Zacks Investment Research Upgrades E*TRADE Financial (ETFC) to “Buy”

Zacks Investment Research upgraded shares of E*TRADE Financial (NASDAQ:ETFC) from a hold rating to a buy rating in a report published on Thursday, Zacks.com reports. Zacks Investment Research currently has $56.00 price target on the financial services provider’s stock.

According to Zacks, “Shares of E*TRADE have outperformed the industry over the past three months. Also, the company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. First-quarter results benefited from higher revenues, decline in expenses and benefit to provision for loan losses. 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 along with rising interest rates will likely lead to an improved top-line performance. However, rising costs due to the company's investments in franchise, remain a major concern. Further, intense competition can have an adverse impact on its customer base and consequently on profitability. Nevertheless, the company continues to enhance shareholders’ value through capital deployment activities.”

Several other equities research analysts also recently issued reports on the company. UBS Group downgraded E*TRADE Financial from a buy rating to a neutral rating and lowered their price target for the company from $58.00 to $51.00 in a research report on Wednesday, February 20th. Credit Suisse Group reaffirmed a buy rating on shares of E*TRADE Financial in a research report on Friday, January 25th. ValuEngine downgraded E*TRADE Financial from a hold rating to a sell rating in a research report on Friday, January 25th. BidaskClub upgraded shares of E*TRADE Financial from a hold rating to a buy rating in a research note on Tuesday, April 23rd. Finally, Barclays increased their target price on shares of E*TRADE Financial to $55.00 and gave the company an overweight rating in a research note on Friday, January 25th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and twelve have assigned a buy rating to the company’s stock. E*TRADE Financial has an average rating of Buy and a consensus target price of $59.83.

Shares of NASDAQ:ETFC opened at $49.65 on Thursday. The stock has a market capitalization of $12.15 billion, a PE ratio of 12.76, a price-to-earnings-growth ratio of 1.06 and a beta of 1.16. E*TRADE Financial has a 52-week low of $40.41 and a 52-week high of $66.46. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.24 and a current ratio of 0.24.

E*TRADE Financial (NASDAQ:ETFC) last issued its quarterly earnings results on Wednesday, April 17th. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.93 by $0.16. The company had revenue of $755.00 million for the quarter, compared to the consensus estimate of $738.04 million. E*TRADE Financial had a return on equity of 18.06% and a net margin of 37.50%. The firm’s revenue was up 6.6% compared to the same quarter last year. During the same period last year, the business posted $0.88 earnings per share. On average, sell-side analysts predict that E*TRADE Financial will post 4.34 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 20th. Shareholders of record on Monday, May 13th will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.13%. The ex-dividend date is Friday, May 10th. E*TRADE Financial’s dividend payout ratio is 14.40%.

In other E*TRADE Financial news, CEO Karl A. Roessner sold 45,724 shares of the firm’s stock in a transaction dated Tuesday, February 12th. The shares were sold at an average price of $47.35, for a total transaction of $2,165,031.40. Following the completion of the transaction, the chief executive officer now owns 175,092 shares in the company, valued at $8,290,606.20. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Michael John Curcio sold 21,928 shares of the firm’s stock in a transaction dated Tuesday, February 12th. The stock was sold at an average price of $47.36, for a total transaction of $1,038,510.08. Following the transaction, the executive vice president now owns 213,896 shares of the company’s stock, valued at approximately $10,130,114.56. The disclosure for this sale can be found here. 0.20% of the stock is owned by company insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Liberty Wealth Management LLC bought a new position in shares of E*TRADE Financial in the fourth quarter valued at approximately $27,000. Oregon Public Employees Retirement Fund increased its holdings in shares of E*TRADE Financial by 1,689.6% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 1,499,423 shares of the financial services provider’s stock valued at $34,000 after purchasing an additional 1,415,639 shares in the last quarter. Arrow Financial Corp acquired a new stake in shares of E*TRADE Financial in the first quarter valued at approximately $39,000. Bronfman E.L. Rothschild L.P. increased its holdings in shares of E*TRADE Financial by 32.0% in the fourth quarter. Bronfman E.L. Rothschild L.P. now owns 915 shares of the financial services provider’s stock valued at $40,000 after purchasing an additional 222 shares in the last quarter. Finally, IFP Advisors Inc increased its holdings in shares of E*TRADE Financial by 93.0% in the fourth quarter. IFP Advisors Inc now owns 965 shares of the financial services provider’s stock valued at $42,000 after purchasing an additional 465 shares in the last quarter. Hedge funds and other institutional investors own 93.27% of the company’s stock.

E*TRADE Financial Company Profile

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and registered investment advisors (RIAs). It also offers investor-focused banking products, primarily sweep deposits to customers; clearing and settlement services; Federal Deposit Insurance Corporation insurance services; custody solutions to RIAs; other banking and cash management services; software and services for managing equity compensation plans to its corporate clients; retail futures transaction services; and investment advisory services.

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Analyst Recommendations for E*TRADE Financial (NASDAQ:ETFC)

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