Brokerages forecast that E*TRADE Financial Corp (NASDAQ:ETFC) will post earnings of $1.02 per share for the current fiscal quarter, Zacks reports. Three analysts have issued estimates for E*TRADE Financial’s earnings, with estimates ranging from $0.96 to $1.08. E*TRADE Financial reported earnings of $0.64 per share during the same quarter last year, which suggests a positive year over year growth rate of 59.4%. The business is expected to report its next quarterly earnings report on Thursday, January 24th.
According to Zacks, analysts expect that E*TRADE Financial will report full year earnings of $3.77 per share for the current fiscal year, with EPS estimates ranging from $3.61 to $3.89. For the next fiscal year, analysts forecast that the firm will post earnings of $4.20 per share, with EPS estimates ranging from $4.09 to $4.35. Zacks’ EPS calculations are an average based on a survey of sell-side research analysts that follow E*TRADE Financial.
E*TRADE Financial (NASDAQ:ETFC) last released its earnings results on Thursday, October 18th. The financial services provider reported $1.00 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.17. E*TRADE Financial had a net margin of 32.83% and a return on equity of 15.45%. The firm had revenue of $720.00 million during the quarter, compared to analyst estimates of $710.62 million. During the same quarter in the previous year, the firm earned $0.49 earnings per share. The firm’s revenue for the quarter was up 20.2% compared to the same quarter last year.
ETFC has been the subject of several recent research reports. Deutsche Bank lowered their target price on shares of E*TRADE Financial from $72.00 to $70.00 and set a “buy” rating for the company in a research note on Wednesday, August 22nd. Zacks Investment Research upgraded shares of E*TRADE Financial from a “hold” rating to a “buy” rating and set a $67.00 target price for the company in a research note on Monday, July 16th. Morgan Stanley set a $70.00 target price on shares of E*TRADE Financial and gave the company a “buy” rating in a research note on Tuesday, September 18th. Jefferies Financial Group upgraded shares of E*TRADE Financial from a “hold” rating to a “buy” rating and set a $65.00 price target for the company in a research report on Wednesday, September 19th. They noted that the move was a valuation call. Finally, Bank of America lowered their price target on shares of E*TRADE Financial from $67.00 to $62.00 and set a “buy” rating for the company in a research report on Wednesday, September 26th. Three investment analysts have rated the stock with a hold rating and sixteen have given a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus target price of $65.00.
In related news, insider Rodger A. Lawson bought 10,000 shares of the firm’s stock in a transaction that occurred on Monday, November 5th. The stock was purchased at an average price of $51.27 per share, for a total transaction of $512,700.00. Following the transaction, the insider now directly owns 109,191 shares of the company’s stock, valued at approximately $5,598,222.57. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Joshua Weinreich bought 5,725 shares of the firm’s stock in a transaction that occurred on Tuesday, November 6th. The stock was bought at an average price of $52.33 per share, with a total value of $299,589.25. Following the transaction, the director now directly owns 7,318 shares in the company, valued at $382,950.94. The disclosure for this purchase can be found here. Insiders have bought 32,668 shares of company stock valued at $1,685,354 in the last 90 days. Insiders own 0.12% of the company’s stock.
A number of institutional investors and hedge funds have recently made changes to their positions in ETFC. Parallel Advisors LLC grew its position in E*TRADE Financial by 362.5% in the 2nd quarter. Parallel Advisors LLC now owns 1,679 shares of the financial services provider’s stock valued at $102,000 after buying an additional 1,316 shares in the last quarter. Stratos Wealth Partners LTD. bought a new position in E*TRADE Financial in the 3rd quarter valued at about $102,000. Nisa Investment Advisors LLC bought a new position in E*TRADE Financial in the 2nd quarter valued at about $119,000. First Interstate Bank bought a new position in E*TRADE Financial in the 3rd quarter valued at about $122,000. Finally, Qube Research & Technologies Ltd bought a new position in E*TRADE Financial in the 2nd quarter valued at about $128,000. Hedge funds and other institutional investors own 91.30% of the company’s stock.
ETFC stock opened at $53.87 on Friday. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.28 and a quick ratio of 0.28. E*TRADE Financial has a 1-year low of $42.56 and a 1-year high of $66.46. The firm has a market cap of $13.32 billion, a price-to-earnings ratio of 24.60, a price-to-earnings-growth ratio of 0.82 and a beta of 1.09.
The company also recently declared a quarterly dividend, which will be paid on Thursday, November 15th. Stockholders of record on Tuesday, October 30th will be given a dividend of $0.14 per share. The ex-dividend date is Monday, October 29th. This represents a $0.56 annualized dividend and a dividend yield of 1.04%. E*TRADE Financial’s dividend payout ratio is currently 25.57%.
E*TRADE Financial declared that its board has approved a stock repurchase program on Thursday, October 18th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the financial services provider to buy up to 7.7% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.
About E*TRADE Financial
E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. It also offers investor-focused banking products, primarily sweep deposits to retail investors; Federal Deposit Insurance Corporation insurance services; clearing and settlement services; investment advisory services; and financial corporate services, such as software and services for managing equity compensation plans to its corporate clients.
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