Why Charles Schwab Stock Slumped on Wednesday

By Eric Volkman – Apr 1, 2026 at 5:48PM ESTKey PointsTellingly, he left his buy recommendation intact.His adjustment had more to do with short-term volatility than long-term factors.An analyst's price target cut ended up cutting the share price of Charles Schwab (SCHW 1.79%) on Wednesday. Although the reduction wasn't drastic and the pundit behind it actually increased some estimates, investors took this to heart and sold out of the financial stock. It closed the day down nearly 2% in value. A bit of a haircut The person behind this move was Truist Securities' David Smith. That morning, Smith shaved his Schwab price target to $120 per share from his previous $122. He maintained his buy recommendation on the shares as he did so. Image source: Getty Images. The analyst's adjustment was part of a broader analysis of financial sector titles. According to reports, he's now expecting short-term volatility in securities markets to roil client assets, but he's forecasting a recovery in the second half of the year. And while he believes that the company will see lower revenue per trade on average through 2027, trading activity should be robust enough to mitigate this. On this basis, Smith raised both his full-year 2026 and 2027 earnings estimates; he now believes net income not under generally accepted accounting principles (GAAP) will be $5.95 per share in the former year and $7.30 in the latter. ExpandNYSE: SCHWCharles SchwabToday's Change(-1.79%) $-1.68Current Price$92.30Key Data PointsMarket Cap$165BDay's Range$90.04 - $95.3552wk Range$65.88 - $107.50Volume817KAvg Vol11MGross Margin83.42%Dividend Yield1.20% Sprawl is good Although the Iran war is putting pressure on many facets of the global economy, I feel Schwab -- with its wide palette of brokerage and other services -- is better insulated against economic shocks than many believe. I think it'll remain one of the most significant brokers on the scene, so anyone who thinks the markets will remain frothy should consider it a buy.Read NextApr 1, 2026 •By Leo SunWhat I'm Watching With Charles Schwab (SCHW) To See If They Beat The MarketMar 31, 2026 •By Catherine BrockWho Owns Ford? Largest Shareholders & Board of DirectorsMar 24, 2026 •By Motley Fool TranscribingSchwab (SCHW) Q4 2025 Earnings Call TranscriptApr 1, 2026 •By Motley Fool StaffMarch 2026 Mailbag: Habits, Hacks & “Boom”Apr 1, 2026 •By Motley Fool StaffThe Reality of Investing in 2026Apr 1, 2026 •By Eric VolkmanWhy Interactive Brokers Stock Ticked up TodayAbout the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedCharles SchwabNYSE: SCHW$92.30(-1.79%)-$1.68Truist FinancialNYSE: TFC$46.70(+1.58%)+$0.73*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.