Charles Schwab (SCHW) Raised to “Buy” at Deutsche Bank

Charles Schwab (NYSE:SCHW) was upgraded by analysts at Deutsche Bank from a “hold” rating to a “buy” rating in a report released on Tuesday, The Fly reports. The firm presently has a $54.00 target price on the financial services provider’s stock, up from their previous target price of $52.00. Deutsche Bank’s price target points to a potential upside of 16.78% from the stock’s previous close.

SCHW has been the subject of several other research reports. Morgan Stanley lifted their price target on Charles Schwab from $65.00 to $66.00 and gave the stock a “buy” rating in a research note on Tuesday, October 9th. JPMorgan Chase & Co. set a $59.00 target price on shares of Charles Schwab and gave the company a “buy” rating in a research note on Monday, July 16th. Barclays cut their target price on shares of Charles Schwab from $65.00 to $57.00 and set an “overweight” rating for the company in a research note on Monday, October 22nd. Citigroup cut their target price on shares of Charles Schwab from $49.00 to $48.00 and set a “sell” rating for the company in a research note on Monday, July 23rd. Finally, Zacks Investment Research downgraded shares of Charles Schwab from a “buy” rating to a “hold” rating in a research note on Wednesday, July 11th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and ten have issued a buy rating to the company’s stock. Charles Schwab presently has an average rating of “Hold” and an average price target of $57.73.

NYSE:SCHW opened at $46.24 on Tuesday. The firm has a market cap of $61.57 billion, a PE ratio of 20.34, a PEG ratio of 1.13 and a beta of 1.55. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.27 and a quick ratio of 0.27. Charles Schwab has a 52-week low of $42.01 and a 52-week high of $60.22.

Charles Schwab (NYSE:SCHW) last released its quarterly earnings results on Monday, October 15th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.65. The business had revenue of $2.58 billion during the quarter, compared to the consensus estimate of $2.58 billion. Charles Schwab had a return on equity of 19.46% and a net margin of 32.65%. The business’s revenue was up 19.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.42 EPS. On average, analysts expect that Charles Schwab will post 2.45 EPS for the current fiscal year.

Charles Schwab declared that its Board of Directors has authorized a stock repurchase plan on Thursday, October 25th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 1.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its stock is undervalued.

In other Charles Schwab news, insider Marie A. Chandoha sold 8,424 shares of Charles Schwab stock in a transaction dated Tuesday, October 16th. The stock was sold at an average price of $48.01, for a total value of $404,436.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Christopher V. Dodds sold 15,718 shares of Charles Schwab stock in a transaction dated Thursday, August 16th. The shares were sold at an average price of $51.14, for a total value of $803,818.52. Following the completion of the sale, the director now owns 7,592 shares of the company’s stock, valued at approximately $388,254.88. The disclosure for this sale can be found here. Insiders sold a total of 26,771 shares of company stock valued at $1,336,655 in the last three months. 11.50% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. Acropolis Investment Management LLC purchased a new stake in Charles Schwab in the 2nd quarter valued at about $115,000. LFA Lugano Financial Advisors SA purchased a new stake in Charles Schwab in the 3rd quarter valued at about $111,000. Point72 Hong Kong Ltd purchased a new stake in Charles Schwab in the 2nd quarter valued at about $134,000. Kaizen Advisory LLC grew its holdings in Charles Schwab by 157.6% in the 2nd quarter. Kaizen Advisory LLC now owns 2,980 shares of the financial services provider’s stock valued at $152,000 after buying an additional 1,823 shares during the period. Finally, Sun Life Financial INC grew its holdings in Charles Schwab by 1,041.8% in the 2nd quarter. Sun Life Financial INC now owns 3,254 shares of the financial services provider’s stock valued at $166,000 after buying an additional 2,969 shares during the period. Institutional investors own 80.46% of the company’s stock.

Charles Schwab Company Profile

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.

Further Reading: Stock Symbols and CUSIP Explained

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Analyst Recommendations for Charles Schwab (NYSE:SCHW)

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