Charles Schwab (NYSE:SCHW) Trading Down 7.2% – Here’s Why

Shares of The Charles Schwab Corporation (NYSE:SCHW) dropped 7.2% during mid-day trading on Tuesday . The stock traded as low as $101.61 and last traded at $99.4650. Approximately 3,730,733 shares were traded during trading, a decline of 59% from the average daily volume of 9,206,156 shares. The stock had previously closed at $107.21.

Trending Headlines about Charles Schwab

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Analyst momentum and bullish research argue Schwab remains a strong momentum/growth candidate; Zacks highlights favorable style scores that can support continued buying interest. Here’s Why The Charles Schwab Corporation (SCHW) is a Strong Momentum Stock
• Positive Sentiment: Schwab recently hit fresh 52‑week/all‑time highs, indicating strong investor demand and technical momentum that can cushion pullbacks. The Charles Schwab Corporation (SCHW) Hits Fresh High: Is There Still Room to Run?
• Positive Sentiment: Coverage and buy ratings remain supportive — broker consensus is around a “Moderate Buy,” which can underpin investor confidence after recent earnings strength. The Charles Schwab Corporation (NYSE:SCHW) Given Consensus Rating of “Moderate Buy” by Brokerages
• Positive Sentiment: Analyst commentary and dividend/price‑target discussions point to upside for large financial names, including Schwab, supporting longer‑term interest. Analysts See Upside in These 3 Dividend-Boosting Financial Giants (SCHW)
• Neutral Sentiment: Industry peers and challengers are emulating Schwab’s model (e.g., Upstox seeking a Schwab‑style playbook), which validates Schwab’s strategy but also signals intensifying competition over time. Upstox eyes Charles Schwab-style playbook as cofounder Ravi Kumar drives diversification, profitability
• Neutral Sentiment: Media mentions of retail investors “buying the dip” show mixed retail activity — could limit downside but also increase short‑term volatility. Retail investors are buying the dip in Microsoft, Netflix, Tesla: Charles Schwab’s Mazzola
• Negative Sentiment: Direct headwind today: a Benzinga report says Schwab shares are falling after Altruist launched a new AI product, sparking investor concern that AI-driven platforms could accelerate fee‑pressure and client flows away from incumbents. Why Is Charles Schwab Stock Under Pressure Today?
• Neutral Sentiment: General news on student loans (AP coverage) notes Charles Schwab Foundation support for financial literacy; not a direct driver of Schwab’s trading but relevant to public profile and education initiatives. What to know about student loan repayment plans and collections

Analyst Ratings Changes

A number of brokerages recently issued reports on SCHW. Keefe, Bruyette & Woods raised their price objective on Charles Schwab from $109.00 to $111.00 and gave the stock an “outperform” rating in a research report on Friday, October 17th. JPMorgan Chase & Co. lifted their price target on shares of Charles Schwab from $119.00 to $121.00 and gave the company an “overweight” rating in a research report on Monday, October 20th. Citigroup reissued a “market outperform” rating on shares of Charles Schwab in a research note on Monday, January 12th. Piper Sandler increased their price objective on shares of Charles Schwab from $100.00 to $105.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 14th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $131.00 target price on shares of Charles Schwab in a report on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $115.65.

Charles Schwab Trading Down 7.0%

The company’s 50 day simple moving average is $100.55 and its 200 day simple moving average is $96.71. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.58 and a quick ratio of 0.58. The firm has a market cap of $177.23 billion, a price-to-earnings ratio of 21.39, a P/E/G ratio of 0.85 and a beta of 0.94.

Charles Schwab (NYSE:SCHW) last released its earnings results on Wednesday, January 21st. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.32 by $0.07. Charles Schwab had a return on equity of 22.07% and a net margin of 37.01%.The firm had revenue of $6.34 billion during the quarter, compared to analyst estimates of $6.19 billion. During the same period last year, the business posted $1.01 earnings per share. Charles Schwab’s revenue was up 18.9% compared to the same quarter last year. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. As a group, research analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be given a dividend of $0.32 per share. This is an increase from Charles Schwab’s previous quarterly dividend of $0.27. The ex-dividend date of this dividend is Friday, February 13th. This represents a $1.28 annualized dividend and a dividend yield of 1.3%. Charles Schwab’s dividend payout ratio is presently 23.18%.

Insider Buying and Selling

In other Charles Schwab news, General Counsel Peter J. Morgan III sold 7,595 shares of the firm’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $104.38, for a total value of $792,766.10. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Jonathan S. Beatty sold 3,072 shares of the stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $98.00, for a total value of $301,056.00. Following the completion of the transaction, the insider owned 11,923 shares in the company, valued at approximately $1,168,454. The trade was a 20.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 272,077 shares of company stock worth $28,285,973. Corporate insiders own 6.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Dogwood Wealth Management LLC increased its position in Charles Schwab by 99.2% in the 4th quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider’s stock valued at $25,000 after acquiring an additional 123 shares during the period. Piscataqua Savings Bank purchased a new stake in shares of Charles Schwab during the fourth quarter worth approximately $26,000. Princeton Global Asset Management LLC acquired a new stake in shares of Charles Schwab during the second quarter worth $25,000. GoalVest Advisory LLC acquired a new stake in shares of Charles Schwab during the fourth quarter worth $28,000. Finally, West Branch Capital LLC purchased a new position in Charles Schwab in the 3rd quarter valued at $27,000. 84.38% of the stock is currently owned by institutional investors and hedge funds.

About Charles Schwab

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.