E*TRADE Financial Corporation (ETFC) Lifted to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of E*TRADE Financial Corporation (NASDAQ:ETFC) from a hold rating to a buy rating in a research note released on Tuesday. Zacks Investment Research currently has $50.00 price target on the financial services provider’s stock.

According to Zacks, “Shares of E*TRADE have outperformed the industry so far this year. The performance was supported by the company’s impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. E*TRADE’s several restructuring measures and balance-sheet growth plans keep us encouraged. We anticipate the company’s focus on core operations and strategic initiatives to lead to an improved performance of the top-line. Further, the company’s improving credit quality and strong capital position will aid profitability. However, E*TRADE’s escalating expenses and intense competition remain near-term concerns.”

A number of other research firms have also recently issued reports on ETFC. Barclays PLC lifted their target price on shares of E*TRADE Financial Corporation from $45.00 to $49.00 and gave the company an overweight rating in a research note on Tuesday. Bank of America Corporation upgraded shares of E*TRADE Financial Corporation from a neutral rating to a buy rating and lifted their target price for the company from $44.00 to $49.00 in a research note on Monday. Morgan Stanley reiterated an equal weight rating and issued a $43.00 target price (up from $40.00) on shares of E*TRADE Financial Corporation in a research note on Tuesday, July 25th. Deutsche Bank AG lifted their target price on shares of E*TRADE Financial Corporation from $45.00 to $47.00 and gave the company a buy rating in a research note on Friday, July 21st. Finally, Robert W. Baird reiterated an outperform rating and issued a $49.00 target price (up from $43.00) on shares of E*TRADE Financial Corporation in a research note on Saturday, July 22nd. Five equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. The company currently has an average rating of Buy and an average target price of $44.25.

E*TRADE Financial Corporation (NASDAQ:ETFC) traded down 0.45% during trading on Tuesday, reaching $43.78. 639,030 shares of the company’s stock were exchanged. The stock has a market capitalization of $12.06 billion, a price-to-earnings ratio of 20.46 and a beta of 1.47. The company’s 50 day moving average price is $41.98 and its 200-day moving average price is $38.26. E*TRADE Financial Corporation has a 52 week low of $27.33 and a 52 week high of $45.70.

E*TRADE Financial Corporation (NASDAQ:ETFC) last posted its earnings results on Thursday, July 20th. The financial services provider reported $0.52 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.48 by $0.04. The firm had revenue of $577.00 million during the quarter, compared to analysts’ expectations of $553.31 million. E*TRADE Financial Corporation had a net margin of 28.42% and a return on equity of 9.06%. The company’s revenue was up 21.7% compared to the same quarter last year. During the same period in the previous year, the company earned $0.48 earnings per share. On average, equities analysts expect that E*TRADE Financial Corporation will post $2.24 EPS for the current year.

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E*TRADE Financial Corporation declared that its board has approved a stock buyback plan on Thursday, July 20th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 9.2% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

In related news, CFO Michael A. Pizzi sold 9,977 shares of the company’s stock in a transaction on Friday, August 18th. The shares were sold at an average price of $39.41, for a total transaction of $393,193.57. Following the completion of the transaction, the chief financial officer now directly owns 110,142 shares in the company, valued at approximately $4,340,696.22. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director James P. Healy bought 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 25th. The shares were bought at an average price of $41.97 per share, with a total value of $209,850.00. Following the completion of the purchase, the director now owns 40,792 shares in the company, valued at $1,712,040.24. The disclosure for this purchase can be found here. Over the last quarter, insiders have sold 72,623 shares of company stock valued at $2,915,711. Corporate insiders own 0.17% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in ETFC. UBS Asset Management Americas Inc. raised its stake in E*TRADE Financial Corporation by 8.1% during the 1st quarter. UBS Asset Management Americas Inc. now owns 684,806 shares of the financial services provider’s stock valued at $23,893,000 after purchasing an additional 51,389 shares during the last quarter. Envestnet Asset Management Inc. raised its stake in E*TRADE Financial Corporation by 7.9% during the 1st quarter. Envestnet Asset Management Inc. now owns 14,070 shares of the financial services provider’s stock valued at $488,000 after purchasing an additional 1,025 shares during the last quarter. Alliancebernstein L.P. raised its stake in E*TRADE Financial Corporation by 2.3% during the 1st quarter. Alliancebernstein L.P. now owns 504,270 shares of the financial services provider’s stock valued at $17,594,000 after purchasing an additional 11,274 shares during the last quarter. AXA acquired a new position in E*TRADE Financial Corporation during the 1st quarter valued at $621,000. Finally, Principal Financial Group Inc. raised its stake in E*TRADE Financial Corporation by 3.8% during the 1st quarter. Principal Financial Group Inc. now owns 430,925 shares of the financial services provider’s stock valued at $15,035,000 after purchasing an additional 15,917 shares during the last quarter. Hedge funds and other institutional investors own 92.64% of the company’s stock.

E*TRADE Financial Corporation Company Profile

E*Trade Financial Corporation is a financial services company. The Company provides online brokerage and related products and services primarily to individual retail investors under the brand E*TRADE Financial. The Company also provides investor-focused banking products, primarily sweep deposits, to retail investors.

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Analyst Recommendations for E*TRADE Financial Corporation (NASDAQ:ETFC)

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