Financial Corporation (ETFC) rallied more than 1% after it
reported an uptick in its Daily Average Revenue Trades (DARTs)
for Feb 2014 on Mar 14. According to the monthly market activity
report for February, E*TRADE's DARTs were 201,223, up 3% from the
prior month and 32% year over year.
Broker performance is generally measured through the DARTs that
represent the number of trades from which brokers can expect
commissions or fees.
At the end of the month under review, E*TRADE's total number of
accounts came in at approximately 4.7 million, of which about 3.0
million are brokerage accounts, 1.2 million are stock plan
accounts and 0.4 million are banking accounts.
For the reported month, E*TRADE's total brokerage accounts
included 40,932 gross new brokerage accounts. Moreover, E*TRADE's
net new brokerage assets were $1.6 billion, increasing from $1.0
billion in the prior month. Total brokerage accounts reflect the
company's ability to attract and retain customers who trade and
As of January end, E*TRADE's customer security holdings were
$186.4 billion, up 5.7% from the prior month. The company's
brokerage-related cash increased by $1.3 billion to $40.2
billion, with customers being the net buyers of about $0.3
billion securities. Moreover, bank-related cash and deposits for
the company stood at $6.3 billion, in line with the prior month.
) average client trades per day of 501,000 in its Activity Report
for Feb 2014 marked an all-time high in the company's trading
history. The figure represents a 1% rise, breaking the previous
record of 496,000 in the prior month, when it rose 30% year over
Another sector participant -
) reported average client trades of 556,400, representing a
decline of 5% from the prior month, while it was up 10% from the
prior-year period in its Activity Report for Feb 2014.
Amid the challenging economy, increase in DARTs and new brokerage
accounts will be beneficial for E*TRADE. Further, the company's
initiatives to reduce balance sheet risk appear to be promising,
although they will put near-term pressure on the net interest
We remain concerned about the sluggish macroeconomic environment,
which might lead to lower trading activities. Moreover, mounting
expenses and fluctuating interest rates are expected to impact
the company's financials in the near term.
E*TRADE currently carries a Zacks Rank #1 (Strong Buy). In the
Investment Technology Group Inc.
) holds the same Zacks Rank as E*TRADE.
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