Truist Financial Maintains Buy Rating for Charles Schwab

Truist Financial has reaffirmed its "buy" rating on Charles Schwab (NYSE:SCHW) in a research note released on Wednesday. The firm has increased its price target for the stock to $90.00, up from a previous target of $86.00. This new target indicates a potential upside of 12% from the stock's current price.

Several analysts have recently weighed in on Charles Schwab's performance. Wells Fargo & Company upgraded the brokerage firm from an "equal weight" rating to an "overweight" rating and raised their price target from $89.00 to $93.00 in a report published on the same day. Cowen also adjusted their price target for Schwab from $69.00 to $75.00 while maintaining a "hold" rating. Meanwhile, Raymond James reduced their target price for the stock from $76.00 to $73.00.

In addition, Deutsche Bank Aktiengesellschaft raised its target price for Schwab from $98.00 to $105.00 and assigned a "buy" rating for the stock. On the downside, Bank of America lowered its target price from $63.00 to $61.00, issuing an "underperform" rating for the company. Overall, analysts' ratings for Schwab are mixed, with two analysts recommending a sell, seven suggesting a hold, and nine issuing a buy rating according to MarketBeat. The consensus rating stands at "Hold" with an average target price of approximately $83.83.

Charles Schwab's Stock Performance

On Wednesday, shares of Charles Schwab fell by $0.58, closing at $80.36, with trading volume at 2,823,112 shares compared to the average of 9,078,963. Currently, Schwab's stock has a 50-day moving average of $77.71 and a two-hundred day moving average of $70.68. The firm boasts a market capitalization of around $143 billion and a price-to-earnings (P/E) ratio of 31.39. Its one-year low and high range between $61.01 and $83.35, respectively.

In terms of financial performance, the last earnings report by Charles Schwab was released on January 21st, where they reported earnings of $1.01 per share, exceeding consensus estimates of $0.90. The quarterly revenue was approximately $5.33 billion, surpassing predictions of around $5.19 billion, marking a 19.5% increase compared to the prior year. Analysts generally expect the company to report an earnings per share (EPS) of 3.16 for the current fiscal year.

Recent Insider Transactions

Recent insider transactions reveal activity within the company. Jonathan S. Beatty, an insider, sold 2,500 shares on November 11th at an average price of $77.02, affecting his position by a decrease of 12.15%. Director Christopher V. Dodds also sold 9,284 shares on November 18th at an average price of $81.43, resulting in a 2.05% reduction in his stake. Within the last 90 days, insiders have offloaded a total of 26,823 shares worth $2,171,194, with current insider ownership at about 6.60% of total shares.

Institutional Investor Activity

In terms of institutional investments, several major shareholders have recently adjusted their holdings in Schwab. Washington Trust Advisors Inc. increased their position by 62.6% in the third quarter, now holding 387 shares worth approximately $25,000. Additional new stakes were acquired by Capital Performance Advisors LLP and Prospera Private Wealth LLC, among others, in similar timeframes. Currently, institutional investors own about 84.38% of the company's stock.

Company Overview

The Charles Schwab Corporation, alongside its subsidiaries, operates as a holding company providing a range of services, including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services, both domestically and abroad. The company functions under two main segments: Investor Services and Advisor Services.

buy, rating, target