The Charles Schwab Corporation (NYSE: SCHW) stock fell -1.17% on Friday to $72.06 against a previous-day closing price of $72.91. With 8.11 million shares changed hands, the volume of the stock remained heavier than its average volume of 6.96 million shares. During the session, the Capital Markets company that operates in wider Financial sector, reached to the highest price of $74.17 whereas the lowest price it dropped to was $71.60. The 52-week range on SCHW shows that it touched its highest point at $96.24 and its lowest point at $59.35 during that stretch. It currently has a 1-year price target of $87.27. With its current market cap of 138.05 billion, SCHW has annualized dividend of $0.88 while the current yield stands at 1.22%. Beta for the stock currently stands at 1.06.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SCHW was down-trending over the past week, with a drop of -0.72%, but this was down by -1.00% over a month. Three-month performance surged to 16.17% while six-month performance fell -19.71%. The stock gained 2.36% in the past year, while it has lost -14.32% so far this year. A look at the trailing 12-month EPS for SCHW yields 3.04 with Next year EPS estimates of 4.85. For the next quarter, that number is 1.06. This implies an EPS growth rate of 33.20% for this year and 23.89% for next year. EPS is expected to grow by 19.25% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.60%.
Float and Shares Shorts:
At present, 1.90 billion SCHW shares are outstanding with a float of 1.70 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 14.6 million, which was 0.77% higher than short shares on Jun 14, 2022. In addition to Mr. Walter William Bettinger II as the firm’s CEO & Co-Chairman, Mr. Richard A. Wurster CFA, CMT serves as its Pres.
Through their ownership of 75.41% of SCHW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.63% of SCHW, in contrast to 43.14% held by mutual funds. Shares owned by individuals account for 42.72%. As the largest shareholder in SCHW with 9.67% of the stake, TD Asset Management, Inc. holds 175,778,751 shares worth 175,778,751. A second-largest stockholder of SCHW, The Vanguard Group, Inc., holds 115,730,430 shares, controlling over 6.37% of the firm’s shares. Dodge & Cox is the third largest shareholder in SCHW, holding 79,042,463 shares or 4.35% stake. With a 2.83% stake in SCHW, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 51,454,597 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.52% of SCHW stock, is the second-largest Mutual Fund holder. It holds 45,736,941 shares valued at 3.25 billion. Vanguard Wellington Fund holds 2.02% of the stake in SCHW, owning 36,724,969 shares worth 2.61 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SCHW since 18 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SCHW analysts setting a high price target of $100.00 and a low target of $73.00, the average target price over the next 12 months is $88.00. Based on these targets, SCHW could surge 38.77% to reach the target high and rise by 1.3% to reach the target low. Reaching the average price target will result in a growth of 22.12% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SCHW will report FY 2022 earnings on 01/18/2023. Analysts have provided yearly estimates in a range of $4.08 being high and $3.73 being low. For SCHW, this leads to a yearly average estimate of $3.92. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Charles Schwab Corporation surprised analysts by $0.06 when it reported $0.97 EPS against a consensus estimate of $0.91. The surprise factor in the prior quarter was -$0.07. Based on analyst estimates, the high estimate for the next quarter is $1.13 and the low estimate is $1.01. The average estimate for the next quarter is thus $1.06.
Summary of Insider Activity:
Insiders traded SCHW stock several times over the past three months with 0 Buys and 9 Sells. In these transactions, 0 shares were bought while 2,546,532 shares were sold. The number of buy transactions has increased to 60 while that of sell transactions has risen to 107 over the past year. The total number of shares bought during that period was 1,796,658 while 9,854,166 shares were sold.