Charles Schwab Co. (NYSE:SCHW) – Equities research analysts at Jefferies Financial Group lifted their Q4 2018 earnings per share (EPS) estimates for Charles Schwab in a note issued to investors on Tuesday, January 8th. Jefferies Financial Group analyst D. Fannon now anticipates that the financial services provider will post earnings of $0.65 per share for the quarter, up from their previous forecast of $0.64. Jefferies Financial Group also issued estimates for Charles Schwab’s Q1 2019 earnings at $0.64 EPS, Q2 2019 earnings at $0.67 EPS, Q3 2019 earnings at $0.71 EPS, Q4 2019 earnings at $0.72 EPS, FY2019 earnings at $2.74 EPS and FY2020 earnings at $2.98 EPS.
Other equities research analysts have also issued reports about the company. Morgan Stanley set a $70.00 price target on Charles Schwab and gave the company a “buy” rating in a research report on Tuesday, September 18th. Wolfe Research assumed coverage on Charles Schwab in a research report on Tuesday, September 25th. They issued an “underperform” rating for the company. Zacks Investment Research raised Charles Schwab from a “hold” rating to a “buy” rating and set a $55.00 price target for the company in a research report on Wednesday, October 3rd. Barclays lowered their price target on Charles Schwab from $65.00 to $57.00 and set an “overweight” rating for the company in a research report on Monday, October 22nd. Finally, Credit Suisse Group lowered their price target on Charles Schwab from $56.00 to $53.00 and set an “outperform” rating for the company in a research report on Friday, October 26th. Nine research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. Charles Schwab currently has a consensus rating of “Buy” and a consensus target price of $54.87.
Charles Schwab (NYSE:SCHW) last issued its earnings results on Monday, October 15th. The financial services provider reported $0.65 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.65. Charles Schwab had a return on equity of 19.02% and a net margin of 32.65%. The company had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.58 billion. During the same period in the prior year, the firm earned $0.42 earnings per share. Charles Schwab’s revenue for the quarter was up 19.1% on a year-over-year basis.
Charles Schwab announced that its Board of Directors has initiated a stock repurchase plan on Thursday, October 25th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the financial services provider to purchase up to 1.7% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its stock is undervalued.
In other news, EVP Jonathan M. Craig sold 2,629 shares of the firm’s stock in a transaction on Monday, October 15th. The stock was sold at an average price of $48.84, for a total transaction of $128,400.36. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Walter W. Bettinger bought 124,669 shares of the firm’s stock in a transaction dated Wednesday, December 26th. The shares were acquired at an average cost of $38.81 per share, with a total value of $4,838,403.89. Following the completion of the transaction, the insider now owns 335,093 shares in the company, valued at $13,004,959.33. The disclosure for this purchase can be found here. Insiders sold a total of 411,366 shares of company stock valued at $19,333,819 over the last three months. 11.50% of the stock is currently owned by insiders.
Institutional investors have recently made changes to their positions in the company. LFA Lugano Financial Advisors SA purchased a new stake in shares of Charles Schwab during the 3rd quarter valued at $111,000. Sapphire Star Partners LP purchased a new stake in shares of Charles Schwab during the 3rd quarter valued at $123,000. Point72 Hong Kong Ltd purchased a new stake in shares of Charles Schwab during the 2nd quarter valued at $134,000. Zions Bancorporation purchased a new stake in shares of Charles Schwab during the 3rd quarter valued at $136,000. Finally, Lourd Capital LLC purchased a new stake in shares of Charles Schwab during the 3rd quarter valued at $201,000. 79.52% of the stock is owned by hedge funds and other institutional investors.
Charles Schwab Company Profile
The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.
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