Charles Schwab (NYSE:SCHW) Hits New 52-Week High Following Better-Than-Expected Earnings
by Kim Johansen · The Markets DailyShares of The Charles Schwab Corporation (NYSE:SCHW – Get Free Report) reached a new 52-week high on Thursday following a better than expected earnings announcement. The company traded as high as $105.16 and last traded at $104.8020, with a volume of 2625968 shares changing hands. The stock had previously closed at $101.79.
The financial services provider reported $1.39 earnings per share for the quarter, topping analysts’ consensus estimates of $1.32 by $0.07. Charles Schwab had a net margin of 35.93% and a return on equity of 21.02%. The company had revenue of $6.34 billion for the quarter, compared to analysts’ expectations of $6.19 billion. During the same period last year, the firm posted $1.01 earnings per share. The business’s quarterly revenue was up 18.9% compared to the same quarter last year. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS.
Key Stories Impacting Charles Schwab
Here are the key news stories impacting Charles Schwab this week:
- Positive Sentiment: Q4 results showed strength: Schwab reported quarterly EPS above consensus and revenue that topped estimates, with net income and year‑over‑year revenue growth cited in the company release. This beat underpins today’s bullishness. Company Press Release
- Positive Sentiment: Management raised FY‑2026 guidance to $5.70–$5.80 EPS and revenue guidance to roughly $26.2–$26.4B, both above Street consensus — a clear catalyst for upward re‑rating. InvestmentNews
- Positive Sentiment: Operational momentum: Schwab reported record assets (~$11.9T) and a large jump in trading volumes and net new assets, which supports higher fee and interest income going forward. Benzinga
- Positive Sentiment: Strategic growth: Schwab signaled plans to expand RIA lending capabilities — a product push that could deepen client relationships and increase fee/credit revenue over time. WealthManagement
- Neutral Sentiment: Management commentary and conference‑call materials (CEO interviews and a winter business update transcript) provide color on client engagement and strategy but contain no major surprises. Seeking Alpha
- Neutral Sentiment: Local philanthropy (a gift to a university financial planning clinic) is positive PR but unlikely to move the stock materially. TheBatt
- Negative Sentiment: Some outlets flag that net revenue metrics or certain top‑line components missed expectations and that expenses rose — concerns that could cap upside or cause short‑term profit taking despite the overall beat. Bloomberg
- Negative Sentiment: Conflicting headlines about whether earnings “missed” or “beat” could create volatility as investors parse different metrics and analyst takes. Barron’s
Analyst Upgrades and Downgrades
A number of research analysts recently weighed in on SCHW shares. BMO Capital Markets initiated coverage on shares of Charles Schwab in a research report on Friday, October 3rd. They issued an “outperform” rating and a $110.00 target price for the company. Morgan Stanley upped their price objective on shares of Charles Schwab from $139.00 to $148.00 and gave the company an “overweight” rating in a report on Monday, December 22nd. JMP Securities reissued a “market outperform” rating and set a $110.00 price target on shares of Charles Schwab in a report on Friday, October 17th. Wolfe Research set a $120.00 target price on shares of Charles Schwab in a research report on Monday, January 12th. Finally, UBS Group increased their price target on shares of Charles Schwab from $123.00 to $125.00 and gave the stock a “buy” rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $115.45.
Get Our Latest Analysis on SCHW
Insider Buying and Selling at Charles Schwab
In related news, insider Jonathan S. Beatty sold 2,000 shares of the business’s stock in a transaction on Tuesday, December 23rd. The stock was sold at an average price of $102.01, for a total transaction of $204,020.00. Following the sale, the insider owned 11,923 shares in the company, valued at $1,216,265.23. The trade was a 14.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 6.30% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Federated Hermes Inc. raised its holdings in shares of Charles Schwab by 2,112.7% in the 2nd quarter. Federated Hermes Inc. now owns 181,793 shares of the financial services provider’s stock worth $16,587,000 after acquiring an additional 173,577 shares during the last quarter. Vanguard Personalized Indexing Management LLC increased its holdings in Charles Schwab by 26.8% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 190,538 shares of the financial services provider’s stock worth $17,387,000 after purchasing an additional 40,275 shares in the last quarter. Figure 8 Investment Strategies LLC purchased a new stake in shares of Charles Schwab in the second quarter worth approximately $924,000. PFG Investments LLC raised its stake in shares of Charles Schwab by 10.2% in the second quarter. PFG Investments LLC now owns 5,951 shares of the financial services provider’s stock worth $543,000 after purchasing an additional 550 shares during the last quarter. Finally, W.H. Cornerstone Investments Inc. bought a new position in shares of Charles Schwab in the second quarter valued at approximately $246,000. 84.38% of the stock is owned by institutional investors and hedge funds.
Charles Schwab Stock Performance
The company has a 50-day moving average of $97.50 and a 200-day moving average of $95.75. The company has a market cap of $187.08 billion, a PE ratio of 24.65, a PEG ratio of 0.69 and a beta of 0.94. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.47.
Charles Schwab Company Profile
Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.