In its monthly market activity report for Jan 2013,
The Charles Schwab Corporation
) reported Daily Average Revenue Trades (DARTs) of 504,700. This
was up 5% from 480,200 in the prior month and 8% from 468,400 in
the year-ago month.
Schwab's net new assets bought by the new and existing clients
totaled $12.1 billion, plunging 49% from Dec 2012, but surging
70% from Jan 2012. Also, this included a $2.2 billion inflow
related to a mutual fund clearing services client. Further, total
client assets stood at $2.01 trillion, improving 3% from Dec 2012
and 16% from Jan 2012.
Schwab opened 87,000 new brokerage accounts in the reported
month, 10% less than Dec 2012 level, but it climbed 18% from Jan
2012. The company's active brokerage accounts totaled 8.82
million, almost flat compared with the prior-month and up 3% year
Moreover, clients' banking accounts inched up 1% over the
prior-month and elevated 11% year over year to 874,000. Moreover,
the number of corporate retirement plan participants was 1,554
million, declining 1% from Dec 2012 but improving 3% from Jan
TD AMERITRADE (AMTD): Free Stock Analysis
E TRADE FINL CP (ETFC): Free Stock Analysis
EVERCORE PARTNR (EVR): Free Stock Analysis
SCHWAB(CHAS) (SCHW): Free Stock Analysis
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Earlier this week,
TD Ameritrade Holding Corporation
) reported 17% monthly and 3% yearly increases in average U.S.
trades in its Activity Report for the month of Jan 2013. For the
reported month, DARTs reached 387,000, up from 331,000 recorded
in the prior month. The rise mainly resulted from the improvement
in the equity markets.
E*TRADE Financial Corporation
) also reported a rise in its DARTs for Jan 2013. The company's
DARTs stood at 153,580, improving 18% from Dec 2012 and 6% from
Jan 2012, on the back of increased investments by investors.
Amid the challenging economy, rising DARTs and new brokerage
accounts will be beneficial for Schwab. Yet, lower trading
activities and fluctuating interest rates are expected to
continuously impact the company's financials in the near term.
Further, we remain concerned about the company's low capital
intensity relative to its peers. However, its focus on low-cost
capital structure will help it sustain better results in the
Schwab currently retains a Zacks Rank #3 (Hold). However, one of
Evercore Partners Inc.
) is more favorably placed and carries a Zacks Rank #1 (Strong