SCHW - The Charles Schwab Corporation
Chart Events
Momentum
Performance Outlook
- Short Term2W - 6W
- Mid Term6W - 9M
- Long Term9M+
| Previous Close | 33.88 |
| Open | 33.81 |
| Bid | 34.80 x 3100 |
| Ask | 34.91 x 900 |
| Day's Range | 33.81 - 34.90 |
| 52 Week Range | 28.00 - 51.65 |
| Volume | 6,021,090 |
| Avg. Volume | 11,152,465 |
| Market Cap | 44.802B |
| Beta (5Y Monthly) | 1.25 |
| PE Ratio (TTM) | 13.59 |
| EPS (TTM) | 2.56 |
| Earnings Date | Jul 16, 2020 |
| Forward Dividend & Yield | 0.72 (2.13%) |
| Ex-Dividend Date | May 07, 2020 |
| 1y Target Est | 38.88 |
Fair Value
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Schwab Intelligent Portfolios Premium™ Wins Hybrid Advice Category in Aite Group 2020 Digital Wealth Management Impact Innovation Awards
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- Insider Monkey
Were Hedge Funds Right About Souring On The Charles Schwab Corporation (SCHW)?
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]
- InvestorPlace
Buy Nasdaq Stock As the Tech Boom Accelerates
The market has had an astounding 2020 so far, and nowhere was this more true than in the tech sector. People are using tech more than ever in all facets of life. That, in turn, is powering a huge run in tech stocks. Yet the exchange where all this is happening, the Nasdaq (NASDAQ:NDAQ), is barely up. In fact, Nasdaq stock is essentially flat since February.Source: Shutterstock In a gold rush, there's great money to be made selling mining equipment. Similarly, if you're going to have a boom in growth companies, Nasdaq is going to get its share of the pie.Historically, it certainly has. The Nasdaq's earnings have more the doubled over the past six years as stocks have rallied. And now, with tech making another surge higher to record levels, it's an ideal time to get long the stock exchange where the magic is happening.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nasdaq: It's More Diversified Than You RealizeAt first glance, you might assume that Nasdaq is a simple business. It earns money from companies that list on the exchange, right? And yes, that's true. However, it does far more than that.In fact, the Nasdaq has four major revenue streams. According to its latest annual report, the largest segment, market services, accounts for just 36% of revenues. You also have information services at 31%, corporate services at 20%, and market technology bringing in the other 13%. That's an outstanding level of internal diversification. * 7 Utilities Stocks to Buy With Reassuring DividendsA stock exchange such as Nasdaq gets paid from activities that facilitate trading, from corporate events such as initial public offerings, and also information services such as selling data to brokerages and trading firms. On top of that, Nasdaq has built an ancillary business selling related financial technology and service products.The most exciting of the bunch right now is the data business. The Nasdaq (and the other stock exchanges) are arms dealers in the ever-escalating war among different algorithmic trading shops and high frequency trading firms.These active traders need the best data and are willing to pay heavily for it. That data, in turn, is a natural monopoly, as there are very few national stock exchanges, and Nasdaq in particular has a bunch of proprietary data. The Core Business Is Humming AlongWhile data is obviously a hot market right now, given the rise of high frequency trading, the core market services business is also good. Just look around. The Nasdaq composite just hit a new all-time high a few weeks ago, despite the coronavirus.It's not hard to see why, as tech stocks are flying. Cloud and software-as-a-service are particularly in favor; many names in those sectors have doubled or more since the March lows.This is good for bringing more trading activity and other related business. And that's not all. Don't forget that a major reason capital markets exist, after all, is to raise money for companies. When markets are booming that means you're going to see far more IPOs and also secondary offerings in existing equities.Who gets paid when a new tech stock sells its shares to the public? If you said the Nasdaq's shareholders, you're catching on. Nasdaq Stock Is Attractively PricedIt's not hard to find solid growth companies in the current marketplace. In fact, with all the problems that many other sectors are having, investors are rushing into the technology sector. However, it's much rarer to find a reasonably priced growth stock today.However, Nasdaq stock is still available at a fine price. Nasdaq earned $4.63 a share in 2019, and analysts forecast that it would earn more than $5.50 in 2020. We'll see if that comes through or not, given the economic shock. In any case, shares have a forward price-earnings ratio in the low 20s. That's a great level for Nasdaq. Consider that Nasdaq has grown its earnings 14% per year compounded over the past 10 years.Nasdaq has also been a massive dividend