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.
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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.