E*TRADE Financial (NASDAQ:ETFC) Raised to Buy at BidaskClub

BidaskClub upgraded shares of E*TRADE Financial (NASDAQ:ETFC) from a hold rating to a buy rating in a report issued on Friday morning, BidAskClub reports.

ETFC has been the topic of several other research reports. Keefe, Bruyette & Woods upped their target price on E*TRADE Financial from $53.00 to $55.00 and gave the company an outperform rating in a research report on Friday, July 19th. Credit Suisse Group set a $57.00 target price on E*TRADE Financial and gave the company a buy rating in a research report on Friday, July 19th. Raymond James set a $57.00 target price on E*TRADE Financial and gave the company a buy rating in a report on Friday, July 19th. Zacks Investment Research lowered E*TRADE Financial from a buy rating to a hold rating in a report on Friday, May 24th. Finally, Compass Point set a $52.00 target price on E*TRADE Financial and gave the company a buy rating in a report on Tuesday, July 2nd. One analyst has rated the stock with a sell rating, three have assigned a hold rating and thirteen have given a buy rating to the company. The stock has a consensus rating of Buy and a consensus price target of $56.79.

Shares of ETFC stock opened at $46.08 on Friday. The firm has a market capitalization of $11.27 billion, a PE ratio of 11.85, a price-to-earnings-growth ratio of 1.01 and a beta of 1.15. The company has a 50-day moving average of $46.35. The company has a current ratio of 0.27, a quick ratio of 0.24 and a debt-to-equity ratio of 0.28. E*TRADE Financial has a 1-year low of $40.41 and a 1-year high of $61.87.

E*TRADE Financial (NASDAQ:ETFC) last issued its quarterly earnings results on Thursday, July 18th. The financial services provider reported $1.12 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.02. The company had revenue of $685.00 million during the quarter, compared to analysts’ expectations of $751.35 million. E*TRADE Financial had a return on equity of 18.44% and a net margin of 36.75%. The business’s quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.95 earnings per share. As a group, equities analysts forecast that E*TRADE Financial will post 4.17 earnings per share for the current year.

E*TRADE Financial declared that its board has approved a share buyback program on Thursday, July 18th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 12.9% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

The business also recently declared a quarterly dividend, which will be paid on Monday, August 26th. Stockholders of record on Monday, August 19th will be issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.22%. The ex-dividend date is Friday, August 16th. E*TRADE Financial’s payout ratio is currently 14.40%.

In other news, Director Rodger A. Lawson sold 41,322 shares of the firm’s stock in a transaction on Friday, May 17th. The stock was sold at an average price of $48.13, for a total value of $1,988,827.86. Following the completion of the transaction, the director now directly owns 114,753 shares of the company’s stock, valued at $5,523,061.89. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.20% of the stock is owned by company insiders.

Several institutional investors have recently bought and sold shares of the company. Primecap Management Co. CA lifted its stake in E*TRADE Financial by 1.7% during the first quarter. Primecap Management Co. CA now owns 13,565,625 shares of the financial services provider’s stock worth $629,852,000 after purchasing an additional 229,900 shares during the last quarter. Boston Partners lifted its stake in E*TRADE Financial by 13.9% during the first quarter. Boston Partners now owns 4,660,073 shares of the financial services provider’s stock worth $216,367,000 after purchasing an additional 567,628 shares during the last quarter. First Trust Advisors LP lifted its stake in E*TRADE Financial by 10.0% during the second quarter. First Trust Advisors LP now owns 4,276,470 shares of the financial services provider’s stock worth $190,731,000 after purchasing an additional 389,154 shares during the last quarter. Geode Capital Management LLC lifted its stake in E*TRADE Financial by 0.7% during the fourth quarter. Geode Capital Management LLC now owns 3,424,703 shares of the financial services provider’s stock worth $150,020,000 after purchasing an additional 23,931 shares during the last quarter. Finally, Norges Bank bought a new stake in E*TRADE Financial during the fourth quarter worth about $103,578,000. 91.56% of the stock is owned by hedge funds and other institutional investors.

About E*TRADE Financial

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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