Why Is Charles Schwab's Stock Shedding Its Value? | Trefis (2024)

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Why Is Charles Schwab's Stock Shedding Its Value? | Trefis? ›

Overall, Drop-in total client assets and negative market sentiment ( corona pandemic + oil price war) were the main reasons behind the drop in SCHW stock.

Charles Schwab's stock falls as earnings and revenue per trade decline. Shares of Charles Schwab Corp. fell Monday after the financial-services and brokerage company reported first-quarter earnings that fell as client trading activity increased but revenue per trade continued to decline.

The decline is due in part to attrition of some TD Ameritrade clients, according to Schwab. Analysts at Jefferies said Schwab is off to a slow start for asset gathering in 2024, estimating that the firm had 2.5% annualized organic growth last month compared with an average monthly organic growth rate of 4.4% in 2023.

Charles Schwab's threat of distress is under 29% at this time. It has slight chance of undergoing some form of financial crunch in the near future.

The average price target for Charles Schwab is $74.07. This is based on 15 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $87.00 ,the lowest forecast is $58.00. The average price target represents 2.39% Increase from the current price of $72.34.

Charles Schwab Shares Jump After Results Slump but Beat Expectations. Charles Schwab stock jumped around 3.5% after the brokerage giant reported a fall in first-quarter earnings but beat Wall Street expectations. Net income fell 15% from a year earlier to $1.36 billion in the quarter.

Your securities are protected at Schwab.

This is the legal requirement for all U.S. broker-dealers. Your segregated assets are not available to general creditors and are protected against creditors' claims in the unlikely event that a broker-dealer becomes insolvent.