Research Analysts Issue Forecasts for Charles Schwab Co.’s Q1 2019 Earnings (SCHW)
Charles Schwab Co. (NYSE:SCHW) – Equities research analysts at Jefferies Financial Group upped their Q1 2019 earnings per share estimates for Charles Schwab in a report issued on Tuesday, April 9th. 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 prior estimate of $0.64. Jefferies Financial Group also issued estimates for Charles Schwab’s Q2 2019 earnings at $0.69 EPS and FY2020 earnings at $3.08 EPS.
SCHW has been the topic of several other research reports. Zacks Investment Research downgraded Charles Schwab from a “hold” rating to a “sell” rating in a report on Monday, January 14th. UBS Group downgraded Charles Schwab from a “neutral” rating to a “sell” rating and reduced their price objective for the stock from $48.00 to $42.00 in a report on Wednesday, February 20th. ValuEngine cut shares of Charles Schwab from a “hold” rating to a “sell” rating in a research report on Friday, February 22nd. Wolfe Research upgraded shares of Charles Schwab from an “underperform” rating to a “market perform” rating in a research report on Tuesday, January 8th. Finally, Morgan Stanley dropped their target price on shares of Charles Schwab from $60.00 to $55.00 and set an “overweight” rating for the company in a research report on Friday, January 4th. Two analysts have rated the stock with a sell rating, four have given a hold rating and nine have assigned a buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of $53.47.
Charles Schwab (NYSE:SCHW) last posted its quarterly earnings data on Wednesday, January 16th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.64 by $0.01. Charles Schwab had a return on equity of 20.11% and a net margin of 34.61%. The firm had revenue of $2.67 billion for the quarter, compared to the consensus estimate of $2.64 billion. During the same quarter in the prior year, the business earned $0.44 EPS. The business’s revenue for the quarter was up 19.0% compared to the same quarter last year.
Charles Schwab declared that its board has initiated a share buyback program on Wednesday, January 30th that permits the company to buyback $4.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 6.3% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.
In related news, Chairman Charles R. Schwab sold 250,000 shares of the company’s stock in a transaction on Friday, February 1st. The shares were sold at an average price of $47.04, for a total value of $11,760,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Jonathan M. Craig sold 3,739 shares of the company’s stock in a transaction on Tuesday, January 15th. The shares were sold at an average price of $43.58, for a total transaction of $162,945.62. The disclosure for this sale can be found here. Insiders have sold a total of 356,416 shares of company stock valued at $16,652,483 in the last quarter. Corporate insiders own 10.90% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. LVW Advisors LLC increased its position in shares of Charles Schwab by 3.9% in the 4th quarter. LVW Advisors LLC now owns 5,868 shares of the financial services provider’s stock valued at $244,000 after buying an additional 218 shares in the last quarter. Kaizen Advisory LLC increased its position in shares of Charles Schwab by 8.0% in the 4th quarter. Kaizen Advisory LLC now owns 3,217 shares of the financial services provider’s stock valued at $134,000 after buying an additional 237 shares in the last quarter. Wesbanco Bank Inc. increased its position in shares of Charles Schwab by 3.2% in the 4th quarter. Wesbanco Bank Inc. now owns 7,946 shares of the financial services provider’s stock valued at $330,000 after buying an additional 250 shares in the last quarter. Good Life Advisors LLC increased its position in shares of 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 valued at $271,000 after buying an additional 252 shares in the last quarter. Finally, First Personal Financial Services increased its holdings in Charles Schwab by 51.9% during the 4th 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 in the last quarter. Institutional investors and hedge funds own 80.06% of the company’s stock.
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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