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E*TRADE Financial Corporation reported a rise in its Daily Average Revenue Trades (DARTs) for Nov 2016. According to its monthly market activity, the company’s DARTs were 208,420, up 24% from the prior month and 40% year over year.
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 3.5 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 38,140 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 $1.6 billion compared with $0.2 billion in the prior month.
At the end of Nov 2016, E*TRADE’s customer security holdings were $222.5 billion, up from $218.1 billion in the prior month. The company’s brokerage-related cash increased 4.6% to $50.3 billion from $48.1 billion in the prior month, with customers being the net sellers of about $1.1 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 increase in DARTs for Nov 2016. The segment deals with the clearance and settling of trades, for both individual and institutional clients globally. Total client DARTs were 728,000, up 14% from Nov 2015 and 21% from Oct 2016. Moreover, total customer accounts were 380,100, up 15% year over year and 1% from the prior month.
TD Ameritrade Holding Corp. (AMTD - Free Report) came up with average client trades per day of 540,000 in its activity report for Nov 2016. The reported figure improved 23% from the prior month as well as from the prior-year period.
The Charles Schwab Corp. (SCHW - Free Report) released its monthly activity report for Nov 2016. The monthly metrics reflected an overall improvement. The total client assets were $2.73 trillion at November end, increasing 7% year over year. Further, client assets receiving ongoing advisory services were $1.38 trillion as of Nov 30, 2016, up 8% year over year.
Our Viewpoint
Growth in DARTs and new brokerage accounts will prove to be beneficial for the company.
E*TRADE currently carries a Zacks Rank #3 (Hold). The company’s shares have gained more than 17% so far this year, underperforming the 24.5% growth for the Zacks categorized Investment Bank industry.
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E*TRADE (ETFC) Reports Growth in November DARTs
E*TRADE Financial Corporation reported a rise in its Daily Average Revenue Trades (DARTs) for Nov 2016. According to its monthly market activity, the company’s DARTs were 208,420, up 24% from the prior month and 40% year over year.
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 3.5 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 38,140 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 $1.6 billion compared with $0.2 billion in the prior month.
At the end of Nov 2016, E*TRADE’s customer security holdings were $222.5 billion, up from $218.1 billion in the prior month. The company’s brokerage-related cash increased 4.6% to $50.3 billion from $48.1 billion in the prior month, with customers being the net sellers of about $1.1 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 increase in DARTs for Nov 2016. The segment deals with the clearance and settling of trades, for both individual and institutional clients globally. Total client DARTs were 728,000, up 14% from Nov 2015 and 21% from Oct 2016. Moreover, total customer accounts were 380,100, up 15% year over year and 1% from the prior month.
TD Ameritrade Holding Corp. (AMTD - Free Report) came up with average client trades per day of 540,000 in its activity report for Nov 2016. The reported figure improved 23% from the prior month as well as from the prior-year period.
The Charles Schwab Corp. (SCHW - Free Report) released its monthly activity report for Nov 2016. The monthly metrics reflected an overall improvement. The total client assets were $2.73 trillion at November end, increasing 7% year over year. Further, client assets receiving ongoing advisory services were $1.38 trillion as of Nov 30, 2016, up 8% year over year.
Our Viewpoint
Growth in DARTs and new brokerage accounts will prove to be beneficial for the company.
E*TRADE currently carries a Zacks Rank #3 (Hold). The company’s shares have gained more than 17% so far this year, underperforming the 24.5% growth for the Zacks categorized Investment Bank industry.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>