Zacks Research Downgrades Charles Schwab (NYSE:SCHW) to Hold

Charles Schwab (NYSE:SCHW) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday, Zacks reports.

Several other analysts have also recently commented on the stock. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Charles Schwab in a research note on Wednesday, July 22nd. Wolfe Research reaffirmed an “outperform” rating and set a $127.00 price objective on shares of Charles Schwab in a report on Tuesday, July 21st. Weiss Ratings upgraded Charles Schwab from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, September 10th. Barclays lifted their target price on Charles Schwab from $122.00 to $125.00 and gave the company an “overweight” rating in a research note on Wednesday, July 22nd. Finally, Piper Sandler set a $118.00 target price on Charles Schwab in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $121.17.

Charles Schwab Stock Up 0.5%

Shares of NYSE:SCHW opened at $107.86 on Monday. Charles Schwab has a 12 month low of $83.96 and a 12 month high of $114.53. The company’s 50-day moving average price is $106.79 and its two-hundred day moving average price is $97.47. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52. The firm has a market cap of $186.52 billion, a P/E ratio of 19.61, a P/E/G ratio of 0.94 and a beta of 0.76.

Charles Schwab (NYSE:SCHW) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, topping analysts’ consensus estimates of $1.56 by $0.06. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The company had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. During the same period in the previous year, the firm posted $1.14 earnings per share. The company’s revenue was up 20.9% on a year-over-year basis. As a group, research analysts forecast that Charles Schwab will post 6.46 EPS for the current fiscal year.

Insiders Place Their Bets

In other Charles Schwab news, insider Dennis Howard sold 28,000 shares of Charles Schwab stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $105.01, for a total transaction of $2,940,280.00. Following the completion of the sale, the insider owned 10,470 shares of the company’s stock, valued at approximately $1,099,454.70. The trade was a 72.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula A. Sneed sold 5,263 shares of the company’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $107.15, for a total transaction of $563,930.45. Following the sale, the director owned 91,711 shares of the company’s stock, valued at $9,826,833.65. The trade was a 5.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 649,582 shares of company stock valued at $69,948,015 over the last three months. 6.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Charles Schwab

Institutional investors have recently made changes to their positions in the stock. Essex Financial Services Inc. grew its position in shares of Charles Schwab by 0.8% in the 4th quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider’s stock valued at $1,282,000 after purchasing an additional 105 shares during the period. Sheets Smith Wealth Management raised its holdings in Charles Schwab by 0.7% during the 1st quarter. Sheets Smith Wealth Management now owns 14,521 shares of the financial services provider’s stock worth $1,365,000 after buying an additional 108 shares during the period. Peoples Bank KS raised its holdings in Charles Schwab by 2.7% during the 2nd quarter. Peoples Bank KS now owns 4,331 shares of the financial services provider’s stock worth $400,000 after buying an additional 113 shares during the period. Sweeney & Michel LLC lifted its stake in Charles Schwab by 1.6% in the first quarter. Sweeney & Michel LLC now owns 7,333 shares of the financial services provider’s stock valued at $710,000 after buying an additional 115 shares in the last quarter. Finally, Crumly & Associates Inc. lifted its stake in Charles Schwab by 1.1% in the second quarter. Crumly & Associates Inc. now owns 10,479 shares of the financial services provider’s stock valued at $967,000 after buying an additional 115 shares in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Charles Schwab

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Record August asset gathering supports growth. Schwab reported $64.8 billion in net new assets during August, the strongest August on record. Core net new assets rose 12% month over month and 46% year over year, signaling continued customer acquisition and retention. Schwab Books a Record August With $64.8 Billion of Net New Assets
• Positive Sentiment: Margin balances surged. Client margin balances ended August at $177.6 billion, up 92% from a year earlier. Higher balances can support interest revenue, although they also increase exposure to market volatility and client leverage. August Margin Balance Report
• Positive Sentiment: Anthropic partnership expands Schwab’s advisor technology offering. Claude for Financial Advisors will be made available to more than 16,000 independent registered investment advisors, with tools for meeting preparation, financial planning, analytics and follow-ups. Integrations with CRM, custody, portfolio reporting and planning systems could improve advisor productivity and strengthen Schwab’s custody platform. Charles Schwab and Anthropic Bring Claude AI to Advisors
• Neutral Sentiment: AI benefits remain difficult to quantify. Analysts view Schwab as taking a more prominent role in AI-enabled wealth management, but some characterize the offering as generic or late to market. The partnership may support long-term competitiveness, though near-term revenue and earnings impact are not yet clear. Schwab Anthropic Partnership Analysis
• Neutral Sentiment: Valuation comparisons are mixed. A brokerage-stock comparison highlights Schwab’s earnings momentum, diversification and valuation against Robinhood, but does not introduce a new company-specific catalyst. Robinhood Versus Schwab Comparison
• Negative Sentiment: Potential legal and reputational risk persists. Schwab reportedly faces more than $1.3 million in exposure after an 82-year-old customer’s funds were sent to a cryptocurrency scam. The matter could create costs and draw attention to fraud-prevention controls, though its ultimate financial impact is uncertain. Schwab Customer Crypto Scam Report

About Charles Schwab

The Charles Schwab Corporation is a financial services company that provides investment, wealth management and banking services to individual investors, financial professionals, employers and institutions. Its offerings include brokerage accounts, retirement accounts, investment advisory services, mutual funds, exchange-traded funds, stocks, bonds and other securities.

Through Charles Schwab Bank and related platforms, the company also provides deposit accounts, lending and cash-management services.