Is It Worthwhile For Investors To Follow These Insider Trades On The Charles Schwab Corporation (SCHW)?


The Charles Schwab Corporation (NYSE:SCHW) finished Thursday with an addition of $0.31 to close at $82.66, an upside of 0.38 percent. An average of 4,597,700 shares of common stock have been traded in the last five days. There was a gain of $1.41 in the past week, and it reached a new high 8 times over the past 12 months. The last 20 days have seen an average of 6,330,450 shares traded, while the 50-day average volume stands at 6,960,100.

SCHW stock has increased by 2.82% in the last month. The company shares reached their 1-month lowest point of $75.98 on 12/15/22. With the stock rallying to its 52-week high on 02/09/22, shares of the company touched a low of $59.35 and a high of $96.24 in 52 weeks. It has reached a new high 8 times so far this year and lost -1.71% or -$1.44 in price. In spite of this, the price is down -14.11% from the 52-week high.

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Insider Transactions

SCHW stock investors should be aware that The Charles Schwab Corporation (SCHW) stock had its last reported insider trading activity 42 days ago on Nov 18. In this transaction, the insider spent $10,519,187. Co-Chairman, Schwab Charles R., disposed of 132,050 shares at a price of $78.29 on Nov 11. The insider now owns more than $10,338,555 worth of shares. Prior to that, MD, EVP, and General Counsel Morgan Peter J. III went on to Sale 1,463 shares at $80.04 each on Nov 08. An amount of $117,104 was transacted.

Valuation Metrics

The Charles Schwab Corporation (SCHW) has a trailing price-to-earnings (P/E) ratio of 25.09. The stock’s beta is 0.97. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 7.32, the price-to-book (PB) ratio at 5.83, and the price-to-cash flow ratio at 21.15.

The company has a payout ratio of 24.20%. The company’s most recent quarterly dividend payment was $0.22 a share, without any change from last year. Its latest increase dividend $0.02 reported on Wednesday July 27 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 0.78 and a total debt to equity ratio of 15.59 for the quarter ending September 29. Its gross profit as reported stood at $8.86 billion compared to revenue of $18.52 billion.

Earnings Surprise

For the three-month period that ended September 29, The Charles Schwab Corporation had $20.84 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.88 billion in the quarter, while revenues of $1.65 billion were grew 25.37%. The analyst consensus anticipated The Charles Schwab Corporation’s latest quarter earnings to come in at $1.05 per share, but it turned out to be $1.1, a 4.80% surprise. For the quarter, EBITDA amounted to $3.54 billion. At the end of the quarter ending September 29, The Charles Schwab Corporation’s stock balance sheet showed total debt was $26.43 billion. Shareholders own equity worth $1.82 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at The Charles Schwab Corporation (SCHW) price momentum. RSI 9-day as of the close on 29 December was 68.49%, suggesting the stock is Neutral, with historical volatility in this time frame at 11.27%.

As of today, SCHW’s price is $81.96 +1.74% or $1.41 from its 5-day moving average. SCHW is currently trading +0.15% higher than its 20-day SMA and +20.76% higher than its 100-day SMA. However, the stock’s current price level is +20.48% above the SMA50 and -0.61% below the SMA200.

The stochastic %K and %D were 92.69% and 92.00%, respectively, and the average true range (ATR) was 1.59. With the 14-day stochastic at 95.29% and the average true range at 1.71, the RSI (14) stands at 63.15%. The stock has reached 1.63 on the 9-day MACD Oscillator while the 14-day reading was at 2.46.

Analyst Ratings

Credit Suisse downgraded The Charles Schwab Corporation (NYSE: SCHW) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for The Charles Schwab Corporation (SCHW) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SCHW, while 9 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 11 others rate it as a “buy”.

What is SCHW’s price target for the next 12 months?

Analysts predict a range of price targets between $75.00 and $122.00, with a median target of $88.00. Taking a look at these predictions, the average price target given by analysts for The Charles Schwab Corporation (SCHW) stock is $91.87.


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