growth machine. The company initiated its dividend in 2012 at 39 cents a share per year. Since then, it has more than quadrupled its dividend, as it paid out $1.85 per share last year. With a payout ratio of less than 40%, there's more room for outsized dividend growth -- particularly if the 14% per year EPS growth rate continues as well. Nasdaq Stock VerdictNasdaq is an excellent opportunity at current prices. In fact, it's worth asking why the stock price isn't higher already, given the compelling growth rate.I suspect Nasdaq is undervalued now because investors are falsely comparing it to brokerages. The brokers have gotten into a pricing war, with commissions falling to $0 per trade at many places. This has caused stocks like Charles Schwab (NYSE:SCHW) to underperform.In theory, trading and data fees for the stock exchanges could plummet as well. In practice, this is unlikely as it is far harder to create new stock exchanges that have critical mass. The entrenched players have economic motive to preserve the status quo.Additionally, some investors fear that Fintech start-ups will disrupt the stock exchanges. So far, however, most start-ups aimed at finance have failed to transform existing systems. Things such as credit card companies, which were supposed to be obsolete by now, instead keep making record profits.Long story short, Nasdaq is riding two big waves going forward. The first is a fundamental rise in financial sophistication. Traders are using more and more data, and they have to buy it from a few select vendors, including Nasdaq.The second is that tech stocks are booming. And that may continue for quite a while as the economy reshapes itself in a post Covid-19 world.All that adds up to record earnings for Nasdaq and a stock price that will keep moving higher.Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. At the time of this writing, he owned NDAQ stock. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Buy Nasdaq Stock As the Tech Boom Accelerates appeared first on InvestorPlace.
- Business Wire
Schwab Completes Acquisition of Wasmer, Schroeder & Company, LLC
The Charles Schwab Corporation ("Schwab") announced that it has completed its asset acquisition of Wasmer, Schroeder & Company, LLC.
- Investopedia
Charles Schwab vs. TD Ameritrade
Charles Schwab and TD Ameritrade have similar features and product offerings for investors and traders at all levels.
- Motley Fool
3 More Stocks I Sold Last Month
Last week I went over some of the names that I cut loose to raise funds to eventually apply elsewhere, but now it's time to go over some of the other investments I sold, including Sonos (NASDAQ: SONO), Charles Schwab (NYSE: SCHW), and Sleep Number (NASDAQ: SNBR). There's still a lot to like in Sonos. There will be challenges, and last week Sonos announced that it would be eliminating 12% of its workforce as well as shutting down its New York retail store and a half-dozen satellite offices.
- Bloomberg
Closing the Generation Gap in Stocks May Be Market’s Next Act
(Bloomberg) -- While frenetic buying by retail investors gets all the press for driving the recovery in stocks, the beachhead established by newly minted Robinhood day traders was always a tenuous one. Now Wall Street is getting excited about a potentially bigger and more powerful force that is led by older Americans with more money.It’s a case stock bulls are increasingly drawn to after a stellar second quarter fizzled out in a disappointing June. Equity strategists are eying the intentions of a more affluent middle-aged set that remained mostly unmoved by the frenzy that broke out in chatrooms and elsewhere in April and May, scene of the fastest S&P 500 rally in nine decades.For all the bullishness among the Robinhood crowd, there’s still among older generations a healthy dose of pessimism, a sentiment that appeals to contrarians. Evidence of their skepticism surfaced as money flowed out of equity funds last quarter, vehicles that JPMorgan Chase & Co. says are preferred by older hands. Cash at retail brokerages like Charles Schwab Corp. remain near a record high and the latest survey from the American Association of Individual Investors showed bears outnumbered bulls by a ratio of 2-to-1.“The older generations of U.S. retail investors has been so far more cautious on equities than the new generation,” JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note. “The equity buying by retail investors will likely strengthen as the older cohorts, which have so far preferred to extract any remaining value in credit via buying corporate bond funds, will switch later in the year into equity funds.”As everyone knows by now, small-time day traders, armed with stimulus money and possibly in search of distraction with casinos and sports leagues closed, rose up as a formidable force in the rally that began in March and lifted the S&P 500 by 44%. Their presence on the free investing app Robinhood dominated headlines, as favored industries like airlines and hotels