Charles Schwab Corporation (SCHW) Cut to “Hold” at Zacks Investment Research, Report finds

Charles Schwab Corporation (SCHW) Cut to “Hold” at Zacks Investment Research, Report finds

The Charles Schwab Corporation (NYSE:SCHW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Schwab’s shares underperformed the Zacks categorized Investment Brokers industry, over the last three months. The company’s fourth-quarter 2016 adjusted earnings were in line the Zacks Consensus Estimate. Increase in revenues and lack of provisions were offset by higher expenses. It is well positioned to benefit from rising rate environment and plans to eliminate fee waivers subsequent to the next rate hike. Also, initiatives to strengthen trading income will support its profitability over the long term, despite the near-term revenue reduction. However, continuous rise in expenses remains a major concern. Also, significant dependence on fee-based revenue streams makes us apprehensive.”

Several other equities research analysts have also recently commented on SCHW. Jefferies Group LLC lifted their price target on shares of The Charles Schwab Corporation from $34.00 to $38.00 and gave the stock a “buy” rating in a research report on Tuesday, October 11th. Bank of America Corporation upgraded shares of The Charles Schwab Corporation from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $21.51 to $38.00 in a research report on Thursday, October 13th. Barclays PLC lifted their price target on shares of The Charles Schwab Corporation from $34.00 to $35.00 and gave the stock an “overweight” rating in a research report on Thursday, October 13th. SunTrust Banks, Inc. upgraded shares of The Charles Schwab Corporation from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $32.00 to $33.00 in a report on Tuesday, October 18th. Finally, Wells Fargo & Company restated a “market perform” rating on shares of The Charles Schwab Corporation in a report on Tuesday, October 18th. Three investment analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. The Charles Schwab Corporation presently has an average rating of “Buy” and a consensus target price of $37.09.

The Charles Schwab Corporation (NYSE:SCHW) traded down 0.40% during midday trading on Wednesday, reaching $39.44. 8,493,222 shares of the company’s stock were exchanged. The Charles Schwab Corporation has a 1-year low of $21.51 and a 1-year high of $42.61. The firm’s 50-day moving average is $40.79 and its 200 day moving average is $34.77. The stock has a market cap of $52.28 billion, a P/E ratio of 30.11 and a beta of 1.78.

The Charles Schwab Corporation (NYSE:SCHW) last issued its quarterly earnings results on Wednesday, January 18th. The company reported $0.36 EPS for the quarter, hitting the consensus estimate of $0.36. The Charles Schwab Corporation had a net margin of 25.26% and a return on equity of 14.65%. The company earned $1.97 billion during the quarter, compared to analysts’ expectations of $1.99 billion. During the same quarter in the previous year, the company earned $0.24 EPS. The Charles Schwab Corporation’s revenue was up 16.6% on a year-over-year basis. Equities analysts anticipate that The Charles Schwab Corporation will post $1.59 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 24th. Stockholders of record on Friday, February 10th will be given a $0.08 dividend. The ex-dividend date of this dividend is Wednesday, February 8th. This is a positive change from The Charles Schwab Corporation’s previous quarterly dividend of $0.07. This represents a $0.32 annualized dividend and a dividend yield of 0.81%. The Charles Schwab Corporation’s dividend payout ratio is presently 21.54%.

In related news, insider Marie A. Chandoha sold 1,300 shares of the company’s stock in a transaction dated Friday, January 6th. The shares were sold at an average price of $41.51, for a total value of $53,963.00. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Chairman Charles R. Schwab sold 16,000 shares of the company’s stock in a transaction dated Tuesday, November 29th. The shares were sold at an average price of $38.51, for a total transaction of $616,160.00. The disclosure for this sale can be found here. Insiders sold 1,801,718 shares of company stock worth $73,266,835 over the last three months. Insiders own 12.60% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the stock. Lenox Wealth Management Inc. increased its position in The Charles Schwab Corporation by 12.1% in the second quarter. Lenox Wealth Management Inc. now owns 4,126 shares of the company’s stock valued at $104,000 after buying an additional 445 shares during the period. Assetmark Inc. increased its stake in shares of The Charles Schwab Corporation by 3.3% in the third quarter. Assetmark Inc. now owns 3,733 shares of the company’s stock worth $118,000 after buying an additional 121 shares during the last quarter. First Bank & Trust purchased a new stake in shares of The Charles Schwab Corporation during the fourth quarter worth about $119,000. Financial Architects Inc increased its stake in shares of The Charles Schwab Corporation by 10.6% in the third quarter. Financial Architects Inc now owns 4,168 shares of the company’s stock worth $132,000 after buying an additional 400 shares during the last quarter. Finally, Cornerstone Advisors Inc. increased its stake in shares of The Charles Schwab Corporation by 38.0% in the third quarter. Cornerstone Advisors Inc. now owns 4,482 shares of the company’s stock worth $141,000 after buying an additional 1,235 shares during the last quarter. Institutional investors and hedge funds own 77.78% of the company’s stock.

The Charles Schwab Corporation Company Profile

The Charles Schwab Corporation is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, money management and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services and Advisor Services.

