Trade Volumes Surge In August For E*Trade, TD Ameritrade, Charles Schwab
- 23 October 2016
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Charles Schwab, TD Ameritrade and E*Trade Financial recently released their monthly volume figures for the month of August. After a period of relatively subdued mid-year trading activity, volumes picked up significantly through Au...
Charles Schwab, TD Ameritrade and E*Trade Financial recently released their monthly volume figures for the month of August. After a period of relatively subdued mid-year trading activity, volumes picked up significantly through August. Correspondingly, the brokerage firms continued to add total client assets under management. The yield on client assets is likely to pick up in late 2015 after relatively flattish yields through the first half of the year, as interest rates are expected to rise.
The stocks of these three brokerages fell by about 4-6% last week. Comparatively, the Dow Jones U.S. Financials Index and Dow Jones Financial Services Titans 30 Index both fell by about 1% through the week. Both these indices have fallen by over 7% since the beginning of the year. Here’s a quick roundup on the individual metrics and August performance for the brokerage firms.
TD Ameritrade’s trading volume stood at 537,000 trades per day in August, up from 455,000 trades per day in July and 434,000 trades per day through the June quarter. Moreover, August volumes were 41% higher than August 2014 volumes. Ameritrade’s Insured Deposit Account balances were 5% higher than the year ago period and about 1.5% higher on a month-over-month basis to $77.9 billion. Similarly, its interest-earning assets were about 10% higher than the prior year period at $21.4 billion in August. Ameritrade’s total client assets rose annually by about 2% annually to $679.1 billion.
Trefis has a $34 price estimate for Ameritrade’s stock, implying a market cap of $18.7 billion. This is roughly in line with the current market price.
Ameritrade’s stock price fell by about 5% last week and by 10% since the beginning of the year.
We currently forecast Ameritrade’s full year revenues for the calendar year 2015 to be around $3.38 billion and an EPS of $1.49 for FY 2015 ended September, compared to a Reuters consensus of $1.48.