roared back in the rebound.According to data compiled by Vanda Research on account openings, to date most of the new money has gone into Robinhood. The platform opened 3 million new accounts from January to early May, more than double the combined openings of Schwab, Interactive Brokers Group Inc. and E*TRADE Financial Corp.One thing researchers have noticed is the demographics of those buyers, which varies depending on their point of entry. The average age of Robinhood investors is around 30, at least 15 years younger than the typical user at TD Ameritrade and Charles Schwab.JPMorgan analysts say there’s reason to believe older users will soon be forced to loosen their own purse strings when it comes to stocks, particularly if the recovery lasts and investors have to embrace more risk taking.At Schwab, clients generally still favor bonds over stocks, according to Liz Ann Sonders, the firm’s chief investment strategist. At the same time, she says, new accounts are skewing toward a younger demographic, a trend that bodes well for the market.“In the last cycle, there was an assumption that we’re never going to get younger folks interested in investing,” Sonders said in an interview on Bloomberg Television. “If we step back and try to find the glass half full here, it is hopeful that we’re attracting younger people to the whole notion of investing.”Read: Wall Street Fixates on a College Side Project Tracking RobinhoodThe direction of retail money has never mattered more than now, in a market where corporate repurchases are dwindling and Goldman Sachs anticipates household demand to step into the void left from a dearth of buybacks. While the frenzy among Robinhood traders has sparked some comparison between today and the dot-com bubble, the broader orientation of retail participation is much less exuberant.Take fund flows. Investors have pulled $7 billion out of mutual and exchange-traded funds that focus on equities since the market’s bottom in March, according to data from Investment Company Institute. That brought the total withdrawals for 2020 to $84 billion.Mike Wilson, chief U.S. equity strategist at Morgan Stanley, notes persistent skepticism among the firm’s rich clients, who are mostly older and may be more sensitive to the Covid-19 health risk. Another source of concern for this cohort, he says, is the uncertainty over the presidential election, but this too shall pass once the economy finds its footing, he said.“We don’t think retail money has been driving the rally but see potential for this as the recovery path becomes clearer,” Wilson wrote in a note. “While it’s unlikely either of these issues will be completely resolved in the near term, we think they will and simply add to the wall of worry that may lead to positive inflows later this year.”And the older generation has abundant money to put to use. Client cash at brokerage firms has stayed elevated despite a second-quarter rally that’s the best since 1998. At Schwab, cash accounted for 14% of client assets in May, a level that before March would have surpassed any time since at least 2014.“Boomers and Gen X investors have plenty of dry powder to buy stocks in the next three to six months,” said Ben Onatibia, a strategist at Vanda. “Keep tracking millennials but don’t forget boomers.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Barrons.com
Your Financial Advisor Now Has to Look Out for Your Best Interest. Mostly.
A landmark new Securities and Exchange Commission regulation is scheduled to go into effect on June 30.
- Yahoo Finance
Here's what the most sophisticated investors are doing with their cash during the market rally
Not everyone in the market is buying hand over fist. Interactive Brokers founder and chairman Thomas Peterffy joins Yahoo Finance to discuss markets.
- Quartz
Robinhood is getting paid more than its rivals for stock trades
Professional traders appear to think Robinhood customers are extra valuable. One of the ways retail brokerages, which cater to armchair investors, make money is by sending their customers’ orders to professional trading companies. Brokerage app Robinhood charges higher rates than other large brokers: Trading outfits paid the the brokerage app about 0.0024 cents per share during the first quarter, amounting to more than $30 million of payments, according to Piper Sandler, an investment bank.
- Bloomberg
Wall Street Theories on Billions Sloshing Through Schwab Funds
