Charles Schwab's Trading Activity Index Rises in June Amid Historic Lows

Charles Schwab's Trading Activity Index (STAX) rose to 60.66 in June, reversing a three-month decline, but remains below its 2022 peak and the S&P 500 index. Analysts forecast a 0.35% downside from the current price, with a GF Value of $91.28 suggesting a potential 0.9% decline. The average one-year price target is $91.79, with a "Outperform" rating from 23 brokerage firms.

Charles Schwab's Trading Activity Index (STAX) rebounded in June, rising to 60.66 from 39.68 in May, after three consecutive months of declines. The index, which assesses retail investor stock positions and trading activity from Schwab's client brokerage accounts, ended the four-week period on June 27, 2025, at a "low" level compared to historical averages, despite the broader stock market climbing to new record highs [1].

The reversal in STAX was driven by a rotation into industrial and discretionary sectors, with popular names like Tesla (TSLA), Palantir Technologies (PLTR), and Amazon (AMZN) seeing increased buying activity. Conversely, tech stocks such as Nvidia (NVDA) and Microsoft (MSFT) were among the names most frequently sold by clients during the period [1].

Analysts forecast a 0.35% downside from the current price of Schwab's stock, with a GF Value of $91.28 suggesting a potential 0.9% decline. The average one-year price target is $91.79, with 23 brokerage firms rating Schwab as an "Outperform" [1].

Institutional investors have also shown interest in Schwab's stock. Envestnet Asset Management Inc. increased its holdings in Schwab by 6.5% during the first quarter, owning about 0.32% of the company's stock worth $452.53 million at the end of the quarter. Other large investors, such as Brighton Jones LLC and Banco Santander S.A., also grew their positions in Schwab during the fourth quarter [2].

Charles Schwab is expected to announce its Q2 2025 earnings results on Tuesday, July 15th. Analysts expect the company to report earnings of $1.06 per share and revenue of $5.64 billion for the quarter [3].

References:
[1] https://seekingalpha.com/news/4465963-schwab-trading-activity-index-snaps-three-month-losing-streak-in-june
[2] https://www.marketbeat.com/instant-alerts/filing-envestnet-asset-management-inc-acquires-351198-shares-of-the-charles-schwab-corporation-nyseschw-2025-07-08/
[3] https://www.marketbeat.com/instant-alerts/charles-schwab-schw-projected-to-post-quarterly-earnings-on-tuesday-2025-07-08/