William Blair Predicts Stronger Earnings for Charles Schwab

The Charles Schwab Co. (NYSE:SCHW) – Equities researchers at William Blair lifted their FY2025 earnings per share estimates for shares of Charles Schwab in a research note issued to investors on Wednesday, January 22nd. William Blair analyst J. Schmitt now anticipates that the financial services provider will post earnings per share of $4.15 for the year, up from their previous estimate of $3.90. The consensus estimate for Charles Schwab’s current full-year earnings is $4.04 per share. William Blair also issued estimates for Charles Schwab’s FY2026 earnings at $5.10 EPS.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings data on Tuesday, January 21st. The financial services provider reported $1.01 EPS for the quarter, beating 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 $5,190,822.51 billion. Charles Schwab had a net margin of 30.31% and a return on equity of 18.20%. The firm’s revenue was up 19.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.68 EPS.

SCHW has been the topic of several other research reports. Barclays raised their target price on shares of Charles Schwab from $95.00 to $96.00 and gave the company an “overweight” rating in a research note on Wednesday. Bank of America cut their price objective on Charles Schwab from $63.00 to $61.00 and set an “underperform” rating for the company in a report on Wednesday, October 16th. Keefe, Bruyette & Woods upped their price target on shares of Charles Schwab from $81.00 to $93.00 and gave the company an “outperform” rating in a report on Friday, December 20th. Morgan Stanley raised their target price on shares of Charles Schwab from $74.00 to $84.00 and gave the stock an “equal weight” rating in a report on Friday, January 17th. Finally, Wells Fargo & Company upgraded Charles Schwab from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $89.00 to $93.00 in a report on Wednesday. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $83.83.

Charles Schwab Price Performance

NYSE SCHW opened at $80.44 on Thursday. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 0.59. Charles Schwab has a 52 week low of $61.01 and a 52 week high of $83.35. The company has a 50-day moving average price of $77.75 and a two-hundred day moving average price of $70.75. The stock has a market cap of $143.15 billion, a price-to-earnings ratio of 26.90, a price-to-earnings-growth ratio of 1.48 and a beta of 0.99.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SCHW. Merit Financial Group LLC increased its position in shares of Charles Schwab by 230.1% during the fourth quarter. Merit Financial Group LLC now owns 33,546 shares of the financial services provider’s stock worth $2,483,000 after acquiring an additional 23,383 shares during the last quarter. Benjamin Edwards Inc. boosted its holdings in shares of Charles Schwab by 2,840.7% during the third quarter. Benjamin Edwards Inc. now owns 6,146 shares of the financial services provider’s stock valued at $398,000 after acquiring an additional 5,937 shares during the period. Synovus Financial Corp grew its holdings in Charles Schwab by 46.0% in the 3rd quarter. Synovus Financial Corp now owns 67,889 shares of the financial services provider’s stock worth $4,400,000 after buying an additional 21,377 shares in the last quarter. Patten & Patten Inc. TN raised its stake in shares of Charles Schwab by 155.9% during the third quarter. Patten & Patten Inc. TN now owns 104,168 shares of the financial services provider’s stock valued at $6,751,000 after purchasing an additional 63,463 shares in the last quarter. Finally, Equity Investment Corp boosted its holdings in shares of Charles Schwab by 9.4% in the third quarter. Equity Investment Corp now owns 1,640,157 shares of the financial services provider’s stock valued at $106,299,000 after acquiring an additional 140,643 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company’s stock.

Insider Activity at Charles Schwab

In other Charles Schwab news, Director Christopher V. Dodds sold 9,284 shares of the firm’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $81.43, for a total value of $755,996.12. Following the completion of the sale, the director now owns 442,807 shares of the company’s stock, valued at approximately $36,057,774.01. This trade represents a 2.05 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Jonathan S. Beatty sold 2,300 shares of the firm’s stock in a transaction that occurred on Monday, November 25th. The stock was sold at an average price of $82.01, for a total transaction of $188,623.00. Following the transaction, the insider now directly owns 18,069 shares of the company’s stock, valued at approximately $1,481,838.69. This trade represents a 11.29 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 26,823 shares of company stock worth $2,171,194 in the last three months. Company insiders own 6.60% of the company’s stock.

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.