TD Ameritrade Holding CorporationNASDAQ
Thu, Oct. 20, 11:59 AM
- According to Rob Sedran and team at CIBC, TD Bank (NYSE:TD) has the necessary regulatory capital to inject about $1.5B into its minority-owned TD Ameritrade (NASDAQ:AMTD) should it pursue a purchase of rival Scottrade.
- Scottrade has reportedly put itself on the block at somewhere in the $4B range, and a report today says TD and AMTD have teamed up to put in a joint bid.
- TD owns 42% of Ameritrade, and Sedran believes the lender would want to maintain that level in the event of a Scottrade purchase.
- It would be "strategically consistent" for TD to be involved in the buy, says Sedran, noting Scottrade's banking assets could be easily absorbed the direct brokerage is a business the lender knows well and with whom it has a strong partner, and in which material synergies could be expected.
Thu, Oct. 13, 7:36 AM
- Catching an upgrade to Buy from Neutral is TD Ameritrade (NASDAQ:AMTD), with analyst Michael Carrier seeing upside from higher interest rates, and other factors like M&A (rumors of Scottrade interest) and competitive pricing. The $43 price target is up from $33, and suggests another 20% upside from current levels.
- Also upgraded is Schwab (NYSE:SCHW).
- Downgraded to Neutral from Buy is E*Trade (NASDAQ:ETFC).
Fri, Sep. 30, 11:20 AM
- The big rise in TD Ameritrade (AMTD +2.2%) of late "amply discounts" the most likely accretion scenarios, says Citi's William Katz, but leaves no room for a bad outcome such as E*Trade or a third party winning the bidding for Scottrade. "We are inclined to fade the rally, particularly as rate expectations remain largely muted."
- In addition to rumors about an Ameritrade purchase of Scottrade, there's also chatter about an Ameritrade/E*Trade tie-up. Of the two, Katz thinks a deal with Scottrade is more likely given its smaller size and more manageable revenue "dis-synergies" and cost reductions.
Fri, Sep. 30, 8:33 AM
- TD Ameritrade (NASDAQ:AMTD) had a big move yesterday after Bloomberg reported Scottrade has put itself on the block, with Ameritrade as a possible suitor.
- Don't forget possible interest from Schwab (NYSE:SCHW) and E*Trade (NASDAQ:ETFC), says Wells Fargo, which believes a deal would be accretive by double-digit levels.
- That said, Ameritrade could be the most logical buyer, given that E*Trade just closed on a purchase (OptionsHouse) and Schwab has sought to place less emphasis on trading.
- Wells keeps its Outperform rating on E*Trade and Market Perform ratings on Schwab and Ameritrade.
Thu, Sep. 29, 1:09 PM
- A Bloomberg story last night said Scottrade is working with an adviser on a sale that would value the company in the $4B range.
- Among those with interest is TD Ameritrade (AMTD +5.2%), according to the story. With the industry struggling with sluggish trading volumes, low interest rates, and lower-cost rivals, a purchase would give Ameritrade the opportunity to profit by eliminating redundant back-office systems while bringing in new customers, says Bloomberg's David Ritter.
Thu, Sep. 29, 1:02 PM
Wed, Sep. 28, 6:01 PM
- Online brokerage Scottrade Financial Services is working with advisers on a possible sale that could interest rivals including TD Ameritrade (AMTD +0.6%).
- The privately held Scottrade could be valued at $4B in a deal, sources tell Bloomberg.
- Scottrade was among the discount brokerage pioneers, and operates through four different units including the retail brokerage as well as investment advisory and banking services.
Mon, Sep. 26, 1:03 PM
- The industry is facing three disruptive threats, says analyst Michael Cyprys: Competition for customer assets/activity, a growing regulatory burden, and technologies that can transform business models.
- Advice is the key, he says, and moving into this segment opens up a $22T wealth pool for the brokers.
- His favorite is Charles Schwab (NYSE:SCHW), as it has the most diversified revenue streams and most EPS upside from current rates. He starts the stock at Overweight with a $37 price target.
- His least favorite is LPL Financial (NASDAQ:LPLA), thanks to a lack of clarity on regulatory issues and the business model.
- E*Trade (NASDAQ:ETFC) and Ameritrade (NASDAQ:AMTD) are Equal Weight.
Wed, Sep. 21, 10:14 AM
- Credit Suisse had been restricted from coverage due its role as an advisor to E*Trade (NASDAQ:ETFC) on a recent acquisition (OptionsHouse).
- Picking coverage back up with an Outperform rating and hiked price target (to $33 from $30), analyst Christian Bolu says the company "is at another critical inflection point," after the lack of core business growth led to the firing of the CEO last week.
- New management has promised 2-3% incremental growth, or it will consider a sale of the company, notes Bolu.
- Mulling a takeout by TD Ameritrade (NASDAQ:AMTD) or Schwab (NYSE:SCHW), Bolu says it would likely be at little to no premium to the current stock price as there's not much strategic rationale, and there are likely sizable revenue dis-synergies.
- Bolu nevertheless lifts his 2018 EPS estimate to $1.90 from $1.80 thanks to the OptionsHouse acquisition. The $33 price target is based on 15x long-term earnings power of $2 per share, plus about $2.60 per share of the deferred tax asset.
Mon, Sep. 12, 12:56 PM| Mon, Sep. 12, 12:56 PM
Tue, Aug. 9, 9:19 AM
Tue, Aug. 2, 9:06 AM
Tue, Jul. 19, 8:07 AM
- Q2 net income of $203M or $0.39 per share (after backing out a $33M, or $0.06 of a positive tax adjustment) vs. $197M and $0.36 one year ago.
- Net new client assets of about $14B up 16% Y/Y.
- Average client trades per day of about 462K, an activity rate of 6.8%.
- Interest-rate sensitive assets of $113B up 10% Y/Y. Total client assets of $736B up 5%.
- 1.7M shares bought back during quarter.
- Conference call at 8:30 ET
- Previously: TD Ameritrade beats by $0.01, beats on revenue (July 19)
- AMTD +1.4% premarket
Tue, Jul. 19, 7:58 AM
Mon, Jul. 18, 5:30 PM
Tue, Jun. 28, 10:05 AM