Charles Schwab Falls as Investors Reassess Rate-Sensitive Brokerage Economics

Charles Schwab (SCHW) is down 6.0% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver appears to be a sharp reassessment of Schwab’s rate-sensitive earnings profile after last week’s Federal Reserve hike, combined with broader weakness across financial stocks. This could be because investors are focusing on how changes in rates, cash sorting, and funding costs can swing the company’s net interest revenue more than they do for some peers.

Details:

Schwab shares fell to about $100 intraday after closing near $106.88 on September 21, a much steeper drop than several large bank and brokerage peers.

Schwab has told investors that a 25 basis point move in the target fed funds rate can shift annualized net interest revenue by roughly $250 million to $300 million, underscoring how sensitive results can be to rate expectations.

The company recently said it had 40.1 million active brokerage accounts and $13.41 trillion in client assets as of August 31, showing that the selloff does not appear tied to an obvious deterioration in franchise scale.

Schwab reported record second-quarter 2026 revenue and earnings in July, so today’s decline looks more like a valuation and macro repricing event than a reaction to a fresh earnings miss.

Sources:

Charles Schwab, SEC, AP

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$SCHW Insider Trading Activity

$SCHW insiders have traded $SCHW stock on the open market 54 times in the past 6 months. Of those trades, 1 have been purchases and 53 have been sales.

Here’s a breakdown of recent trading of $SCHW stock by insiders over the last 6 months:

CHARLES R. SCHWAB (Co-Chairman) has made 0 purchases and 17 sales selling 1,056,948 shares for an estimated $105,298,187.
WALTER W BETTINGER (Co-Chairman) has made 0 purchases and 6 sales selling 536,494 shares for an estimated $58,021,931.
NIGEL J MURTAGH (Chief Risk Officer) has made 0 purchases and 6 sales selling 104,972 shares for an estimated $10,845,219.
JONATHAN M. CRAIG (MD, Head of Retail Investing) has made 0 purchases and 4 sales selling 87,116 shares for an estimated $9,127,488.
CAROLYN SCHWAB-POMERANTZ has made 0 purchases and 5 sales selling 82,936 shares for an estimated $8,718,458.
DENNIS HOWARD (MD, Chief Tech, OPS & Data Off) has made 0 purchases and 2 sales selling 30,198 shares for an estimated $3,182,043.
RICHARD A WURSTER (President & CEO) purchased 21,959 shares for an estimated $1,849,512
PAUL V WOOLWAY (MD, Chief Banking Officer) has made 0 purchases and 2 sales selling 15,883 shares for an estimated $1,572,478.
JONATHAN S BEATTY (MD, Head of Advisor Services) has made 0 purchases and 5 sales selling 9,000 shares for an estimated $917,833.
PETER J. III MORGAN (General Counsel) sold 6,952 shares for an estimated $709,341
NEESHA HATHI (MD, Head Wealth Adv, Bnk, Tst) has made 0 purchases and 2 sales selling 6,354 shares for an estimated $689,925.
PAULA A SNEED sold 5,263 shares for an estimated $563,954
FRANK C HERRINGER sold 2,520 shares for an estimated $228,313
ARUN SARIN sold 2,500 shares for an estimated $227,910

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

$SCHW Hedge Fund Activity

We have seen 1,067 institutional investors add shares of $SCHW stock to their portfolio, and 1,248 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

JPMORGAN CHASE & CO added 49,165,186 shares (+inf%) to their portfolio in Q2 2026, for an estimated $4,536,471,712
SIXTH STREET PARTNERS MANAGEMENT COMPANY, L.P. added 9,472,684 shares (+inf%) to their portfolio in Q2 2026, for an estimated $874,044,552
FMR LLC added 8,577,286 shares (+24.0%) to their portfolio in Q2 2026, for an estimated $791,426,179
WELLINGTON MANAGEMENT GROUP LLP added 7,537,489 shares (+1738.3%) to their portfolio in Q2 2026, for an estimated $695,484,110
BANK OF NEW YORK MELLON CORP removed 5,672,785 shares (-35.1%) from their portfolio in Q2 2026, for an estimated $523,427,871
PRICE T ROWE ASSOCIATES INC /MD/ removed 5,345,090 shares (-11.0%) from their portfolio in Q2 2026, for an estimated $493,191,454
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP added 4,680,363 shares (+158.5%) to their portfolio in Q2 2026, for an estimated $431,857,094

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$SCHW Congressional Stock Trading

Members of Congress have traded $SCHW stock 3 times in the past 6 months. Of those trades, 2 have been purchases and 1 have been sales.

Here’s a breakdown of recent trading of $SCHW stock by members of Congress over the last 6 months:

SENATOR ALAN ARMSTRONG has traded it 2 times. They made 2 purchases worth up to $30,000 on 03/30, 03/27 and 0 sales.
REPRESENTATIVE GILBERT RAY CISNEROS, JR. sold up to $15,000 on 03/27.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard. You can access data on congressional stock trades through the Quiver Quantitative API Congress trades endpoint.

$SCHW Price Targets

Multiple analysts have issued price targets for $SCHW recently. We have seen 10 analysts offer price targets for $SCHW in the last 6 months, with a median target of $121.0.

Here are some recent targets:

Benjamin Budish from Barclays set a target price of $122.0 on 07/09/2026
Michael Brown from UBS set a target price of $122.0 on 07/08/2026
Patrick Moley from Piper Sandler set a target price of $105.0 on 05/15/2026
Patrick O'Shaughnessy from Raymond James set a target price of $137.0 on 05/15/2026
Bill Katz from TD Cowen set a target price of $109.0 on 05/15/2026
Kenneth Worthington from JP Morgan set a target price of $131.0 on 04/17/2026
Michael Cyprys from Morgan Stanley set a target price of $125.0 on 04/17/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.