SCHW - Why Charles Schwab Stock Slumped Again on Wednesday
2024-07-17 19:02:00 ET
For the second day in a row, equity investors assertively sold out of securities brokerage Charles Schwab (NYSE: SCHW) . That wasn't altogether surprising, as negative sentiment lingered following the Tuesday release of a disappointing earnings report, and a clutch of analysts became notably more bearish on the company. As a consequence, the stock fell by over 5% in price, a worse performance than the 1.4% drop of the S&P 500 index.
The slump on Hump Day was basically the continuation of a sell-off that began the previous day. Investors didn't like what they saw with Schwab's second-quarter earnings report despite the fact that the company beat the consensus-analyst estimates for both revenue and profitability.
Adding fuel to the fire was a thorough round of analyst price-target cuts, with one of those prognosticators going so far as to downgrade his recommendation. This was TD Cowen's Bill Katz, who now feels Schwab is only worthy of a hold at a price target of $71 per share. Prior to this, the pundit was bullish on the company's future, classifying it as a buy with an $88 target.
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Why Charles Schwab Stock Slumped Again on Wednesday