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WESTLAKE, Texas - The Charles Schwab Corporation (SCHW), a financial services giant with a market capitalization of $140 billion, has announced a minority investment in Wealth.com, an estate planning platform recognized for its innovative approach to wealth management. According to InvestingPro analysis, Schwab’s stock is currently trading near its Fair Value, reflecting the company’s solid market position. This move aims to broaden Schwab’s wealth management offerings, particularly in trust and estate services.
Wealth.com’s platform is designed to assist financial advisors in providing estate planning services more efficiently. It employs artificial intelligence to streamline the process, making it more accessible for clients to create legal documents such as wills and revocable trusts across all 50 states and D.C. at a reduced cost compared to traditional estate attorneys. This strategic move aligns with Schwab’s strong financial performance, maintaining a impressive 97% gross profit margin and generating $19.61 billion in revenue over the last twelve months.
Neesha Hathi, Managing Director at Charles Schwab, emphasized the enhancement of their wealth management services, citing the growing need for comprehensive financial solutions that address clients’ evolving needs. The investment in Wealth.com is part of Schwab’s strategy to support its advisor clients and offer scalable, user-friendly solutions to its retail clients.
Rick Wurster, President and CEO of Charles Schwab, highlighted the trend of investors seeking to manage their financial activities in one place. He noted that Wealth.com represents a significant step towards creating a supportive ecosystem for advisors and clients alike.
Rafael Loureiro, CEO of Wealth.com, expressed enthusiasm about the partnership with Schwab, suggesting that it lays the groundwork for redefining estate planning by providing modern tools that enhance advisor capabilities and client outcomes.
In addition to the investment, Schwab and Wealth.com are developing plans to make Wealth.com’s estate planning tools available to Schwab clients. However, specific details and timelines for this rollout have not yet been disclosed, and the terms of the investment remain confidential.
Charles Schwab, with $10.28 trillion in client assets as of February 28, 2025, continues to be a leading figure in the financial services industry, offering a wide range of services including wealth management, securities brokerage, and financial advisory services through its subsidiaries. InvestingPro data reveals the company has maintained dividend payments for 37 consecutive years, demonstrating its commitment to shareholder returns. With 16 analysts recently revising earnings estimates upward and a consensus recommendation of 1.86 (Buy), Schwab shows strong potential for continued growth. For detailed analysis and more exclusive insights, check out the comprehensive Pro Research Report available on InvestingPro, covering over 1,400 top US stocks.
This strategic investment is based on a press release statement and aims to expand Charles Schwab’s capabilities in addressing the diverse financial needs of its clientele.
In other recent news, Charles Schwab Corporation has reported a 44% year-over-year increase in core net new assets for February 2025, amounting to $48 billion. Total client assets reached $10.28 trillion, a 16% rise from the previous year, although slightly down by 1% from January. Daily average trades also increased by 1% month-over-month, reaching 7.45 million. Additionally, transactional sweep cash balances grew by $4.7 billion, ending February at $404.3 billion.
JMP Securities maintained a Market Outperform rating with a $94 price target, emphasizing Schwab’s strong February performance and asset inflow. Meanwhile, JPMorgan reiterated an Overweight rating and a $92 target, highlighting positive expectations for Schwab’s earnings report and its potential to reduce short-term borrowing. Morgan Stanley upgraded Schwab’s rating to Overweight, although it lowered the price target to $76, citing the company’s earnings recovery potential. Raymond James increased its price target to $90, maintaining an Outperform rating, driven by anticipated improvements in net interest margin and earnings per share. These developments reflect a positive outlook from analysts on Charles Schwab’s financial health and strategic initiatives.
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