E*Trade Will Take on Brokerage Space Longer

After exploring a number of strategic alternatives, E*Trade Financial Corporation (NASDAQ:ETFC) announced that it will remain independent.

On Thursday, E*Trade’s board of directors made the decision to withdraw from selling the company. It had been working with Goldman Sachs Group Inc (NYSE:GS) as their financial adviser and the investment bank had recommended they cease the selling process.

E*Trade started reviewing its options in August after its largest investor, the Citadel Investment Group LLC, went to the board and suggested a sale. The company had received responses from a number of buyers, including TD Ameritrade Holding Corp. (NASDAQ:AMTD), but they didn’t receive a strong interest.

In a corporate press release, the company said it will look ahead:

“Following this review by our Board, the management team will continue to execute on our strategy designed to create value for both our stockholders and our customers,” said Steven Freiberg, Chief Executive Officer and Interim Chairman of E*TRADE. “We will remain focused on delivering the best investing experience to our customers, strengthening our brokerage business, continuing to improve the performance of our loan portfolio and enhancing our franchise.”

Here’s how brokerage stocks are trading:

  • E*TRADE Financial Corporation (NASDAQ:ETFC): The shares recently traded at $9.09, down $0.39, or 4.11%. Its market capitalization is $2.58 billion. They have traded in a 52-week range of $7.74 to $18.13. Volume today was 26,173,998 shares versus a 3-month average volume of 6,793,790 shares. The company’s trailing P/E is 17.82, while trailing earnings are $0.51 per share. About the company: E*TRADE Financial Corporation provides online brokerage and related products and services primarily to individual retail investors. The Company’s products and services include investor-focused banking, primarily sweep deposits and savings products, and asset gathering. Get the most recent company news and stock data here >>
  • TD AMERITRADE Holding Corporation (NASDAQ:AMTD): The shares recently traded at $17.13, up $0.31, or 1.84%. Its market capitalization is $9.63 billion. They have traded in a 52-week range of $13.43 to $22.90. Volume today was 4,594,835 shares versus a 3-month average volume of 5,284,230 shares. The company’s trailing P/E is 15.43, while trailing earnings are $1.11 per share. The company pays a dividend of $0.24 per share for a dividend yield of 1.50%. About the company: TD Ameritrade Holding Corporation provides online brokerage services. The Company, through its private client and institutional client divisions, provides tiered levels of brokerage products and services tailored to meet the varying investing, trading, and execution needs of self-directed individual investors, financial institutions, and corporations. Get the most recent company news and stock data here >>
  • Charles Schwab Corp. (NYSE:SCHW): The shares recently traded at $12.36, up $0.26, or 2.15%. Its market capitalization is $14.95 billion. They have traded in a 52-week range of $10.56 to $19.69. Volume today was 7,155,967 shares versus a 3-month average volume of 16,683,700 shares. The company’s trailing P/E is 18.42, while trailing earnings are $0.67 per share. The company pays a dividend of $0.24 per share for a dividend yield of 2.00%. About the company: The Charles Schwab Corporation provides a variety of financial services to individual investors, independent investment managers, retirement plans, and institutions. The Company provides its clients with securities brokerage, banking, and related financial services through offices in the United States, Puerto Rico, and the United Kingdom. Get the most recent company news and stock data here >>

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