Analyst David Smith -CFA from Truist Financial maintained a Buy rating on Charles Schwab (SCHW – Research Report) and keeping the price target at $91.00.
David Smith -CFA has given his Buy rating due to a combination of factors that highlight Charles Schwab’s strong financial performance and growth potential. The company reported impressive February metrics, with its stock outperforming the S&P 500 by a significant margin. A key factor in this performance is the acceleration of seasonally adjusted Net New Assets, which reached an annualized growth rate of 5.2%, surpassing the long-term target range for the first time in two years.
Additionally, the cash mix increased by 20 basis points to 10.0%, aligning with or slightly exceeding typical February seasonality. Account growth and trading metrics are also showing positive trends. Despite a minor adjustment to the earnings per share model due to lower rates, the slower growth in Net New Assets has been the primary concern holding back the stock. However, David Smith -CFA sees substantial upside potential, maintaining a price target of $91.
Based on the recent corporate insider activity of 125 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SCHW in relation to earlier this year.
Questions or Comments about the article? Write to editor@tipranks.com