Raymond James analyst Patrick O’Shaughnessy maintained a Buy rating on Charles Schwab today and set a price target of $110.00.
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Patrick O’Shaughnessy has given his Buy rating due to a combination of factors including Charles Schwab’s strong financial performance and strategic initiatives. The company has successfully reduced its high-cost funding and is poised to reinvest in maturing securities at higher yields, which should mitigate any potential net interest margin pressures from expected Federal Reserve rate cuts. Additionally, Schwab’s robust retail trading activity and margin loan utilization further support its positive financial outlook.
Moreover, Schwab’s core metrics are showing significant improvement, with a notable increase in net new assets and account growth. The firm has also made strides in client engagement, as evidenced by the rise in daily average trades and derivative trading activity. With a strategic shift towards growth, including initiatives like launching spot crypto trading and expanding personal lending solutions, Schwab is well-positioned for substantial earnings growth in the coming years.
Based on the recent corporate insider activity of 139 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.