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Schwab is adding Solana, Avalanche, and Chainlink to its crypto trading platform, which already offers access to Bitcoin and Ethereum. The move is a response to client demand for more ways to trade digital assets directly through their existing brokerage accounts.
This expansion helps Schwab keep its younger or more active traders from moving their money to specialized crypto apps. While crypto trading is a small part of Schwab's massive 13 trillion dollar asset base, offering these tools helps the firm remain the primary home for all of its clients' financial needs.
Source: Business Wire
NDEX Systems is expanding its relationship with Schwab Advisor Services to offer more data and wealth management tools to registered investment advisors. These independent firms use Schwab to hold and manage their clients' money, and the new tools help them see data from multiple different firms and asset types in one place. While this is a routine technical update, it helps Schwab keep its lead in the advisor market. By making its platform easier for independent firms to use, Schwab makes it less likely those advisors will move their clients' trillions of dollars elsewhere.
Source: Business Wire
The Federal Reserve started a two-day meeting on Tuesday to decide the next move for interest rates. These decisions are vital for Schwab because it earns a large portion of its profit from the difference between the interest it pays to customers and the interest it earns on those funds.
When rates are volatile, customers often move their cash out of basic accounts into higher-paying alternatives, which can squeeze the company's profit margins. This meeting follows a rate hike in September, and any further changes will dictate how quickly Schwab can grow its lending income in the coming months.
Source: Bloomberg Markets and Finance
Evercore ISI set its target for the stock at $98. This is lower than the average target of $118 among all analysts who follow the company. While the stock has dropped about 10 percent this year, most analysts still expect the price to rise from its current level of roughly $89.
Source: Evercore ISI
The board of directors declared a quarterly cash dividend of $0.32 per common share. This payment is a way for the company to return a portion of its profits to shareholders, and the amount remains consistent with what the company has paid recently. For a long-term owner, this confirms that Schwab is maintaining its steady payout schedule even as it navigates a shifting interest rate environment.
Source: Business Wire
Management consistently sets a predictable bar and clears it by a few cents every quarter, showing they have a tight grip on how interest rates and client trading affect their bottom line.
| Expectation | |
|---|---|
| EPS | $1.72 |
| Revenue | $7.40B |
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