Good news for Charles Schwab (NYSE:SCHW); it joined the general revival of other bank stocks today. Though not quite as forcefully, gaining just over 3.5% at the time of writing. As it turns out, Schwab is not hemorrhaging cash any longer, and outflows are on the decline.
The latest news from Schwab noted that, for the third month in a row, outflows are slowing down. Back in January, outflows were $1.52 billion, which slowed to $1.36 billion in February. March saw outflows cut back further to $1.19 billion, and April saw the lowest amount yet this year at $1 billion. It’s also worth noting, though, that while some bank product balances are down, these seem to be outweighed by deposits to money market products and fixed-income securities.
Yet, even as things improve for Schwab, investors should also pay attention to bond losses, which could have a negative impact on the company’s earnings results going forward. This would put further pressure on the stock price.
Overall, analysts rate SCHW stock as a Moderate Buy based on 11 Buy ratings, four Holds, and two Sells. Further, with an average price target of $64.35, it offers investors 31.54% upside potential.