(Bloomberg) -- More than $8 billion is on the move in Charles Schwab Corp.’s exchange-traded funds, stirring speculation the firm could be adjusting the packaged strategies it offers clients as markets gyrate amid the pandemic.Over the past seven trading days, $4.6 billion has exited from a group of four ETFs including Schwab’s fundamental equity and intermediate-maturity Treasury funds. The firm’s emerging-market equity and inflation-focused bond offerings were among four products to rake in $3.9 billion at the same time.Schwab is the biggest holder of all of the funds, according to the latest available filings.The size of the flows -- more than half of the funds posted at least one record daily flow in the period -- and the broad range of ETFs involved is stirring speculation that Schwab is shifting exposure in its model portfolios.Such prefabricated packages of ETFs offer a one-stop solution to a client’s investment needs. Instead of spending time selecting individual funds, investors can pick a portfolio aligned with their goals and risk tolerance.It’s unclear how much cash follows such models, but it’s thought that when one makes a strategic shift, billions of dollars can move between ETFs.A Schwab spokeswoman declined to comment on whether the flows were a result of model portfolio reallocations, but acknowledged that the firm’s ETFs are used by a variety of such investments throughout the industry. Schwab’s own models run the spectrum from conservative income all the way to aggressive growth, according to its website.It’s not the only theory, however. Some strategists observe that pension fund withdrawals, a brightening outlook for emerging-market assets, or the lurking risk of an inflation uptick could be driving money in and out of the ETFs.Here are five views on what’s behind the Schwab flows:James Pillow, managing director at Moors & Cabot Inc.:With Schwab the largest holder in most of those funds, it probably is them. It makes sense. They were material contributors to equity exposure back in March. Those positions have had significant runs since then, so this looks like some well-earned profit taking. It is likely that pension funds holding these positions are adding to the withdrawals, as many are forced to reallocate some of the recent equity gains. Moving that liquidity to fixed income will keep them within their respective strategic asset allocation.Nate Geraci, president of investment-advisory firm the ETF Store:These certainly look like model portfolio shifts. The one note I’ll add is I think the interest in SCHP may be a bit broader. Given unprecedented government stimulus and Federal Reserve programs, I think some investors are seriously considering inflation for the first time in years. TIPS can serve as an excellent hedge and SCHP is meaningfully less expensive than its nearest competitor TIP.Matt Maley, chief market strategist at Miller Tabak + Co.:It seems like a model portfolio. It could be a move because of the dollar. There’s growing concern the lower dollar is going to raise commodity prices, and the lower dollar obviously is very positive for emerging markets. I wonder if some of this is because some of these individual traders who have become so active are starting to move toward individual stocks. Instead of just buying ETFs, they are saying “I could get a bigger move out of an individual stock.”Athanasios Psarofagis, ETF analyst for Bloomberg Intelligence:Given Charles Schwab is itself the largest holder of each of these products, it is likely the flows are driven by an internal model allocation change.Todd Rosenbluth, CFRA Research’s head of ETF and mutual fund research:This seems like a change in the asset allocation of some possibly in-house models and preferred usage of Schwab’s traditional beta-based ETFs and fundamental-based ETFs. The shift has been away from developed international equities with FNDF and small cap FNDA to emerging markets FNDE. But in addition, large cap SCHX has seen inflows while fundamental FNDX has outflows. FNDX has a value tilt and more exposure to financials and less exposure to information technology stocks than the more core focused SCHX.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Zacks
Schwab (SCHW) Closes Deal to Acquire Certain Assets of Motif
The acquisition of certain assets of Motif is likely to improve Schwab's (SCHW) market share and support revenues.
- Business Wire
Charles Schwab Ranks #1 in Large Plan Segment in J.D. Power U.S. Retirement Plan Participant Satisfaction Study for Third Year in a Row
Charles Schwab ranks 1 in the large plan segment in the J.D. Power 2020 U.S. Retirement Plan Participant Satisfaction Study.
- Business Wire
Charles Schwab Completes Acquisition of Motif's Technology Capabilities
The Charles Schwab Corporation announced that it has completed the asset acquisition of Motif’s technology and intellectual property.
- Zacks
Is Schwab Fundamental U.S. Broad Market Index ETF (FNDB) a Strong ETF Right Now?
Smart Beta ETF report for FNDB
- Quartz
How the retail trading boom is shaking up the US stock market
Ordinary people are piling into the stock market, snapping up shares of well-known companies like Tesla and Apple with a few taps on their phones. The influence of these app-wielding investors on the $30-trillion US stock market is still being debated, but in the meantime they are proving to be very lucrative for professional traders. Brokerages reported a swell of new account openings as much of the global economy went into lockdown, causing stock markets to swoon.
