Schwab has reportedly laid off up to 2,000 employees; analyst reiterates outperform

Charles Schwab Corp.’s stock fell 0.5% on Wednesday on the heels of a report by RIABiz that the broker has laid off up to 2,000 employees this week.

The job cuts were part of a previously disclosed effort to save $500 million in the second half of the year. As of Sept. 30, Schwab SCHW, +2.54% had 35,900 employees. William Blair analyst Jeff Schmitt reiterated an outperform rating on Schwab, “due to the potential for a significant rebound in EPS in 2024 and 2025 as cash sorting abates, short-term funding costs decline, client cash stabilizes, organic growth returns to historic levels and share buybacks reemerge.”

Schmitt said in a research note on Tuesday that key risks include higher-than-expected cash sorting — moving money into higher interest-bearing accounts — as well as integration risks from its TD Ameritrade acquisition and regulatory reforms such as changes to payment for order flow and a near-term shift in the Fed’s interest rate policy to easing.Ahead of Wednesday’s trades, Schwab stock was down 37.5% in 2023, compared to a 9.2% rise by the S&P 500 SPX, +0.65%.

Source: Financial Digest (financialdigest.net)

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Morgan Stanley files bond offering in latest bank to raise capitalSteve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
Source: MarketWatch - 🏆 3. / 97 Read more »

Morgan Stanley files bond offering in latest Wall Street name to raise capitalSteve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
Source: MarketWatch - 🏆 3. / 97 Read more »

JetBlue swings to a loss, stock falls in premarket tradesSteve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
Source: MarketWatch - 🏆 3. / 97 Read more »

JetBlue stock loses altitude after facing 'staggering' weather delays — and warns of a wider-than-expected Q4 lossSteve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
Source: MarketWatch - 🏆 3. / 97 Read more »

Ares Acquisition Corp., X-energy scrap $1.8B merger due to ‘persistently volatile public markets’Steve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
Source: MarketWatch - 🏆 3. / 97 Read more »

Goldman Sachs Group Inc.’s stock extends recent gains in premarketSteve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
Source: MarketWatch - 🏆 3. / 97 Read more »