Charles Schwab (NYSE:SCHW) Reaches New 1-Year High After Dividend News

Shares of The Charles Schwab Company (NYSE:SCHW) achieved a new 52-week high on Thursday, boosted by the announcement of a new dividend. During the trading day, the stock price peaked at $83.84 before closing at $83.52, with a total trading volume of 4,012,060 shares. The previous close was marked at $82.06.

The company declared a dividend to be paid on Friday, February 28th. Shareholders on record by Friday, February 14th will receive a dividend of $0.27 per share, a rise from the former quarterly dividend of $0.25. The ex-dividend date falls on Friday, February 14th. This increase brings the annualized dividend to $1.08, reflecting a yield of 1.31%. The dividend payout ratio for Charles Schwab stands at 33.44%.

Recent Analyst Ratings

In recent days, several analysts have expressed their views on SCHW. Wells Fargo & Company upgraded Charles Schwab from an "equal weight" rating to an "overweight" rating, raising their target price from $89.00 to $93.00, as detailed in a report published on January 22nd. StockNews.com changed their rating from a "sell" to a "hold" on October 16th. On the same date, the Goldman Sachs Group updated their target price from $67.00 to $74.00, maintaining a "neutral" rating. JMP Securities reissued a "market outperform" rating, boosting their target price to $94.00 from $84.00 on December 9th. Morgan Stanley also increased their target price from $74.00 to $84.00 with an "equal weight" rating, noted in a report on January 17th. Overall, two analysts have issued a sell rating, seven suggested a hold, and nine recommended buying the stock. According to MarketBeat.com, the average analyst rating on the stock is "Hold" with an average target price of $84.11.

Charles Schwab's Financial Metrics

The company holds a debt-to-equity ratio of 0.59, a current ratio of 0.47, and a quick ratio also at 0.47. Its market capitalization is $147.22 billion, with a price-to-earnings (P/E) ratio of 27.67 and a price-to-earnings-growth (PEG) ratio of 1.00. The stock’s 50-day simple moving average is noted at $77.94, while the 200-day simple moving average stands at $71.08.

Charles Schwab last reported its quarterly earnings on January 21st, revealing an earnings per share (EPS) of $1.01 for the quarter, surpassing analyst expectations of $0.90 by $0.11. The company reported a return on equity of 18.20% and a net margin of 30.31%. Revenue for the quarter was recorded at $5.33 billion, exceeding the consensus estimate of $5.19 billion. This revenue marks a 19.5% increase compared to the same period last year. Analysts expect that Charles Schwab will report an EPS of 4.18 for the current fiscal year.

Insider Transactions

Recent trading activity by insiders included a sale by Jonathan S. Beatty, who sold 2,500 shares at an average price of $77.02 on November 11th, totaling $192,550. Following this sale, Beatty’s stake decreased by 12.15%, leaving him with 18,069 shares valued at approximately $1,391,674. Insider Arun Sarin also sold 8,548 shares on January 23rd at an average price of $81.82, totaling about $699,397.36 and reflecting a 31.47% decrease in his ownership. Over the last three months, insiders disposed of 50,014 shares valued at approximately $4,052,281. Presently, corporate insiders control about 6.60% of the company's shares.

Institutional Investments

Large institutional investors have actively adjusted their positions in the company. Franklin Resources Inc. raised its stake in Charles Schwab by 15.0% during the third quarter, increasing their holdings to over 24 million shares valued at approximately $1.64 billion after acquiring 3,157,923 new shares. Massachusetts Financial Services Co. MA increased its holdings by 6.3%, now owning nearly 29 million shares valued at around $1.86 billion after purchasing an additional 1,711,312 shares. AustralianSuper Pty Ltd displayed a remarkable increase of 2,617.6% in the same quarter, now holding 1,707,771 shares worth $110.68 million. KBC Group NV also significantly increased their ownership by 186.7%, now possessing over 2 million shares valued at $158.24 million after acquiring 1,392,255 shares. Hedge funds and institutional investors collectively hold about 84.38% of the company’s stock.

About Charles Schwab Corporation

The Charles Schwab Corporation, together with its subsidiaries, functions as a savings and loan holding company. It provides a range of services, including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services across the United States and internationally. The company operates primarily in two segments: Investor Services and Advisor Services.

Additional Insights

• Market perceptions of Charles Schwab
• Understanding insider trading trends
• Assessment of Schwab’s earnings performance
• Significant institutional movements in the stock
• Opportunities in wealth management sector

Charles, Schwab, Dividend