corp now owns 62,076,447 shares of the financial services provider's stock worth $4,023,175,000 after purchasing an additional 414,949 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Charles Schwab by 2.5% in the fourth quarter. Geode Capital Management LLC now owns 30,901,484 shares of the financial services provider's stock worth $2,279,742,000 after purchasing an additional 760,043 shares during the period. Franklin Resources Inc. raised its stake in Charles Schwab by 15.0% in the third quarter. Franklin Resources Inc. now owns 24,261,234 shares of the financial services provider's stock valued at $1,644,674,000 after purchasing an additional 3,157,923 shares in the last quarter. Finally, Fisher Asset Management LLC lifted its position in Charles Schwab by 1.3% during the fourth quarter. Fisher Asset Management LLC now owns 20,455,266 shares of the financial services provider's stock worth $1,513,894,000 after purchasing an additional 265,708 shares during the period. 84.38% of the stock is currently owned by institutional investors and hedge funds.

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.