Piper Jaffray: Downgrade Hits Shares of Charles Schwab (NYSE:SCHW)


Charles Schwab (NYSE:SCHW) Receives a Downgrade

Charles Schwab (NYSE:SCHW) was just downgraded by Piper Jaffray from the old “Overweight” rating to a “Neutral” in a very recent research note issued to investors and clients on 18 December. Piper Jaffray now has a $36 target PPS on the shares. Piper Jaffray’s target PPS suggests a potential upside of 10.84% from the stock’s closing share price.

From a total of 18 analysts covering Charles Schwab (NYSE:SCHW) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 0 a ”Hold”. This means that NaN of the ratings are positive. The highest target price is $40 while the lowest target price is $28. The mean of all analyst targets is $34.83 with a 6.59% above today’s ($32.47) stock price. Charles Schwab was the topic of 16 analyst reports since August 11, 2015 according to the firm StockzIntelligence Inc. Barclays Capital maintained shares on December 8 with “Overweight” rating. Compass Point maintained SCHW stock in a recent report from October 16 with “Neutral” rating.

Approximately 2.95 million shares of stock traded hands. Charles Schwab Corp (NYSE:SCHW) has risen 6.41% since May 15, 2015 and is uptrending. It has outperformed by 10.22% the S&P500.

The overall sentiment of institutions has increased to 1.27 in Q2 2015. Its up 0.13, from 1.14 in 2015Q2. The ratio increased, as 67 institutions have sold all the shares of Charles Schwab Corp that they owned while 203 funds have taken shares off the table. 72 funds have purchased shares for the first time while 270 added to their positions. These institutions now hold 957.23 million shares or 6.98% less than the 1.03 billion shares they owned in 2015Q2.

The Fund Theleme Partners Llp currently is holding shares equating to 21.56% of its total portfolio in Charles Schwab Corp representing a total of 10.74 million shares. Another fund,Triple Frond Partners Llc, is holding a total of 3.00 million shares equating to 18.13% of their holdings. Additionally, Allen Operations Llc has a 360,160 share stake in Charles Schwab Corp which represents 12.23% of their total portfolio. The Fund, Sq Advisors Llc, based out of Florida, has also built up a stake in the stock, which represents a total of 11.95% of their total portfolio. Finally Spo Advisory Corp, a fund which is based in the state of California reported a total holdings of 20.28 million shares.

Insider activity is a very important aspect to track on any stock. Going back to April 22, 2015, shareholders of Charles Schwab Corp have witnessed 1 buy, and a total of 6 selling transactions equating to a net activity of approximately $43.88 million . Schwab Charles R sold 350,000 shares worth approximately $10.12 million. Goldfarb Mark A bought 7,100 shares worth approximately $202,842. Clark Bernard J. sold 45,000 shares worth approximately $1.35M. Walther Roger O sold 35,000 shares worth approximately $1.22M. The company insider Bettinger Walter W sold 50,000 shares worth $1.69 million.

The Charles Schwab Corporation is a savings and loan holding company. The company has a market cap of $43.92 billion. Through its subsidiaries, the Company engages in wealth management, securities brokerage, banking, money management and financial advisory services. It has 32.71 P/E ratio. The Firm provides financial services to individuals and institutional clients through two divisions: Investor Services and Advisor Services.

According to Zacks Investment Research, “Charles Schwab Corp. provides a full-service investing experience to customers through a clicks and mortar multi-dimensional, five channel offering of the Internet, branch offices, speech recognition, touch-tone telephone, e-mail and wireless technologies, multilingual and international services, and direct access to professionals day or night.”