Why should you buy stock in The Charles Schwab Corporation (SCHW)?

The Charles Schwab Corporation (NYSE: SCHW) is -25.29% lower on its value in year-to-date trading and has touched a low of $28.00 and a high of $51.65 in the current 52-week trading range. The SCHW stock was last observed hovering at around $36.28 in the last trading session, with the day’s loss setting it -0.75% off its average median price target of $37.00 for the next 12 months. It is also 24.4% off the consensus price target high of $47.00 offered by 18 analysts, but current levels are -1.51% lower than the price target low of $35.00 for the same period.

Currently trading at $35.53, the stock is 2.29% and 3.12% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 8.33 million and changing -2.07% at the moment leaves the stock -9.96% off its SMA200. SCHW registered -7.16% loss for a year compared to 6-month loss of -7.23%. The firm has a 50-day simple moving average (SMA 50) of $34.57 and a 200-day simple moving average (SMA200) of $35.72.

The stock witnessed a 7.18% gain in the last 1 month and extending the period to 3 months gives it a -4.33%, and is 1.17% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 2.17% over the week and 2.58% over the month.

The Charles Schwab Corporation (SCHW) has around 21800 employees, a market worth around $45.53B and $11.05B in sales. Current P/E ratio is 14.92 and Fwd P/E is 18.89. Profit margin for the company is 28.00%. Distance from 52-week low is 26.89% and -31.20% from its 52-week high. The company has generated returns on investments over the last 12 months (1.50%).

The Charles Schwab Corporation (SCHW) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for The Charles Schwab Corporation (SCHW) is a “Overweight”. 18 analysts offering their recommendations for the stock have an average rating of 2.50, where 11 rate it as a Hold and 1 think it is a “Overweight”. 6 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

The Charles Schwab Corporation is expected to release its quarterly report on 10/19/2020 and quarterly earnings per share for the current quarter are estimated at $0.51 with sales reaching $2.51B over the same period.The EPS is expected to grow by 9.20% this year, but quarterly earnings will post -6.00% year-over-year. Quarterly sales are estimated to shrink -7.30% in year-over-year returns.

The Charles Schwab Corporation (SCHW) Top Institutional Holders

1,492 institutions hold shares in The Charles Schwab Corporation (SCHW), with 134.69M shares held by insiders accounting for 10.45% while institutional investors hold 94.24% of the company’s shares. The shares outstanding are 1.29B, and float is at 1.15B with Short Float at 6.66%. Institutions hold 84.39% of the Float.

The top institutional shareholder in the company is Dodge & Cox Inc with over 95.76 million shares valued at $3.23 billion. The investor’s holdings represent 7.43% of the SCHW Shares outstanding. As of Jun 29, 2020, the second largest holder is Blackrock Inc. with 92.57 million shares valued at $3.12 billion to account for 7.18% of the shares outstanding. The other top investors are Vanguard Group, Inc. (The) which holds 89.62 million shares representing 6.95% and valued at over $3.02 billion, while State Street Corporation holds 3.67% of the shares totaling 47.24 million with a market value of $1.59 billion.

The Charles Schwab Corporation (SCHW) Insider Activity

A total of 41 insider transactions have happened at The Charles Schwab Corporation (SCHW) in the last six months, with sales accounting for 13 and purchases happening 28 times. The most recent transaction is an insider sale by SCHWAB CHARLES R, the company’s Chairman. SEC filings show that SCHWAB CHARLES R sold 200,000 shares of the company’s common stock on Aug 05 at a price of $34.11 per share for a total of $6.82 million. Following the sale, the insider now owns 32.41 million shares.

The Charles Schwab Corporation disclosed in a document filed with the SEC on Jul 31 that SCHWAB CHARLES R (Chairman) sold a total of 65,056 shares of the company’s common stock. The trade occurred on Jul 31 and was made at $33.23 per share for $2.16 million. Following the transaction, the insider now directly holds 75.19 million shares of the SCHW stock.

Still, SEC filings show that on Jul 30, SCHWAB CHARLES R (Chairman) disposed off 65,056 shares at an average price of $33.19 for $2.16 million. The insider now directly holds 75,185,798 shares of The Charles Schwab Corporation (SCHW).

The Charles Schwab Corporation (SCHW): Who are the competitors?

The company’s main competitors (and peers) include Bank of America Corporation (BAC) that is trading -6.43% down over the past 12 months. LPL Financial Holdings Inc. (LPLA) is 9.62% up on the 1-year trading charts. Short interest in the company’s stock has fallen -3.49% from the last report on Jul 14, 2020 to stand at a total of 79.52 million short shares sold with a short interest ratio of 8.52.