Charles Schwab Corporation Common Stock (SCHW) Stock: Beyond the Surface of Its Performance?

Wells Fargo has recently initiated Charles Schwab Corporation Common Stock (SCHW) stock to Equal Weight rating, as announced on September 12, 2024, according to Finviz. Earlier, on July 29, 2024, Piper Sandler had reduced the stock from a Overweight to Neutral, setting a price target of $64 for SCHW stock. TD Cowen also reduced Hold rating with a price target of $71. Additionally, Keefe Bruyette raised Outperform rating on July 8, 2024, with a target price of $84. TD Cowen analysts, in their report published on March 22, 2024, also raised Outperform rating for Charles Schwab Corporation Common Stock’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.


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Charles Schwab Corporation Common Stock (SCHW) Stock Trading Recap

On Wednesday, Charles Schwab Corporation Common Stock (SCHW) stock saw a decline, ending the day at $71.1 which represents a decrease of $-0.79 or -1.10% from the prior close of $71.89. The stock opened at $71.75 and touched a low of $70.96 during the day, reaching a high of $72.25. The volume of shares traded was 6.06 million falling short of the average volume of 8.09 million.

SCHW Stock Performance and Moving Averages

In recent trading, Charles Schwab Corporation Common Stock (SCHW) stock price has shown some volatility, fluctuating -0.85% over the last five trades and 11.25% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -4.65%, and it has gained 11.60% in the previous three months. Currently, SCHW is trading at 2.57%, 7.54%, and 3.62% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, SCHW, a Financial sector stock, is trading -10.55% below its 52-week high but remains 43.03% above its 52-week low. The Average True Range (ATR) (14 days) of 1.37 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Charles Schwab Corporation Common Stock’s Profitability and Valuation Ratios

Charles Schwab Corporation Common Stock’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 36.87% and a profit margin of 18.28%, with a gross margin of -4.65%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Charles Schwab Corporation Common Stock’s market capitalization stands at $130.07 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 27.77, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 18.62. Additionally, the Price-to-Sales Ratio is 5.07, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.64, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 5.87% of Charles Schwab Corporation Common Stock (SCHW)’s shares, while financial institutions hold 80.10%.

Notable insider trades include Schwab Charles R., Co-Chairman at Charles Schwab Corporation Common Stock (SCHW), who sold 17225 shares on Oct 21 ’24, at $70.9 each, totaling $1.22 million. On Oct 17 ’24, Schwab-Pomerantz Carolyn, Director, sold 29800 shares for $72.16 each, amounting to $2.15 million. Additionally, on Oct 16 ’24, Schwab Charles R. sold 62345 shares at $72.52 each, generating $4.52 million.

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