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Investing.com - Charles Schwab Corp. (NYSE:SCHW), which has delivered an impressive 32% return year-to-date and trades near its 52-week high of $98.28, received a price target increase from TD Cowen on Friday, following the company’s announcement of a new $20 billion share repurchase program. According to InvestingPro data, the stock currently trades slightly below its Fair Value.
TD Cowen raised its price target on Charles Schwab to $129.00 from $126.00 while maintaining a Buy rating on the stock. This aligns with the broader analyst consensus, as InvestingPro shows 16 analysts have revised their earnings upward for the upcoming period. The increase comes after Schwab’s board of directors announced the new buyback authorization on Wednesday evening, replacing a prior $15 billion program that had $6.8 billion remaining.
The $20 billion repurchase authorization represents approximately 11% of Charles Schwab’s market capitalization as of Wednesday and is 33% larger than the previous authorization announced in July 2022.
TD Cowen views the announcement favorably, noting it reinforces the firm’s belief that Schwab is moving toward enhanced capital return and signals a likely decline in balance sheet intensity. The firm also indicated the buyback program reduces execution risk around acquisitions and should be accretive to earnings per share.
The investment firm raised its adjusted earnings per share estimates for Charles Schwab for 2025-2026 and suggested the buyback announcement validates its argument for price-to-earnings ratio expansion for the stock. With an overall Financial Health score of "GOOD" on InvestingPro and a track record of maintaining dividend payments for 37 consecutive years, Charles Schwab demonstrates strong fundamental stability. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report about Charles Schwab, along with detailed financial metrics and expert analysis.
In other recent news, Charles Schwab Corporation reported second-quarter 2025 adjusted earnings per share of $1.14, surpassing both the consensus estimate of $1.09 and various analysts’ projections. Following these earnings results, Citi, JMP, and Keefe, Bruyette & Woods all raised their price targets for the company, with Citi and JMP setting a new target of $110 and KBW raising it to $108, maintaining their respective ratings on the stock. Additionally, Charles Schwab’s board authorized a new $20 billion share repurchase program, replacing a previous authorization. The company also declared a regular quarterly cash dividend of $0.27 per common share. In a move to enhance its trading services, Schwab expanded its overnight trading to include over 1,100 securities, available 24 hours a day, five days a week. This expansion primarily focuses on popular exchange-traded funds, building on previous efforts to broaden trading hours. These developments highlight ongoing strategic initiatives and financial performance at Charles Schwab.
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