We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
E*TRADE (ETFC) Reports Monthly Increase in October DARTs
Read MoreHide Full Article
E*TRADE Financial Corporation reported a rise in its Daily Average Revenue Trades (DARTs) in the monthly market activity report for Oct 2016. According to the report, E*TRADE’s DARTs were 168,739, up 2% from the prior month and 17% on a year-over-year basis.
Broker performance is generally measured through DARTs that represent the number of trades from which brokers can expect commission or fees. The increase in DARTs largely reflects investors’ willingness in investing in equity markets.
At the end of the month under review, E*TRADE’s total number of accounts were approximately 5.2 million, which comprised about 3.4 million brokerage accounts, 1.5 million stock plan accounts and 0.32 million banking accounts.
For the reported month, E*TRADE’s total brokerage accounts included 30,747 gross new brokerage accounts. Total brokerage accounts reflect the company’s ability to gain and retain customers who trade and invest.
Moreover, E*TRADE’s net new brokerage assets were $0.2 billion compared with $4.2 billion in the prior month.
As of the end of Oct 2016, E*TRADE’s customer security holdings were $218.1 billion, down from $222.1 billion in the prior month. The company’s brokerage-related cash declined slightly to $48.1 billion from $48.3 billion in the prior month, with customers being the net buyers of about $0.7 billion in securities. Moreover, bank-related cash and deposits for the company were $5.2 billion, in line with the prior-month figure.
Peer Performance
Among other investment brokers, Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment reported a year-over-year decline in DARTs for Oct 2016. The segment deals with the clearance and settling of trades for both individual and institutional clients globally. Total client DARTs were 603,000, down 8% from Oct 2015 and 7% from Sep 2016. However, total customer accounts were 375,000, up 15% year over year and 1% from the prior month.
TD Ameritrade Holding Corporation (AMTD - Free Report) came up with average client trades per day of 438,000 in its activity report for Oct 2016. While the reported figure declined 4% from the prior month, it remained stable compared with the prior-year period.
The Charles Schwab Corporation (SCHW - Free Report) released its monthly activity report for Oct 2016. The monthly metrics reflected an overall improvement. The total client assets were $2.7 trillion at October end, increasing 6% year over year. Further, client assets receiving ongoing advisory services were $1.35 trillion as of Oct 31, 2016, up 7% year over year.
Our Viewpoint
Amid the challenging economic scenario, growth in DARTs and new brokerage accounts will prove to be beneficial for the company. We, however, are concerned about the sluggish macroeconomic environment, which might lead to lower trading activities. Moreover, fluctuating interest rates are expected to continuously impact the company’s financials in the near term.
Nevertheless, E*TRADE’s initiatives to reduce balance-sheet risk appear to be promising. We are also encouraged by the brokerage firm’s restructuring moves and efforts to revamp its brand, launch new products and services, and improve its technology base to offer a better digital experience to customers.
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
E*TRADE (ETFC) Reports Monthly Increase in October DARTs
E*TRADE Financial Corporation reported a rise in its Daily Average Revenue Trades (DARTs) in the monthly market activity report for Oct 2016. According to the report, E*TRADE’s DARTs were 168,739, up 2% from the prior month and 17% on a year-over-year basis.
Broker performance is generally measured through DARTs that represent the number of trades from which brokers can expect commission or fees. The increase in DARTs largely reflects investors’ willingness in investing in equity markets.
At the end of the month under review, E*TRADE’s total number of accounts were approximately 5.2 million, which comprised about 3.4 million brokerage accounts, 1.5 million stock plan accounts and 0.32 million banking accounts.
For the reported month, E*TRADE’s total brokerage accounts included 30,747 gross new brokerage accounts. Total brokerage accounts reflect the company’s ability to gain and retain customers who trade and invest.
Moreover, E*TRADE’s net new brokerage assets were $0.2 billion compared with $4.2 billion in the prior month.
As of the end of Oct 2016, E*TRADE’s customer security holdings were $218.1 billion, down from $222.1 billion in the prior month. The company’s brokerage-related cash declined slightly to $48.1 billion from $48.3 billion in the prior month, with customers being the net buyers of about $0.7 billion in securities. Moreover, bank-related cash and deposits for the company were $5.2 billion, in line with the prior-month figure.
Peer Performance
Among other investment brokers, Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment reported a year-over-year decline in DARTs for Oct 2016. The segment deals with the clearance and settling of trades for both individual and institutional clients globally. Total client DARTs were 603,000, down 8% from Oct 2015 and 7% from Sep 2016. However, total customer accounts were 375,000, up 15% year over year and 1% from the prior month.
TD Ameritrade Holding Corporation (AMTD - Free Report) came up with average client trades per day of 438,000 in its activity report for Oct 2016. While the reported figure declined 4% from the prior month, it remained stable compared with the prior-year period.
The Charles Schwab Corporation (SCHW - Free Report) released its monthly activity report for Oct 2016. The monthly metrics reflected an overall improvement. The total client assets were $2.7 trillion at October end, increasing 6% year over year. Further, client assets receiving ongoing advisory services were $1.35 trillion as of Oct 31, 2016, up 7% year over year.
Our Viewpoint
Amid the challenging economic scenario, growth in DARTs and new brokerage accounts will prove to be beneficial for the company. We, however, are concerned about the sluggish macroeconomic environment, which might lead to lower trading activities. Moreover, fluctuating interest rates are expected to continuously impact the company’s financials in the near term.
Nevertheless, E*TRADE’s initiatives to reduce balance-sheet risk appear to be promising. We are also encouraged by the brokerage firm’s restructuring moves and efforts to revamp its brand, launch new products and services, and improve its technology base to offer a better digital experience to customers.
E*TRADE currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>