E*TRADE Financial (NASDAQ:ETFC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday. The firm presently has a $52.00 price target on the financial services provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 8.60% from the stock’s current price.
According to Zacks, “Shares of E*TRADE have outperformed the industry over the past three months. Also, estimates have been revised upward ahead of the company's fourth quarter 2018 earnings release. Further, the company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. The company’s several restructuring measures and balance-sheet growth plans keep us encouraged. Also, E*TRADE’s focus on core operations and strategic initiatives will likely lead to an improved top-line performance. However, intense competition and rising costs can have an adverse impact on the company’s customer base and consequently on its profitability. Nevertheless, rising interest rates environment continues to support E*TRADE's interest income.”
ETFC has been the subject of a number of other reports. Raymond James lowered their target price on shares of E*TRADE Financial from $70.00 to $64.00 and set a “strong-buy” rating for the company in a research note on Friday, October 19th. BidaskClub lowered shares of E*TRADE Financial from a “hold” rating to a “sell” rating in a research note on Tuesday, December 11th. Barclays lowered their target price on shares of E*TRADE Financial from $65.00 to $60.00 and set an “overweight” rating for the company in a research note on Friday, October 19th. Credit Suisse Group lowered their target price on shares of E*TRADE Financial from $61.00 to $58.00 and set an “outperform” rating for the company in a research note on Tuesday, October 30th. Finally, Deutsche Bank lowered their target price on shares of E*TRADE Financial from $60.00 to $59.00 and set a “buy” rating for the company in a research note on Friday, November 16th. Three analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $62.24.
Shares of ETFC opened at $47.88 on Thursday. The firm has a market cap of $12.07 billion, a PE ratio of 21.86, a P/E/G ratio of 0.67 and a beta of 1.19. E*TRADE Financial has a 12-month low of $40.41 and a 12-month high of $66.46. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.32.
E*TRADE Financial (NASDAQ:ETFC) last issued its earnings results on Thursday, October 18th. The financial services provider reported $1.00 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.83 by $0.17. The firm had revenue of $720.00 million during the quarter, compared to analyst estimates of $710.62 million. E*TRADE Financial had a net margin of 32.83% and a return on equity of 15.45%. The business’s revenue was up 20.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.49 earnings per share. Analysts predict that E*TRADE Financial will post 3.87 EPS for the current year.
E*TRADE Financial announced that its board has approved a stock buyback plan on Thursday, October 18th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the financial services provider to purchase up to 7.7% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued.
In related news, insider Brent Simonich acquired 1,943 shares of the business’s stock in a transaction dated Friday, November 2nd. The shares were purchased at an average price of $51.50 per share, for a total transaction of $100,064.50. Following the completion of the acquisition, the insider now directly owns 26,330 shares in the company, valued at approximately $1,355,995. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Rodger A. Lawson acquired 10,000 shares of the business’s stock in a transaction dated Monday, November 5th. The shares were bought at an average price of $51.27 per share, for a total transaction of $512,700.00. Following the acquisition, the insider now owns 109,191 shares of the company’s stock, valued at $5,598,222.57. The disclosure for this purchase can be found here. Over the last three months, insiders have acquired 37,668 shares of company stock valued at $1,912,154. Insiders own 0.12% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of ETFC. Alps Advisors Inc. acquired a new position in shares of E*TRADE Financial during the second quarter valued at about $212,000. Private Advisor Group LLC acquired a new position in E*TRADE Financial in the 2nd quarter worth approximately $248,000. PNC Financial Services Group Inc. increased its holdings in E*TRADE Financial by 62.5% in the 2nd quarter. PNC Financial Services Group Inc. now owns 53,318 shares of the financial services provider’s stock worth $3,261,000 after buying an additional 20,515 shares during the period. FMR LLC increased its holdings in E*TRADE Financial by 10.5% in the 2nd quarter. FMR LLC now owns 15,313,266 shares of the financial services provider’s stock worth $936,560,000 after buying an additional 1,452,296 shares during the period. Finally, Cambridge Investment Research Advisors Inc. acquired a new position in E*TRADE Financial in the 2nd quarter worth approximately $283,000. Hedge funds and other institutional investors own 93.96% of the company’s stock.
About E*TRADE Financial
E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. It also offers investor-focused banking products, primarily sweep deposits to retail investors; Federal Deposit Insurance Corporation insurance services; clearing and settlement services; investment advisory services; and financial corporate services, such as software and services for managing equity compensation plans to its corporate clients.
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