Charles Schwab (SCHW) Lowered to “Sell” at ValuEngine

Charles Schwab (NYSE:SCHW) was downgraded by equities research analysts at ValuEngine from a “hold” rating to a “sell” rating in a research report issued on Friday.

Several other analysts have also weighed in on SCHW. Credit Suisse Group lowered their price objective on Charles Schwab from $56.00 to $53.00 and set an “outperform” rating for the company in a report on Friday, October 26th. Deutsche Bank raised Charles Schwab from a “hold” rating to a “buy” rating and boosted their price objective for the company from $52.00 to $54.00 in a report on Tuesday, October 30th. Raymond James raised Charles Schwab from a “market perform” rating to an “outperform” rating and set a $54.00 price objective for the company in a report on Tuesday, October 30th. They noted that the move was a valuation call. Morgan Stanley lowered their price objective on Charles Schwab from $66.00 to $60.00 and set a “buy” rating for the company in a report on Wednesday, November 14th. Finally, UBS Group lowered Charles Schwab from a “buy” rating to a “neutral” rating in a report on Monday, November 19th. Two analysts have rated the stock with a sell rating, six have given a hold rating and eight have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $53.43.

Shares of Charles Schwab stock opened at $45.72 on Friday. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.29 and a quick ratio of 0.29. The stock has a market capitalization of $62.73 billion, a P/E ratio of 18.66, a PEG ratio of 1.09 and a beta of 1.37. Charles Schwab has a fifty-two week low of $37.83 and a fifty-two week high of $60.22.

Charles Schwab (NYSE:SCHW) last announced its quarterly earnings data on Wednesday, January 16th. The financial services provider reported $0.65 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.64 by $0.01. The firm had revenue of $2.67 billion during the quarter, compared to analyst estimates of $2.64 billion. Charles Schwab had a return on equity of 20.28% and a net margin of 34.61%. Charles Schwab’s quarterly revenue was up 19.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.44 earnings per share. Equities research analysts anticipate that Charles Schwab will post 2.81 earnings per share for the current fiscal year.

Charles Schwab declared that its board has approved a stock buyback plan on Thursday, October 25th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 1.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its shares are undervalued.

In related news, EVP Terri R. Kallsen sold 4,913 shares of the stock in a transaction that occurred on Monday, December 3rd. The stock was sold at an average price of $46.09, for a total value of $226,440.17. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Charles R. Schwab sold 250,000 shares of the stock in a transaction that occurred on Friday, February 1st. The stock was sold at an average price of $47.04, for a total value of $11,760,000.00. The disclosure for this sale can be found here. Insiders have sold 258,652 shares of company stock valued at $12,149,386 over the last ninety days. Corporate insiders own 11.50% of the company’s stock.

A number of hedge funds have recently modified their holdings of the stock. LVW Advisors LLC grew its holdings in Charles Schwab by 3.9% in the 4th quarter. LVW Advisors LLC now owns 5,868 shares of the financial services provider’s stock worth $244,000 after buying an additional 218 shares in the last quarter. Kaizen Advisory LLC grew its holdings in Charles Schwab by 8.0% in the 4th quarter. Kaizen Advisory LLC now owns 3,217 shares of the financial services provider’s stock worth $134,000 after buying an additional 237 shares in the last quarter. Wesbanco Bank Inc. grew its holdings in Charles Schwab by 3.2% in the 4th quarter. Wesbanco Bank Inc. now owns 7,946 shares of the financial services provider’s stock worth $330,000 after buying an additional 250 shares in the last quarter. Good Life Advisors LLC grew its holdings in Charles Schwab by 4.0% in the 4th quarter. Good Life Advisors LLC now owns 6,531 shares of the financial services provider’s stock worth $271,000 after buying an additional 252 shares in the last quarter. Finally, First Personal Financial Services lifted its position in Charles Schwab by 51.9% in the fourth quarter. First Personal Financial Services now owns 825 shares of the financial services provider’s stock worth $34,000 after purchasing an additional 282 shares during the period. 78.12% of the stock is owned by institutional investors and hedge funds.

About Charles Schwab

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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Analyst Recommendations for Charles Schwab (NYSE:SCHW)

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