Schwab's Strong Asset Flows and Margin Expansion Bolster Outlook: Analysts

Charles Schwab's (SCHW) outlook is bolstered by strong monthly asset flows and net new assets growth rebounding above 5%, leading analysts to increase their price target to $112 and maintain a Buy rating. Analysts point to improving fundamentals, such as stronger organic growth and margin expansion, supporting over 40% EPS growth in the coming years.

Charles Schwab Corporation (SCHW) has seen a significant boost in its outlook, driven by strong monthly asset flows and net new assets growth rebounding above 5%. This positive trend has led analysts to increase their price target to $112 and maintain a Buy rating. The company's improving fundamentals, including stronger organic growth and margin expansion, are expected to support over 40% earnings per share (EPS) growth in the coming years.

The latest financial data indicates that Charles Schwab's stock has been performing well, with shares trading around $96.92. The company's market capitalization stands at $175.94 billion, and its price-to-earnings ratio is 26.05. The firm's 50-day and 200-day simple moving averages are $94.30 and $85.63, respectively, suggesting a stable trend in stock price.

In addition to the positive analyst sentiment, Charles Schwab has recently announced a $20 billion stock repurchase program, reflecting management's belief that the stock is undervalued. This program allows the company to reacquire up to 11.6% of its stock through open market purchases. The company also paid a quarterly dividend of $0.27 per share in August, representing a $1.08 annualized dividend and a yield of 1.1%.

Several institutional investors have also shown interest in Charles Schwab. Timucuan Asset Management Inc. FL trimmed its holdings in the company, but it still holds approximately 3.27 million shares, representing about 7.9% of its total assets. Other investors, such as Atwood & Palmer Inc., Westside Investment Management Inc., and Stone House Investment Management LLC, have either added to or boosted their positions in the company during the first quarter.

Charles Schwab's strong performance and positive analyst sentiment suggest that the company is well-positioned to continue its growth trajectory. As the company continues to improve its fundamentals and manage its stock repurchase program, investors may see further upside in the stock price.

References:
1. [1] https://www.marketbeat.com/instant-alerts/filing-the-charles-schwab-corporation-schw-is-timucuan-asset-management-inc-fls-4th-largest-position-2025-08-28/
2. [2] https://www.marketbeat.com/instant-alerts/filing-the-charles-schwab-corporation-schw-shares-sold-by-quantbot-technologies-lp-2025-08-28/