TD Cowen Upgrades Charles Schwab (NYSE:SCHW) to Buy

TD Cowen upgraded shares of Charles Schwab (NYSE:SCHW - Free Report) from a hold rating to a buy rating in a research note published on Tuesday morning, MarketBeat Ratings reports. The firm currently has $103.00 target price on the financial services provider's stock, up from their prior target price of $88.00.

A number of other brokerages have also recently issued reports on SCHW. Morgan Stanley raised their price objective on Charles Schwab from $84.00 to $91.00 and gave the company an "equal weight" rating in a research note on Thursday, February 6th. Truist Financial raised their price target on Charles Schwab from $90.00 to $91.00 and gave the stock a "buy" rating in a research report on Tuesday, February 11th. Jefferies Financial Group boosted their price objective on Charles Schwab from $84.00 to $94.00 and gave the company a "buy" rating in a research report on Monday, December 9th. Wells Fargo & Company upgraded shares of Charles Schwab from an "equal weight" rating to an "overweight" rating and raised their target price for the stock from $89.00 to $93.00 in a report on Wednesday, January 22nd. Finally, JPMorgan Chase & Co. upped their price target on shares of Charles Schwab from $87.00 to $93.00 and gave the company an "overweight" rating in a report on Tuesday, January 7th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and ten have issued a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $86.33.

Charles Schwab Price Performance

NYSE:SCHW traded down $1.33 during mid-day trading on Tuesday, reaching $80.50. The stock had a trading volume of 9,855,515 shares, compared to its average volume of 12,402,950. The stock has a market capitalization of $143.38 billion, a P/E ratio of 26.92, a P/E/G ratio of 0.99 and a beta of 0.99. The firm has a 50 day moving average price of $77.98 and a two-hundred day moving average price of $72.95. 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 one year low of $61.01 and a one year high of $84.50.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings data 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. Charles Schwab had a net margin of 30.31% and a return on equity of 18.20%. The firm had revenue of $5.33 billion during the quarter, compared to analyst estimates of $5.19 billion. During the same period in the previous year, the business posted $0.68 EPS. The business's quarterly revenue was up 19.5% on a year-over-year basis. As a group, analysts expect that Charles Schwab will post 4.22 earnings per share for the current year.

Charles Schwab Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, February 28th. Shareholders of record on Friday, February 14th will be issued a dividend of $0.27 per share. This is an increase from Charles Schwab's previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Friday, February 14th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.34%. Charles Schwab's dividend payout ratio is 36.12%.

Insider Activity

In related news, insider Jonathan S. Beatty sold 2,300 shares of Charles Schwab stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $82.01, for a total transaction of $188,623.00. Following the completion of the transaction, the insider now directly owns 18,069 shares of the company's stock, valued at $1,481,838.69. This trade represents a 11.29 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Chairman Walter W. Bettinger sold 464,629 shares of the company's stock in a transaction dated Wednesday, February 12th. The stock was sold at an average price of $81.91, for a total transaction of $38,057,761.39. Following the completion of the sale, the chairman now owns 827,377 shares in the company, valued at approximately $67,770,450.07. This trade represents a 35.96 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 490,120 shares of company stock worth $40,127,472 in the last quarter. 6.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Charles Schwab

Hedge funds have recently added to or reduced their stakes in the stock. Washington Trust Advisors Inc. raised its position in shares of Charles Schwab by 62.6% in the 3rd quarter. Washington Trust Advisors Inc. now owns 387 shares of the financial services provider's stock worth $25,000 after purchasing an additional 149 shares during the last quarter. Capital Performance Advisors LLP bought a new stake in Charles Schwab during the 3rd quarter valued at about $25,000. Prospera Private Wealth LLC purchased a new position in Charles Schwab in the third quarter worth about $31,000. Hazlett Burt & Watson Inc. bought a new position in shares of Charles Schwab in the third quarter worth approximately $33,000. Finally, Planning Capital Management Corp purchased a new stake in shares of Charles Schwab during the third quarter valued at approximately $33,000. 84.38% of the stock is owned by institutional investors.

Charles Schwab Company Profile

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.