FY2018 EPS Estimates for Charles Schwab Co. Cut by William Blair (SCHW)

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Charles Schwab Co. (NYSE:SCHW) – Investment analysts at William Blair reduced their FY2018 EPS estimates for shares of Charles Schwab in a research report issued to clients and investors on Thursday, January 10th. William Blair analyst C. Shutler now forecasts that the financial services provider will earn $2.45 per share for the year, down from their prior forecast of $2.48. William Blair also issued estimates for Charles Schwab’s Q4 2018 earnings at $0.65 EPS, Q3 2019 earnings at $0.74 EPS, FY2019 earnings at $2.85 EPS and FY2020 earnings at $3.08 EPS.

Charles Schwab (NYSE:SCHW) last posted its earnings results on Monday, October 15th. The financial services provider reported $0.65 EPS for the quarter, hitting analysts’ consensus estimates of $0.65. Charles Schwab had a net margin of 32.65% and a return on equity of 19.02%. The business had revenue of $2.58 billion during the quarter, compared to the consensus estimate of $2.58 billion. During the same quarter in the previous year, the firm posted $0.42 EPS. The firm’s revenue was up 19.1% on a year-over-year basis.

SCHW has been the topic of several other research reports. Morgan Stanley dropped their price target on shares of Charles Schwab from $66.00 to $60.00 and set a “buy” rating on the stock in a research note on Wednesday, November 14th. UBS Group cut shares of Charles Schwab from a “buy” rating to a “neutral” rating in a research note on Monday, November 19th. Zacks Investment Research cut shares of Charles Schwab from a “buy” rating to a “hold” rating in a research note on Tuesday, December 4th. Deutsche Bank upgraded shares of Charles Schwab from a “hold” rating to a “buy” rating and lifted their price target for the stock from $52.00 to $54.00 in a research note on Tuesday, October 30th. Finally, Raymond James upgraded shares of Charles Schwab from a “market perform” rating to an “outperform” rating and set a $54.00 price target on the stock in a research note on Tuesday, October 30th. They noted that the move was a valuation call. Nine equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. The company presently has a consensus rating of “Buy” and an average price target of $54.87.

Shares of Charles Schwab stock opened at $43.82 on Friday. The firm has a market cap of $59.19 billion, a PE ratio of 26.72, a price-to-earnings-growth ratio of 0.96 and a beta of 1.35. Charles Schwab has a 1-year low of $37.83 and a 1-year high of $60.22. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.29 and a current ratio of 0.29.

Several institutional investors and hedge funds have recently added to or reduced their stakes in SCHW. Asset Advisors Investment Management LLC bought a new stake in Charles Schwab in the 3rd quarter valued at $8,604,000. D.A. Davidson & CO. increased its holdings in shares of Charles Schwab by 11.8% in the 3rd quarter. D.A. Davidson & CO. now owns 182,244 shares of the financial services provider’s stock worth $8,957,000 after buying an additional 19,298 shares during the last quarter. Pittenger & Anderson Inc. increased its holdings in shares of Charles Schwab by 1.2% in the 2nd quarter. Pittenger & Anderson Inc. now owns 164,316 shares of the financial services provider’s stock worth $8,397,000 after buying an additional 1,995 shares during the last quarter. Dorsey & Whitney Trust CO LLC increased its holdings in shares of Charles Schwab by 3.5% in the 3rd quarter. Dorsey & Whitney Trust CO LLC now owns 58,246 shares of the financial services provider’s stock worth $2,863,000 after buying an additional 1,996 shares during the last quarter. Finally, IFM Investors Pty Ltd increased its holdings in shares of Charles Schwab by 17.2% in the 3rd quarter. IFM Investors Pty Ltd now owns 64,168 shares of the financial services provider’s stock worth $3,154,000 after buying an additional 9,395 shares during the last quarter. Institutional investors own 79.52% of the company’s stock.

In related news, EVP Jonathan M. Craig sold 2,629 shares of Charles Schwab stock in a transaction on Monday, October 15th. The shares were sold at an average price of $48.84, for a total transaction of $128,400.36. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Chairman Charles R. Schwab sold 383,000 shares of Charles Schwab stock in a transaction on Thursday, November 15th. The shares were sold at an average price of $46.97, for a total transaction of $17,989,510.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 411,366 shares of company stock worth $19,333,819. 11.50% of the stock is owned by corporate insiders.

Charles Schwab announced that its board has authorized a share repurchase program on Thursday, October 25th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to repurchase up to 1.7% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

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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