William Blair Weighs in on The Charles Schwab Co.’s Q3 2023 Earnings (NYSE:SCHW)

The Charles Schwab Co. (NYSE:SCHW – Get Rating) – Equities researchers at William Blair dropped their Q3 2023 EPS estimates for Charles Schwab in a note issued to investors on Tuesday, May 23rd. William Blair analyst J. Schmitt now expects that the financial services provider will post earnings of $0.87 per share for the quarter, down from their prior forecast 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 announced its quarterly earnings results on Monday, April 17th. The financial services provider reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.90 by $0.03. Charles Schwab had a net margin of 34.82% and a return on equity of 27.83%. The firm had revenue of $5.12 billion for the quarter, compared to analysts’ expectations of $5.13 billion. During the same period in the previous year, the company posted $0.77 earnings per share. Charles Schwab’s revenue was up 9.5% compared to the same quarter last year.

A number of other research analysts also recently issued reports on SCHW. StockNews.com upgraded shares of Charles Schwab from a “sell” rating to a “hold” rating in a research report on Friday, May 19th. Bank of America reduced their price target on shares of Charles Schwab from $53.00 to $51.00 in a research report on Monday, April 17th. UBS Group reduced their price target on shares of Charles Schwab from $70.00 to $65.00 in a research report on Tuesday, April 18th. The Goldman Sachs Group reduced their price target on shares of Charles Schwab from $98.00 to $75.00 and set a “buy” rating on the stock in a research report on Tuesday, March 14th. Finally, Citigroup reduced their price target on shares of Charles Schwab from $75.00 to $65.00 and set a “buy” rating on the stock in a research report on Wednesday, March 29th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and twelve have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $68.73.

Charles Schwab Trading Down 1.3 %

NYSE SCHW opened at $52.08 on Wednesday. Charles Schwab has a 12 month low of $45.00 and a 12 month high of $86.63. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.39 and a quick ratio of 0.39. The company has a market capitalization of $92.14 billion, a price-to-earnings ratio of 14.23, a price-to-earnings-growth ratio of 2.67 and a beta of 0.88. The company’s fifty day moving average price is $51.92 and its two-hundred day moving average price is $69.41.

Charles Schwab Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 26th. Stockholders of record on Friday, May 12th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, May 11th. This represents a $1.00 annualized dividend and a dividend yield of 1.92%. Charles Schwab’s dividend payout ratio (DPR) is 27.32%.

Insider Activity

In other Charles Schwab news, President Richard A. Wurster acquired 2,000 shares of Charles Schwab stock in a transaction dated Friday, March 17th. The stock was bought at an average price of $54.39 per share, for a total transaction of $108,780.00. Following the transaction, the president now owns 101,391 shares in the company, valued at approximately $5,514,656.49. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. In other news, President Richard A. Wurster bought 2,000 shares of the firm’s stock in a transaction on Friday, March 17th. The stock was bought at an average cost of $54.39 per share, for a total transaction of $108,780.00. Following the completion of the acquisition, the president now directly owns 101,391 shares in the company, valued at approximately $5,514,656.49. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, Director Mark A. Goldfarb bought 4,000 shares of the firm’s stock in a transaction on Thursday, March 16th. The stock was purchased at an average price of $58.37 per share, with a total value of $233,480.00. Following the completion of the acquisition, the director now owns 27,017 shares of the company’s stock, valued at $1,576,982.29. The disclosure for this purchase can be found here. In the last quarter, insiders acquired 81,000 shares of company stock worth $4,706,960 and sold 123,103 shares worth $7,530,942. Insiders own 6.60% of the company’s stock.

Institutional Trading of Charles Schwab

Several institutional investors have recently made changes to their positions in the stock. Toronto Dominion Bank raised its position in shares of Charles Schwab by 32,224.4% in the fourth quarter. Toronto Dominion Bank now owns 225,994,826 shares of the financial services provider’s stock valued at $18,816,289,000 after purchasing an additional 225,295,680 shares during the period. Vanguard Group Inc. raised its position in shares of Charles Schwab by 2.1% in the third quarter. Vanguard Group Inc. now owns 124,437,061 shares of the financial services provider’s stock valued at $8,943,291,000 after purchasing an additional 2,589,952 shares during the period. Dodge & Cox raised its position in shares of Charles Schwab by 1.3% in the first quarter. Dodge & Cox now owns 78,462,490 shares of the financial services provider’s stock valued at $4,109,865,000 after purchasing an additional 1,033,760 shares during the period. State Street Corp raised its position in shares of Charles Schwab by 1.1% in the third quarter. State Street Corp now owns 65,566,364 shares of the financial services provider’s stock valued at $4,712,255,000 after purchasing an additional 717,683 shares during the period. Finally, Price T Rowe Associates Inc. MD raised its position in shares of Charles Schwab by 5.0% in the first quarter. Price T Rowe Associates Inc. MD now owns 41,880,424 shares of the financial services provider’s stock valued at $2,193,697,000 after purchasing an additional 2,000,383 shares during the period. 73.49% of the stock is currently owned by institutional investors and hedge funds.

Charles Schwab Company Profile

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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.