Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  TD Ameritrade Holding Corp.    AMTD

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Retail investors jump back into stocks in February

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/01/2012 | 09:09pm CEST

Individual investors moved back into the markets in February to take advantage of rising stock prices as the economic recovery gained steam and risk aversion eased, said the head of one of the top U.S. discount brokers.

From mid-December through January, ongoing concerns over the debt crisis in Europe and the effect it might have on the fragile U.S. economy had many retail investors reluctant to engage in the markets, said Fred Tomczyk, chief executive of TD Ameritrade.

Stocks have been on the upswing for months, but retail investors are typically slower to get back into the market after a period of weakness than are big institutional traders.

"But the retail investor is now coming back to the market in a noticeable way," said Tomczyk.

Actions by the European Central Bank to ensure liquidity in its banking system, along with a raft of improving U.S. economic indicators that included housing, employment, and consumer confidence data, have helped the S&P 500 rally more than 9 percent this year.

"The market performance has sort of dragged individual investors back in, but we need to see continued improvement in the markets to keep up the momentum," said Richard Repetto, an analyst at Sandler O'Neill + Partners.

Tomczyk echoed that sentiment and said the rising price of oil was a growing concern among traders.

RETAIL RETURNS

TD Ameritrade is the top U.S. discount broker by trading volume and is often seen as a proxy for the mood of Main Street investors. It releases its trading figures for February later this month, as do rivals Charles Schwab Corp and E*Trade Financial.

David Chiaverini, an analyst at BMO Capital Markets, said that based on his checks with private brokers, he expects that daily average revenue trades (DARTs)- a closely watched industry measure - at the discount brokers rose between 10 and 15 percent in February from January.

"We believe the recent strong market performance coupled with the return to lower volatility levels has retail investors starting to wade back into the markets, and this should benefit discount broker trading commissions," he said in a research note.

BMO said it now expect DARTs to rise by 10 percent in the first quarter over the fourth quarter from an earlier estimate of a 3 percent rise.

Last year, trading fees made up over 40 percent of TD Ameritrade's revenues. They made up nearly 30 percent of revenues at E*Trade, and around 20 percent at Schwab.

BMO raised its estimates for earnings per share in the current quarter for TD Ameritrade by 2 cents to 27 cents, and by a penny for E*Trade and Schwab to 6 cents and 14 cents, respectively.

Repetto said he too expects DARTs at the discount brokerages to have risen 10 to 15 percent over January.

Mutual fund flows also suggest individual investors were more active in February.

U.S. equity funds, not including ETFs, which tend to be used more by institutional investors than retail investors, had $2.59 billion in inflows from the start of the month to February 22, according to Lipper, a unit of Thomson Reuters.

That compares to outflows of $1.7 billion in January and outflows of $34.1 billion in December.

(Reporting By John McCrank; Editing by Walden Siew, Dave Zimmerman)

By John McCrank

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TD AMERITRADE HOLDING CORP
04/21 TD AMERITRADE HOLDING CORP : Entry into a Material Definitive Agreement, Termina..
04/19 TD AMERITRADE : Trump pick for Commerce's No. 2 withdraws, blames conflicts
04/19 TD AMERITRADE : affirms outlook for year after commission cut
04/19 TD AMERITRADE : posts 2Q profit
04/19 TD AMERITRADE HOLDING CORP : Results of Operations and Financial Condition, Fina..
04/19 TD AMERITRADE HOLDING CORPORATION (N : AMTD) Files An 8-K Results of Operations ..
04/19 TD AMERITRADE : Reports Record Quarterly Revenue
04/14TD AMERITRADE HOLDING CORP. : half-yearly earnings release
04/10 TD AMERITRADE INVESTOR MOVEMENT INDE : IMX Sets New Record High For Second Conse..
04/05 TD AMERITRADE : to Host Earnings Conference Call
More news
Sector news : Investment Banking
04/22 Wall Street gears up for busiest earnings week in years
04/21DJMORGAN STANLEY : Klaus Kleinfeld to Exit Morgan Stanley
04/21DJGOLDMAN SACHS : Goes Beyond Annual Review With Real-Time Employee Ratings -- Upd..
04/21DJGOLDMAN SACHS : Goes Beyond Annual Review With Real-Time Employee Ratings
04/20DJMORGAN STANLEY : Treasurer Celeste Mellet Brown to Leave for Fannie Mae, Sources..
More sector news : Investment Banking
News from SeekingAlpha
04/19 TD Ameritrade Holding's (AMTD) CEO Tim Hockey on Q2 2017 Results - Earnings C..
04/19 Ameritrade +1% post-earnings; sees delayed close for Scottrade deal
04/19 TD Ameritrade Holding Corporation 2017 Q4 - Results - Earnings Call Slides
04/18 Notable earnings before Wednesday?s open
04/04 Can TD Ameritrade Survive The Price War?
Advertisement
Financials ($)
Sales 2017 3 534 M
EBIT 2017 1 427 M
Net income 2017 866 M
Debt 2017 -
Yield 2017 1,90%
P/E ratio 2017 23,14
P/E ratio 2018 19,60
Capi. / Sales 2017 5,66x
Capi. / Sales 2018 5,28x
Capitalization 20 020 M
More Financials
Chart TD AMERITRADE HOLDING CORP
Duration : Period :
TD Ameritrade Holding Corp Technical Analysis Chart | AMTD | US87236Y1082 | 4-Traders
Full-screen chart
Technical analysis trends TD AMERITRADE HOL...
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 44,1 $
Spread / Average Target 16%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Timothy D. Hockey President, Chief Executive Officer & Director
Joe Hugh Moglia Chairman
Jeffrey Goeser Director-Finance & Investor Relations
Stephen J. Boyle Chief Financial Officer & Executive Vice President
Vijay Sankaran Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TD AMERITRADE HOLDING ..-11.33%20 020
CHINA CINDA ASSET MANA..3.57%29 944
HAITONG SECURITIES COM..-6.67%22 757
NATIONAL COMMERCIAL BA..--.--%20 428
EVERBRIGHT SECURITIES ..-6.69%9 518
INDUSTRIAL SECURITIES ..-1.05%7 364
More Results