William Blair analyst Jeff Schmitt has maintained their bullish stance on SCHW stock, giving a Buy rating on July 15.
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Jeff Schmitt has given his Buy rating due to a combination of factors including Charles Schwab’s impressive financial performance in the recent quarter. The company reported an adjusted earnings per share that surpassed both consensus and internal estimates, indicating robust profitability. Revenue growth was notably strong, driven by increased client sweep cash and a reduction in supplemental funding, which enhanced the net interest margin.
Additionally, client trading activity was vigorous, with a significant rise in daily average trading volumes, reflecting a rebound in risk appetite. The firm also experienced substantial organic growth in core net new assets and saw an increase in new brokerage account openings. Furthermore, Charles Schwab demonstrated strong capital return through preferred stock redemption and share buybacks, underscoring its solid financial position. These factors collectively support the optimistic outlook and justify the Buy rating.
In another report released on July 15, Morgan Stanley also maintained a Buy rating on the stock with a $117.00 price target.
Based on the recent corporate insider activity of 128 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SCHW in relation to earlier this year.