- Bloomberg
Robinhood’s New Traders Ignore Danger Signs to Bet on Stocks
(Bloomberg) -- Rich hedge fund managers are talking about it. So are not-so-rich millennials. And fast-twitch gamers, and bored sports fans and -- in all likelihood -- some 15-year-olds you know.The “it” is Robinhood Financial’s trading app, which is throwing jet fuel on the speculative fires of coronavirus-era equity markets. Not since the dot-com mania of the 1990s, when starry-eyed day traders dreamed of online riches, has a brokerage platform drawn such a frenzied following. Skeptics warn the hype could set up home-bound novices for disaster.The rush of newbie investors flocking to Robinhood has sparked controversy over how much they’re influencing markets, and whether it’s appealing to those seeking to gamble at a time when casinos are closed and major sporting events are canceled.Robinhood drew more scrutiny this week after a young user’s death, which his family has called a suicide based on a note he left.Alexander Kearns, 20, killed himself after his Robinhood account showed a negative balance of more than $700,000, according to a series of tweets by his relative Bill Brewster. The figure may have been temporary and would have been updated when stocks underlying his assigned options settled to his account, according to Brewster. But Kearns believed it reflected how much leverage he had, according to the note, which was provided to Bloomberg by his family.Robinhood pledged to change elements of its options trading platform on Friday, in response to Kearns’s death. Its co-founders said they would alter how buying power is displayed in the app, and consider additional eligibility requirements for users seeking to employ more advanced options strategies. They also said Robinhood would make a $250,000 donation to the American Foundation for Suicide Prevention. “We are personally devastated by this tragedy,” according to the blog posting written by Baiju Bhatt and Vlad Tenev.“It is not lost upon us that our company and our service have become synonymous with retail investing in America, and that this has led to millions of new investors making their first investments through Robinhood,” they said. “We recognize this profound responsibility, and we don’t take it lightly. Our aspiration is to innovate, lead, and go beyond the status quo.”Trading LossesSome responses to Brewster’s posts show traders grappling with losses in the value of their holdings, while others have highlighted that even teenagers seem to be dabbling in the app.“They’re not super finance-savvy,” Brewster said of Kearns’s family in a phone interview this week. “I don’t even know that they would have known the questions to ask.”Robinhood’s popularity reflects one aspect of modern investing culture, said Alex Caswell, a wealth planner at RHS Financial. It fits into a community that includes everything from Reddit’s Wall Street Bets forum “where everything is seen as one big casino” to FinTwit (financial Twitter), and Barstool Sports’s Dave Portnoy livestreaming his day trading to millions of fans.“There is a culture that has been built around Robinhood,” Caswell said. “That culture doesn’t necessarily just come from the fact that Robinhood exists, rather Robinhood makes that culture easier to exist.”Confetti and RapMenlo Park, California-based Robinhood encourages stock market newcomers with an irreverent tone and mobile-friendly trading system. The app shows confetti shooting when a user makes a trade, and features lists of the most popular stocks on its platform. A business news podcast Robinhood airs, “Snacks Daily,” has used rap lyrics to issue legal disclaimers (“The snacks you’re about to hear ain’t food -- it’s ear candy/They don’t reflect the views of the Robinhood family.”)A Reddit page for Robinhood users has more than 300,000 members who share memes and “really dumb” questions. In April 2019, the page had about half as many members. There’s also a server for the app’s users on Discord, an online communication application originally built for gamers.Robinhood has learning tools listed on its website, and potential investors must complete an eligibility questionnaire before they can trade options. Users must be at least 18 years old to apply for an account.Applications go through a customer identification process that validates names, ages and Social Security numbers, among other details, according to a person familiar with Robinhood’s procedures.Half of Robinhood’s new customers this year have said they are first-time investors, according to the company. More than 2 million new accounts opened in the first quarter, exceeding the number of new users at Charles Schwab Corp., TD Ameritrade Holding Corp. and E*Trade Financial Corp. combined during that period.To accommodate the influx, Robinhood’s customer support team has grown by more than 40% this year, according to the person familiar with the company’s operations. By the end of 2020, it expects to have more than twice the support staff it had in January.Read more: Wall Street Fixates on a College Side Project Tracking RobinhoodBhatt and Tenev, Stanford University classmates, founded Robinhood in 2013 and started selling trading software to hedge funds after graduation. Two years after moving to New York, the pair returned to California to launch Robinhood, which is now worth about $8 billion. Both are billionaires.Earlier this year, as the coronavirus pandemic sparked violent swings in equities worldwide, Robinhood’s trading platform repeatedly failed, leaving millions of customers in the dark. Some pulled their accounts and went to competitors. On Thursday, Robinhood was down temporarily.As much as Robinhood portrays itself as an outsider in the financial world, it earns money in staid, traditional ways. The company relies on the same financial machinery that Schwab, E*Trade and other decades-old trading platforms do.Because the company doesn’t charge trading commissions -- which is now the industry standard for discount brokers -- it collects revenue in other ways. These include collecting interest income from uninvested customer cash, lending out securities and payment for order flow.Those who seek out Robinhood may crave a non-traditional trading experience and are likely to embrace the platform no matter what, said Cait Lamberton, a professor of marketing at the University of Pennsylvania’s Wharton School.“You don’t go to Robinhood unless you want what they’re offering,” she said. “People simply won’t show up who might be dissatisfied with the offer.”(Adds Robinhood changes and statement in sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Reuters
Startup led by ex-Goldman Sachs HR chief launches diversity and inclusion index
Eskalera, a technology startup led by Goldman Sachs former human resources head Dane Holmes, has launched an index to measure corporate diversity and inclusiveness, the firm said on Thursday. Eskalera's software collects information on employee sentiment and company culture and combines it with HR data to generate a score for inclusivity that can be measured against competitors. The goal is to give companies actionable information on changes needed to increase diversity, said Holmes, Eskalera's chief executive.
