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TD Ameritrade (AMTD) August Client Trades Down, Assets Up
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Omaha, NE-based online brokerage firm, TD Ameritrade Holding Corporation (AMTD - Free Report) , came up with average client trades per day of 425,000 in its activity report for Aug 2016. The reported figure declined 6% from the prior month and 21% from the prior-year period.
Broker performance is generally measured through monthly average client trades per day. This represents the number of trades from which brokers earn commissions or fees.
However, as of Aug 31, 2016, TD Ameritrade reported $765.4 billion in total client assets, up 1% from the prior month and 13% year over year. Further, average fee-based balances were $169.9 billion, increasing 2% from the prior month and 8% from the prior-year period. Additionally, average spread-based balance of $111 billion grew 2% from the prior month and 12% year over year.
Rise in Quarterly Performance
During fiscal third-quarter 2016 (ended Jun 30), average client trades per day climbed 6.5% year over year to 461,941. Notably, net new client assets totaled $13.6 billion, up 16.2% year over year. Also, total client assets came in at $736.3 billion, up 4.8% year over year.
While average spread-based balance was $106.1 billion, increasing 11.3% year over year, average fee-based investment balance edged up slightly to $162.1 billion.
TD Ameritrade Well Positioned for Growth
Innovations in online trading, long-term investment in products and services, delivery of advanced customer service and creative marketing and sales are TD Ameritrade’s key strategies for boosting its trading and investing business. Further, the company’s association with The Toronto-Dominion Bank (TD - Free Report) provides an opportunity to cross sell its products. This is expected to significantly drive organic growth.
Amid a volatile operating environment, TD Ameritrade witnessed a consistent rise in organic client assets, which bode well for the future. However, we remain cautious as a continuous rise in expenses, margin pressure and stringent regulations may weigh on the company’s financials in the upcoming quarters.
At present, TD Ameritrade carries a Zacks Rank #3 (Hold). Hancock Holding Company is a better-ranked stock in the finance space, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Among other investment brokers, Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment reported total client DARTs of 576,000, down 22% from Aug 2015 and 4% from Jul 2016. Further, it reported Cleared Client DARTs of 534,000, a dip of 20% from the prior-year month and 4% from the prior month. However, the company recorded total customer accounts of 365,300, up 15% from the prior-year month and 1% from the preceding month.
The Charles Schwab Corporation (SCHW - Free Report) is expected to report its monthly metrics later this week.
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TD Ameritrade (AMTD) August Client Trades Down, Assets Up
Omaha, NE-based online brokerage firm, TD Ameritrade Holding Corporation (AMTD - Free Report) , came up with average client trades per day of 425,000 in its activity report for Aug 2016. The reported figure declined 6% from the prior month and 21% from the prior-year period.
Broker performance is generally measured through monthly average client trades per day. This represents the number of trades from which brokers earn commissions or fees.
However, as of Aug 31, 2016, TD Ameritrade reported $765.4 billion in total client assets, up 1% from the prior month and 13% year over year. Further, average fee-based balances were $169.9 billion, increasing 2% from the prior month and 8% from the prior-year period. Additionally, average spread-based balance of $111 billion grew 2% from the prior month and 12% year over year.
Rise in Quarterly Performance
During fiscal third-quarter 2016 (ended Jun 30), average client trades per day climbed 6.5% year over year to 461,941. Notably, net new client assets totaled $13.6 billion, up 16.2% year over year. Also, total client assets came in at $736.3 billion, up 4.8% year over year.
While average spread-based balance was $106.1 billion, increasing 11.3% year over year, average fee-based investment balance edged up slightly to $162.1 billion.
TD Ameritrade Well Positioned for Growth
Innovations in online trading, long-term investment in products and services, delivery of advanced customer service and creative marketing and sales are TD Ameritrade’s key strategies for boosting its trading and investing business. Further, the company’s association with The Toronto-Dominion Bank (TD - Free Report) provides an opportunity to cross sell its products. This is expected to significantly drive organic growth.
Amid a volatile operating environment, TD Ameritrade witnessed a consistent rise in organic client assets, which bode well for the future. However, we remain cautious as a continuous rise in expenses, margin pressure and stringent regulations may weigh on the company’s financials in the upcoming quarters.
At present, TD Ameritrade carries a Zacks Rank #3 (Hold). Hancock Holding Company is a better-ranked stock in the finance space, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Among other investment brokers, Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment reported total client DARTs of 576,000, down 22% from Aug 2015 and 4% from Jul 2016. Further, it reported Cleared Client DARTs of 534,000, a dip of 20% from the prior-year month and 4% from the prior month. However, the company recorded total customer accounts of 365,300, up 15% from the prior-year month and 1% from the preceding month.
The Charles Schwab Corporation (SCHW - Free Report) is expected to report its monthly metrics later this week.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>