Charles Schwab (SCHW) is expanding its overnight trading services to all retail clients, according to a Bloomberg report. This move will allow clients to trade a wider range of securities, including stocks in the S&P 500 (SPX) and the Nasdaq 100 (NDX) indices, along with several ETFs. The trading window will now be open 24 hours a day, five days a week.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
This expansion follows a successful pilot program with 80,000 clients, which revealed high trading activity between 8:00 PM and 9:00 PM ET and 3:00 AM and 4:00 AM ET. Most actively traded stocks during the pilot included Tesla (TSLA), Nvidia (NVDA), Palantir (PLTR), MicroStrategy (MSTR), and Advanced Micro Devices (AMD).
The decision to expand overnight trading services reflects the growing demand for 24/7 trading among retail investors to capitalize on immediate market reactions to news and events. It must be noted that companies like Robinhood (HOOD) and Interactive Brokers (IBKR) are already offering extended trading hours.
SCHW Stock Hits New 52-Week High
Charles Schwab has recently been in the spotlight due to the Toronto-Dominion Bank (TD) plans to sell its entire 10.1% stake in the company. Of this total stake, SCHW plans to repurchase shares worth $1.5 billion, or about 1% of the market cap. This buyback plan exceeds analysts’ expectations and indicates SCHW’s intention to return capital to shareholders sooner than expected.
The news led several analysts to raise their price targets on SCHW stock and assign it a Buy, boosting investor sentiment. In yesterday’s session, Charles Schwab gained 2.5% and hit a new 52-week high of $84.50.
Among the bullish analysts, David Smith, CFA, from Truist Financial (TFC) raised the price target on the stock from $91 to $90. Also, he raised the 2025 EPS estimate to $4.05 and the 2026 EPS estimate to $5.05.
Is Charles Schwab a Good Buy Now?
Turning to Wall Street, SCHW stock has a Moderate Buy consensus rating based on 15 Buys, five Holds, and one Sell assigned in the last three months. At $91.21, the average Charles Schwab stock price target implies a 9.63% upside potential. Shares of the company have gained 35.15% over the past six months.
