Charles Schwab Reaches 52-Week High Following Analyst Upgrade

Shares of The Charles Schwab Co. (NYSE:SCHW) achieved a new 52-week high during trading activities on Wednesday, as a result of an upgrade from Truist Financial. The investment firm raised its price target for Schwab from $90.00 to $91.00 while maintaining a buy rating for the stock. During the trading session, shares were seen reaching a maximum price of $84.50 before settling at $83.51, with a significant trading volume of 59,325,916 shares. This increase was notable when compared to the previous closing price of $81.17.

In addition to Truist Financial's update, other analysts have also made adjustments to their views on Charles Schwab. Citigroup, for example, increased its price objective for the stock from $80.00 to $85.00, issuing a “neutral” rating on January 22nd. Meanwhile, The Goldman Sachs Group raised its target from $67.00 to $74.00 on October 16th, also assigning a “neutral” rating. Morgan Stanley, on February 6th, increased its price objective from $84.00 to $91.00 with an “equal weight” rating. Additionally, Barclays revised their target price from $95.00 to $96.00, providing an “overweight” rating on January 22nd. JPMorgan Chase & Co. updated their target from $87.00 to $93.00, also maintaining an “overweight” rating on January 7th. As a result of these evaluations, the stock currently has two sell ratings, seven hold ratings, and nine buy ratings, culminating in a consensus rating of “Hold” and an average price target of $84.56, according to data from MarketBeat.com.

Insider Trading Activity

In other news concerning Charles Schwab, Director Arun Sarin executed a sale of 8,548 shares on January 23rd, which was handled at an average price of $81.82, totaling approximately $699,397.36. After this transaction, Sarin's ownership in the company decreased by 31.47%, leaving him with 18,617 shares worth about $1,523,242.94. This transaction was formally disclosed in SEC filings. Furthermore, Director Christopher V. Dodds sold 9,284 shares on November 18th at an average price of $81.43, amounting to roughly $755,996.12. After selling these shares, Dodds continues to own 442,807 shares valued at approximately $36,057,774.01, representing a 2.05% reduction in his stock ownership. Over the past 90 days, insiders have sold a total of 47,514 shares valued at approximately $3,859,731, with insiders owning about 6.60% of Schwab’s total stock.

Hedge Fund Activity

Several hedge funds have also adjusted their positions recently concerning Charles Schwab. Washington Trust Advisors Inc. expanded its holdings by 62.6% in the third quarter, now owning 387 shares valued at $25,000 after acquiring an additional 149 shares. Capital Performance Advisors LLP picked up new shares in Schwab, estimating its stake at approximately $25,000. Moreover, Prospera Private Wealth LLC and Hazlett Burt & Watson Inc. made new investments in the company, valued at about $31,000 and $33,000 respectively during the same quarter. Overall, institutional investors and hedge funds now account for approximately 84.38% of Charles Schwab’s total stock ownership.

Stock Performance and Financials

Charles Schwab’s stock has seen a rise of 2.9%. The company holds a debt-to-equity ratio of 0.59, alongside a quick and current ratio of 0.47 each. The stock is trading around a fifty-day simple moving average of $77.99 and a 200-day average of $71.99. Overall, the company's market capitalization stands at $148.61 billion, with a price-to-earnings ratio of 27.93, a PEG ratio of 1.02, and a beta of 0.99.

On January 21st, Charles Schwab released its quarterly earnings, reporting earnings per share (EPS) of $1.01, surpassing analysts' expectations of $0.90 by $0.11. The reported revenue was $5.33 billion, exceeding analyst predictions of $5.19 billion and marking a 19.5% increase compared to the same quarter last year. The company's EPS from the previous year was $0.68. Analysts expect Charles Schwab to post an EPS of 4.18 for the current fiscal year.

Dividend Increase Announcement

Additionally, Charles Schwab recently announced a quarterly dividend that is set to be paid on February 28th. Shareholders on record by February 14th will receive a dividend of $0.27 per share, which is an enhancement from the previous quarterly payment of $0.25. The ex-dividend date has also been scheduled for February 14th. This new dividend translates to an annualized payment of $1.08, corresponding to a dividend yield of 1.29%. Currently, the company maintains a dividend payout ratio of 33.44%.

Corporate Overview

The Charles Schwab Corporation, along with its subsidiaries, acts as a savings and loan holding company offering a variety of financial services, including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services both in the U.S. and internationally. The company operates in two main segments: Investor Services and Advisor Services.

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