Share Repurchase Plan Announced by E*TRADE Financial (ETFC)

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E*TRADE Financial (NASDAQ:ETFC) declared that its Board of Directors has authorized a share repurchase program, which allows the company to buyback $1.00 billion in shares on Thursday, October 18th. This buyback authorization allows 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 leadership believes its shares are undervalued.

Shares of E*TRADE Financial stock opened at $48.36 on Tuesday. E*TRADE Financial has a 12-month low of $42.56 and a 12-month high of $66.46. The stock has a market capitalization of $12.95 billion, a PE ratio of 22.08, a PEG ratio of 0.82 and a beta of 1.09. The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 0.32.

E*TRADE Financial (NASDAQ:ETFC) last announced its quarterly earnings results on Thursday, October 18th. The financial services provider reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $710.62 million. During the same period in the prior year, the firm posted $0.49 earnings per share. The company’s revenue for the quarter was up 20.2% on a year-over-year basis. On average, analysts anticipate that E*TRADE Financial will post 3.73 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 15th. Investors of record on Tuesday, October 30th will be paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 1.16%. The ex-dividend date is Monday, October 29th.

A number of brokerages have weighed in on ETFC. Morgan Stanley cut their target price on shares of E*TRADE Financial from $78.00 to $74.00 and set an “overweight” rating for the company in a research report on Wednesday, July 25th. Raymond James lowered their price target on shares of E*TRADE Financial from $77.00 to $75.00 and set a “strong-buy” rating on the stock in a report on Friday, July 13th. Zacks Investment Research raised shares of E*TRADE Financial from a “hold” rating to a “buy” rating and set a $67.00 price target on the stock in a report on Monday, July 16th. Barclays lowered their price target on shares of E*TRADE Financial from $65.00 to $60.00 and set an “overweight” rating on the stock in a report on Friday. Finally, ValuEngine downgraded shares of E*TRADE Financial from a “buy” rating to a “hold” rating in a report on Friday, July 20th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the stock. E*TRADE Financial presently has a consensus rating of “Buy” and an average price target of $66.44.

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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