TD Ameritrade Holding (AMTD) stock: what's the sentiment?

1:04 am ET, 22 Oct 2018

TD Ameritrade Holding Corporation (AMTD) shares are trading at $50.93. The company is announcing its quarterly earnings results on Monday after the market close. What's driving AMTD stock price? What's AMTD stock price forecast?

TD Ameritrade provides security brokerage and other technology-based financial services.  The Company has been able to benefit from synergies with Scottrade after the acquisition. It saved around $212 million through cost-cutting.

Investors are showing interest in the company because of strong expected earnings growth. On the other hand, some investors worry about the recent lawsuit against some retail brokerages, including Ameritrade, that accept payment for order flow. Last quarter’s revenue rose 48% to $1.38 billion and earnings per share came at $0.89 compared to $0.48 for the same period last year.

The fourth-quarter fiscal year 2018 results will be released after market close on October 22, 2018. Analysts expect the company to earn $0.88 per share on revenue of $1.38 billion. The Company beat analyst estimates in the previous four quarters.

What is the sentiment towards the AMTD stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is neutral. 

Over the last month, TD Ameritrade Holding Corporation (AMTD) returned -7.61%.

TD Ameritrade Holding Corporation (AMTD) forward P/E ratio is 13.29, and it’s high compared to its industry peers’ P/E ratios.

TD Ameritrade Holding Corporation (AMTD) average analyst price target ($67.90) is 34.38% above its current price ($50.53).

For the latest price and information on TD Ameritrade Holding Corporation, please visit Finstead and search for "AMTD price" or "AMTD news".

TD Ameritrade Holding Corporation (AMTD) Stock Guide

Updated at: 10:59 am ET, 17 Sep 2020

Before we start: if you're looking for AMTD stock price, you can quickly find it out by visiting Finny and typing "AMTD quote". If you're looking for a quick scoop on AMTD stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AMTD". You'll get all this info in one place. Or you can just type "AMTD news" to get the latest stock news.

Looking to buy or sell TD Ameritrade Holding Corporation (AMTD)? Interested in getting the full scoop on AMTD, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AMTD stock guide, we'll address key questions about AMTD, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AMTD earnings?
2. What is AMTD dividend?
3. What is AMTD dividend yield?
4. What is AMTD stock forecast (i.e., prediction)?
5. AMTD buy or sell? What is AMTD Finny Score?
6. What are the reasons to buy AMTD? Why should I buy AMTD stock?
7. What are the reasons to sell AMTD? Why should I sell AMTD stock?
8. What are AMTD key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AMTD earnings?

AMTD trailing 12-month earnings per share (EPS) is $3.57.

2. What is AMTD dividend?

AMTD forward dividend is $1.24.

3. What is AMTD dividend yield?

AMTD forward dividend yield is 3.23%.

Analyst Predictions

4. What is AMTD stock forecast (i.e., prediction)?

Based on AMTD analyst price targets, AMTD stock forecast is $38.62 (for a year from now). That means the average analyst price target for AMTD stock is $38.62. The prediction is based on 18 analyst estimates.

The low price target for AMTD is $32.00, while the high price target is $46.00.

AMTD analyst rating is Buy.

Analysis

5. AMTD buy or sell? What is AMTD Finny Score?

#{finnyScore:73}Our quantitative analysis shows 8 reasons to buy and 3 reasons to sell AMTD, resulting in Finny Score of 73.

6. What are the reasons to buy AMTD? Why should I buy AMTD stock?

Here are the reasons to buy AMTD stock:

  • Rising interest rates, longer runway for investment product penetration, a leading asset gathering growth rate, and capital returns are all reasons to be positive on TD Ameritrade.
  • The Scottrade acquisition has been a good deal for TD, given the synergies between the two companies.
  • TD Ameritrade may be able to have its cake and eat it too, if it maintains a leading position among active traders and gains further traction with its investment product fees push.
  • AMTD quarterly revenue growth was 7.40%, higher than the industry and sector average revenue growth (0.74% and 1.27%, respectively). See AMTD revenue growth chart.
  • AMTD profitability is improving. The YoY profit margin change was 3.33 percentage points. See AMTD profitability chart.
  • AMTD forward dividend yield is 3.23%, higher than the industry (0.61%) and sector (1.11%) forward dividend yields. See AMTD forward dividend chart.
  • AMTD forward P/E ratio is 14.60, which is low compared to its industry peers’ P/E ratios. See AMTD forward P/E ratio chart.
  • AMTD Price/Sales ratio is 3.61, which is low compared to its industry peers’ P/S ratios. See AMTD forward Price/Sales ratio chart.
  • AMTD average analyst rating is Buy. See AMTD analyst rating chart.
  • AMTD cash to debt ratio is 5.27, higher than the average industry (0.18) and sector (0.18) cash to debt ratio. See AMTD cash to debt chart.
  • AMTD Enterprise Value/Revenue multiple is 0.57, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See AMTD Enterprise Value/Revenue chart.

7. What are the reasons to sell AMTD? Why should I sell AMTD stock?

Let's look at the reasons to sell AMTD stock (i.e., the bear case):

  • There is still uncertainty on the timing of a return to higher net interest margins, and a weakening in U.S. economic fundamentals and flattening of the interest-rate yield curve could further delay this earnings growth catalyst.
  • If the United States was to enter into a recession soon after interest rates normalize, the company may not have enough time to fully benefit from locking higher rates into its portfolio.
  • TD Ameritrade needs to achieve most of its planned synergy savings with Scottrade, otherwise the deal was value destructive, as Scottrade is currently unprofitable.
  • With Charles Schwab dropping stock-trading fees to 0, the pressure builds on for TD Ameritrade.
  • AMTD average analyst price target ($38.62) is below its current price ($38.69). See AMTD price target chart.
  • AMTD short share of float is 5.52%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See AMTD short share of float chart.
  • AMTD short interest (days to cover the shorts) ratio is 6.73. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AMTD short interest ratio chart.

Key Stats

8. What are AMTD key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AMTD:

Metrics AMTD
Price $37.84
Average Price Target / Upside $38.62 / 2.05%
Average Analyst Rating Buy
Forward Dividend Yield 3.23%
Industry Capital Markets
Sector Financial Services
Number of Employees 9,314
Market Cap $20.93B
Forward P/E Ratio 14.60
Price/Book Ratio 3.61
Revenue (TTM) $5.79B
YoY Quarterly Revenue Growth 7.40%
Profit Margin 33.55%

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