Zacks Investment Research upgraded shares of E-Trade Financial Corp. (NASDAQ:ETFC) from a hold rating to a buy rating in a research note issued to investors on Tuesday. The firm currently has $32.00 price target on the stock.
According to Zacks, “E*TRADE Financial’s third-quarter 2016 earnings beat the Zacks Consensus Estimate and improved year over year as well, on an adjusted basis. Results were driven by higher revenues, lower expenses and a benefit from provisions. While the quarter witnessed decline in daily average revenue trades (DARTs), it benefited from the acquisition of – OptionsHouse – that closed on Sep 12, 2016. The acquisition resulted in growth in brokerage assets in the third quarter. We remain optimistic given the company’s renewed focus on strengthening its brokerage business with the target of achieving 2-3% incremental growth. We also remain encouraged by the company’s several restructuring measures and balance-sheet growth plan. However, intense competition can have adverse impact on its revenues and customer base. Also, restrictions on the use of credit facility and increased regulatory restrictions remain headwinds.”
Several other brokerages also recently issued reports on ETFC. Nomura reissued a buy rating and set a $33.00 target price (up previously from $32.00) on shares of E-Trade Financial Corp. in a research note on Saturday, October 22nd. Jefferies Group lifted their target price on E-Trade Financial Corp. from $28.00 to $31.00 and gave the company a hold rating in a research note on Tuesday, October 11th. Buckingham Research reissued a buy rating and set a $33.00 target price on shares of E-Trade Financial Corp. in a research note on Monday, October 24th. Barclays PLC raised their price target on E-Trade Financial Corp. from $30.00 to $33.00 and gave the company an overweight rating in a report on Thursday, October 13th. Finally, Bank of America Corp. cut E-Trade Financial Corp. from a buy rating to a neutral rating and set a $33.00 price target for the company. in a report on Thursday, October 13th. Six research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. E-Trade Financial Corp. has an average rating of Buy and an average target price of $31.76.
E-Trade Financial Corp. (NASDAQ:ETFC) opened at 28.31 on Tuesday. E-Trade Financial Corp. has a one year low of $19.61 and a one year high of $30.98. The company has a market cap of $7.77 billion, a P/E ratio of 15.62 and a beta of 1.70. The company’s 50 day moving average price is $28.44 and its 200-day moving average price is $26.14.
E-Trade Financial Corp. (NASDAQ:ETFC) last issued its earnings results on Thursday, October 20th. The company reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.13. The company had revenue of $486 million for the quarter, compared to the consensus estimate of $645 million. E-Trade Financial Corp. had a return on equity of 8.31% and a net margin of 27.25%. The firm’s quarterly revenue was up 12.8% on a year-over-year basis. During the same quarter last year, the company earned $0.48 EPS. On average, analysts forecast that E-Trade Financial Corp. will post $1.82 EPS for the current fiscal year.
Large investors have recently modified their holdings of the stock. Aviva PLC purchased a new stake in shares of E-Trade Financial Corp. during the first quarter worth $3,660,000. Rafferty Asset Management LLC raised its stake in shares of E-Trade Financial Corp. by 49.2% in the first quarter. Rafferty Asset Management LLC now owns 38,261 shares of the company’s stock worth $937,000 after buying an additional 12,619 shares during the period. Meeder Asset Management Inc. purchased a new stake in shares of E-Trade Financial Corp. during the first quarter worth $132,000. UBS Asset Management Americas Inc. raised its stake in shares of E-Trade Financial Corp. by 4.7% in the first quarter. UBS Asset Management Americas Inc. now owns 687,601 shares of the company’s stock worth $16,839,000 after buying an additional 30,960 shares during the period. Finally, Quadrature Capital Ltd purchased a new stake in shares of E-Trade Financial Corp. during the first quarter worth $1,745,000. 91.25% of the stock is owned by institutional investors and hedge funds.
About E-Trade Financial Corp.
E*Trade Financial Corporation is a financial services company. The Company provides brokerage and related products and services primarily to individual retail investors under the brand E*TRADE Financial. The Company also provides investor-focused banking products, primarily sweep deposits, to retail investors.