TD Ameritrade Holding Corporation (NYSE:AMTD) Performing Well On Its Assets – Researchers Expect Better Earnings

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By Martin Foley on August 28, 2014 Company, Financial

TD Ameritrade Holding Corporation (NYSE:AMTD) has been struggling hard to keep its assets intact and gain some momentum in its performance metrics.

The new assets of TD Ameritrade Holding Corporation (NYSE:AMTD) increased by 24.1 percent and reached to $13.4 billion. Moreover, the net assets of the company over the last 9 months increased by 1.5 percent and reached to $40 billion. The management of TD Ameritrade Holding Corporation (NYSE:AMTD) is of the opinion that the company can see huge growth if it continues to perform positively in the fourth quarter of the year 2014. If successful, the company will double its yearly assets sixth time in a row.

TD Ameritrade Holding Corporation (NYSE:AMTD) is also quite confident about its advisory platform. According to a report released by McKinsey, almost 60 percent of the total flows into the United States Wealth Management market are expect to enter either through the independent advisors or the discount brokers. The report further suggested that these metrics will be applicable for the next four years.

Market analysts are of the opinion that TD Ameritrade Holding Corporation (NYSE:AMTD) is well equipped to benefit from the reported trend of the industry.

The company has seen a huge growth in its client transactions since the first fiscal quarter of the year 2013 due to the optimistic equity markets’ ratings and the bullish involvement of investors. This trend was in place during the nine fiscal months of the year 2014; the company saw an increase of 17.3 percent in the client trades, on yearly basis; the transactions reached to a total of 435, 123 for the year 2014.

Moreover, market researchers are of the view that the company will see an increase in its trading volume in the near future due to the improvements in the equity sectors of the market and the introduction of innovative trading communities.

However, some researchers are concerned about TD Ameritrade Holding Corporation’s (NYSE:AMTD) growth due to the decreased interest margins, strict regulations in the respective industry and the limits placed by the government on the geographical expansion plans of the companies.

Market analysts are expecting an EPS (earnings per share) of $1.40 for the year 2014 and an EPS of $1.62 for the year 2015.

TD Ameritrade Holding Corporation (NYSE:AMTD) currently has a #3 Zacks rank on its stocks with a consensus rating of ‘Hold’.

TD Ameritrade Holding Corporation (NYSE:AMTD), on the last trading day, August 27, 2014, started its stocks at a price of $33.60 and closed at a price of $33.17, after hitting the highest figures of $33.69. The intraday range for the company’s stocks was recorded to be from $33.09 to $33.69.

The company has a market capitalization of $18.37 billion with a price to earnings ratio of 23.74. As far as the dividend yield of the company’s stocks is concerned, the numbers are recorded to be around 1.45 percent. TD Ameritrade Holding Corporation (NYSE:AMTD) has a target price of $35.56 on its stocks with a beta of 1.37.