The Charles Schwab Corporation (SCHW) Down 5.9% — Is It Time to Surrender the Shares?
The Charles Schwab Corporation (SCHW) spent the latest session under clear pressure, sliding 5.91% as the stock fell from $107.21 to $100.87, losing $6.34 in a single day. The move came on heavy trading, with volume climbing to 15.4 million shares, well above the 90-day average of about 8.9 million. That elevated turnover underscores the intensity of the latest retreat, as investors actively rotated out of the name rather than simply stepping back. With this pullback, the stock has quickly backed away from its 52-week high of $107.27 set just one session earlier on Feb. 9, 2026, giving up more than 6% from that recent peak and signaling a loss of immediate upside momentum.
Schwab’s latest decline stands out in a sector that has already been facing its own headwinds. Large financial peers such as Berkshire Hathaway (BRKA), Goldman Sachs (GS), and Brookfield Corporation (BN) all experienced mixed trading in recent sessions, but SCHW’s nearly 6% one-day drop marks a more pronounced reset. The stock’s retreat from its high-water mark, coupled with outsized volume, points to a market that is re-pricing the shares rather than simply consolidating. For now, the price action skews negative, with Schwab losing ground at a faster pace than many of its diversified financial peers and moving further away from the upper end of its recent trading range.
Why The Charles Schwab Corporation Price is Moving Lower
The recent pullback in The Charles Schwab Corporation comes after a sharp run-up to fresh 52-week highs near $107, leaving the stock vulnerable to profit-taking and valuation fatigue. A 26.57% revenue growth rate and a solid 35.92% profit margin have already been aggressively priced in, especially following the Q4 earnings beat and upbeat EPS outlook through 2026. When strong fundamentals and bullish sentiment drive shares rapidly higher, even modest shifts in risk appetite can trigger a reset, as investors lock in gains and reassess how much future growth is already embedded in the price. That dynamic is especially relevant here given the crowded “momentum” trade that has formed around SCHW in recent weeks.
Additional pressure stems from rising expectations and insider selling, which together raise the bar for future performance. The board’s 19% dividend hike and multiple analyst price target increases have amplified optimism, but they also compress the margin for error—any hint of slowing growth, margin pressure or softer trading activity could prompt further downside. Meanwhile, the Form 144 filing by Charles R. Schwab to sell more than $13 million in stock sends a cautious signal at a time when shares are near their highs, reinforcing investor concerns that near-term upside may be limited. Compared with other large financials such as Berkshire Hathaway, Goldman Sachs, and Blackstone, Schwab’s recent outperformance leaves it more exposed if the broader financials trade loses steam, adding another layer of downside risk as sentiment cools.
What is the The Charles Schwab Corporation Rating - Should I Sell?
Weiss Ratings assigns SCHW a C rating. Current recommendation is Hold. For investors, that means the overall risk/reward profile is only middle of the road, despite some seemingly attractive fundamentals. A C rating signals that, on a risk-adjusted basis, The Charles Schwab Corporation has not distinguished itself from the average stock and that caution is warranted rather than confidence.
Beneath the surface, several sub-indices explain why SCHW fails to earn a Buy rating. The Excellent Solvency Index indicates a strong balance sheet, but this strength has not translated into superior shareholder outcomes. Both the Fair Growth Index and the Fair Total Return Index show that operational expansion and stock performance have been inconsistent relative to risk, even with revenue growth of 26.57% and a profit margin of 35.92%. The market is already pricing in a lot of optimism with a forward P/E of 25.13, leaving less room for error if conditions deteriorate.
The Good Efficiency Index and return on equity of 17.05% point to competent management and decent use of capital, yet these positives have not been enough to overcome the stock’s only Fair Volatility Index, which flags a balance of gains and drawdowns that has failed to reward risk-taking meaningfully. In other words, solid metrics have not fully protected shareholders from downside or delivered standout returns.
Within Financials, SCHW’s C rating is in line with Berkshire Hathaway Inc. (BRKA, C), Capital One Financial Corporation (COF, C) and Brookfield Corporation (BN, C), but trails The Goldman Sachs Group, Inc. (GS, C+). That peer context reinforces the message: SCHW is neither a clear leader nor a disaster, but at current valuation and risk levels, investors should be careful about assuming its strengths will translate into superior performance.
About The Charles Schwab Corporation
The Charles Schwab Corporation is a large U.S. financial services provider focused on retail brokerage, wealth management, banking, and institutional services. Operating under the Schwab brand, the company targets individual investors, independent investment advisors, and workplace retirement plan participants with a wide range of brokerage and advisory platforms. Its core offerings include self-directed trading in equities, options, mutual funds, exchange-traded funds, fixed income securities, and other investment products, delivered primarily through digital channels backed by call centers and a national branch network. Schwab also offers proprietary mutual funds and ETFs, money market funds, and managed account solutions that seek to tie clients more tightly to its ecosystem.
Beyond basic brokerage, Schwab emphasizes fee-based advisory and financial planning services, often bundling them with its banking products, such as checking, savings, and lending solutions. The company operates a bank subsidiary that gathers client cash and deploys it into interest-earning assets, a structure that increases balance-sheet complexity and exposure to interest-rate and liquidity risk. Schwab further courts independent registered investment advisors through custodial, trading, and technology platforms, attempting to embed itself deeply in advisor workflows. While this integrated model creates multiple revenue streams and cross-selling opportunities, it also concentrates risk in a relatively narrow set of business levers—client asset levels, trading activity, interest-rate spreads, and customer confidence—leaving the firm vulnerable when markets, client behavior, or the rate environment move against it.
Investor Outlook
With The Charles Schwab Corporation (SCHW) carrying a C (Hold) Weiss Rating, investors may want to exercise caution and closely monitor whether recent price weakness develops into a deeper downtrend or stabilizes at key support levels. Watch for shifts in Financials-sector sentiment, interest-rate expectations, and any changes that could move the stock out of its current Hold profile. See full rankings of all C-rated Financials stocks inside the Weiss Stock Screener.
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