Zacks Investment Research Lowers E*TRADE Financial (ETFC) to Hold

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E*TRADE Financial (NASDAQ:ETFC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports.

According to Zacks, “Shares of E*TRADE have outperformed the industry over the past three months. Also, the company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. First-quarter results benefited from higher revenues, decline in expenses and benefit to provision for loan losses. The company’s several restructuring measures and balance-sheet growth plans keep us encouraged. Also, E*TRADE’s focus on core operations and strategic initiatives along with rising interest rates will likely lead to an improved top-line performance. Further, the company continues to enhance shareholders’ value through capital deployment activities. However, rising costs due to the company's investments in franchise, remain a major concern. Further, intense competition can have an adverse impact on its customer base and consequently on profitability.”

A number of other analysts have also recently commented on the company. BidaskClub cut E*TRADE Financial from a “hold” rating to a “sell” rating in a research report on Tuesday, March 26th. Morgan Stanley boosted their price target on E*TRADE Financial from $59.00 to $61.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 7th. Barclays boosted their price target on E*TRADE Financial to $55.00 and gave the stock an “overweight” rating in a research report on Friday, January 25th. ValuEngine upgraded shares of E*TRADE Financial from a “sell” rating to a “hold” rating in a report on Wednesday, January 16th. Finally, Credit Suisse Group restated a “buy” rating on shares of E*TRADE Financial in a report on Friday, January 25th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and eleven have assigned a buy rating to the stock. The company presently has an average rating of “Buy” and an average price target of $59.83.

Shares of ETFC traded down $0.63 on Wednesday, reaching $47.87. 65,575 shares of the company’s stock traded hands, compared to its average volume of 2,296,461. The company has a current ratio of 0.24, a quick ratio of 0.24 and a debt-to-equity ratio of 0.28. The company has a market capitalization of $11.62 billion, a price-to-earnings ratio of 12.31, a PEG ratio of 1.00 and a beta of 1.16. E*TRADE Financial has a 52-week low of $40.41 and a 52-week high of $66.46.

E*TRADE Financial (NASDAQ:ETFC) last issued its quarterly earnings results on Wednesday, April 17th. The financial services provider reported $1.09 EPS for the quarter, beating the Zacks’ consensus estimate of $0.93 by $0.16. The company had revenue of $755.00 million during the quarter, compared to the consensus estimate of $738.04 million. E*TRADE Financial had a return on equity of 18.06% and a net margin of 37.50%. E*TRADE Financial’s revenue was up 6.6% on a year-over-year basis. During the same period last year, the business posted $0.88 earnings per share. As a group, equities research analysts predict that E*TRADE Financial will post 4.34 earnings per share for the current year.

A number of hedge funds and other institutional investors have recently made changes to their positions in ETFC. Liberty Wealth Management LLC purchased a new position in E*TRADE Financial in the 4th quarter worth approximately $27,000. Oregon Public Employees Retirement Fund boosted its stake in shares of E*TRADE Financial by 1,689.6% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 1,499,423 shares of the financial services provider’s stock valued at $34,000 after purchasing an additional 1,415,639 shares in the last quarter. Arrow Financial Corp bought a new position in shares of E*TRADE Financial during the first quarter valued at approximately $39,000. Bronfman E.L. Rothschild L.P. boosted its stake in shares of E*TRADE Financial by 32.0% during the fourth quarter. Bronfman E.L. Rothschild L.P. now owns 915 shares of the financial services provider’s stock valued at $40,000 after purchasing an additional 222 shares in the last quarter. Finally, IFP Advisors Inc boosted its stake in shares of E*TRADE Financial by 93.0% during the fourth quarter. IFP Advisors Inc now owns 965 shares of the financial services provider’s stock valued at $42,000 after purchasing an additional 465 shares in the last quarter. Institutional investors own 92.64% of the company’s stock.

About E*TRADE Financial

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and registered investment advisors (RIAs). It also offers investor-focused banking products, primarily sweep deposits to customers; clearing and settlement services; Federal Deposit Insurance Corporation insurance services; custody solutions to RIAs; other banking and cash management services; software and services for managing equity compensation plans to its corporate clients; retail futures transaction services; and investment advisory services.

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

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