Get a free copy of the Zacks research report on The Charles Schwab Corporation (SCHW)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

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Charles Schwab Corporation (SCHW) Cut to “Hold” at Zacks Investment Research

Charles Schwab Corporation (SCHW) Cut to “Hold” at Zacks Investment Research

The Charles Schwab Corporation (NYSE:SCHW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Schwab’s shares underperformed the Zacks categorized Investment Brokers industry, over the last three months. The company’s fourth-quarter 2016 adjusted earnings were in line the Zacks Consensus Estimate. Increase in revenues and lack of provisions were offset by higher expenses. It is well positioned to benefit from rising rate environment and plans to eliminate fee waivers subsequent to the next rate hike. Also, initiatives to strengthen trading income will support its profitability over the long term, despite the near-term revenue reduction. However, continuous rise in expenses remains a major concern. Also, significant dependence on fee-based revenue streams makes us apprehensive.”

Several other equities research analysts have also recently commented on SCHW. Jefferies Group LLC lifted their price target on shares of The Charles Schwab Corporation from $34.00 to $38.00 and gave the stock a “buy” rating in a research report on Tuesday, October 11th. Bank of America Corporation upgraded shares of The Charles Schwab Corporation from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $21.51 to $38.00 in a research report on Thursday, October 13th. Barclays PLC lifted their price target on shares of The Charles Schwab Corporation from $34.00 to $35.00 and gave the stock an “overweight” rating in a research report on Thursday, October 13th. SunTrust Banks, Inc. upgraded shares of The Charles Schwab Corporation from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $32.00 to $33.00 in a report on Tuesday, October 18th. Finally, Wells Fargo & Company restated a “market perform” rating on shares of The Charles Schwab Corporation in a report on Tuesday, October 18th. Three investment analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. The Charles Schwab Corporation presently has an average rating of “Buy” and a consensus target price of $37.09.

The Charles Schwab Corporation (NYSE:SCHW) traded down 0.40% during midday trading on Wednesday, reaching $39.44. 8,493,222 shares of the company’s stock were exchanged. The Charles Schwab Corporation has a 1-year low of $21.51 and a 1-year high of $42.61. The firm’s 50-day moving average is $40.79 and its 200 day moving average is $34.77. The stock has a market cap of $52.28 billion, a P/E ratio of 30.11 and a beta of 1.78.

The Charles Schwab Corporation (NYSE:SCHW) last issued its quarterly earnings results on Wednesday, January 18th. The company reported $0.36 EPS for the quarter, hitting the consensus estimate of $0.36. The Charles Schwab Corporation had a net margin of 25.26% and a return on equity of 14.65%. The company earned $1.97 billion during the quarter, compared to analysts’ expectations of $1.99 billion. During the same quarter in the previous year, the company earned $0.24 EPS. The Charles Schwab Corporation’s revenue was up 16.6% on a year-over-year basis. Equities analysts anticipate that The Charles Schwab Corporation will post $1.59 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 24th. Stockholders of record on Friday, February 10th will be given a $0.08 dividend. The ex-dividend date of this dividend is Wednesday, February 8th. This is a positive change from The Charles Schwab Corporation’s previous quarterly dividend of $0.07. This represents a $0.32 annualized dividend and a dividend yield of 0.81%. The Charles Schwab Corporation’s dividend payout ratio is presently 21.54%.

In related news, insider Marie A. Chandoha sold 1,300 shares of the company’s stock in a transaction dated Friday, January 6th. The shares were sold at an average price of $41.51, for a total value of $53,963.00. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Chairman Charles R. Schwab sold 16,000 shares of the company’s stock in a transaction dated Tuesday, November 29th. The shares were sold at an average price of $38.51, for a total transaction of $616,160.00. The disclosure for this sale can be found here. Insiders sold 1,801,718 shares of company stock worth $73,266,835 over the last three months. Insiders own 12.60% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the stock. Lenox Wealth Management Inc. increased its position in The Charles Schwab Corporation by 12.1% in the second quarter. Lenox Wealth Management Inc. now owns 4,126 shares of the company’s stock valued at $104,000 after buying an additional 445 shares during the period. Assetmark Inc. increased its stake in shares of The Charles Schwab Corporation by 3.3% in the third quarter. Assetmark Inc. now owns 3,733 shares of the company’s stock worth $118,000 after buying an additional 121 shares during the last quarter. First Bank & Trust purchased a new stake in shares of The Charles Schwab Corporation during the fourth quarter worth about $119,000. Financial Architects Inc increased its stake in shares of The Charles Schwab Corporation by 10.6% in the third quarter. Financial Architects Inc now owns 4,168 shares of the company’s stock worth $132,000 after buying an additional 400 shares during the last quarter. Finally, Cornerstone Advisors Inc. increased its stake in shares of The Charles Schwab Corporation by 38.0% in the third quarter. Cornerstone Advisors Inc. now owns 4,482 shares of the company’s stock worth $141,000 after buying an additional 1,235 shares during the last quarter. Institutional investors and hedge funds own 77.78% of the company’s stock.

The Charles Schwab Corporation Company Profile

The Charles Schwab Corporation is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, money management and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services and Advisor Services.

Get a free copy of the Zacks research report on The Charles Schwab Corporation (SCHW)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

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