Nomura provides weak forecast for Charles Schwab Corp (NYSE:SCHW) and two other brokers

  on Nov 27,2012 Posted in Business News ,Finance
 
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For three online brokerage firms including Charles Schwab Corp (NYSE:SCHW), TD Ameritrade Holding Corp. (NYSE:AMTD) and E TRADE Financial Corporation (NASDAQ:ETFC), Nomura Securities analysts tweaked their projections and cited that despite solid stock returns, the online retail business continued to stay weak. They anticipate that it will continue to be sluggish as December is historically a weak month for the industry.

The analysts told clients in a research report that the daily average revenue trades over the past three Decembers for both Ameritrade and E-Trade have seen fall of 10% on average from November levels. Nomura’s report also cited that despite a recent growth in reported consumer confidence, retail investors are still pulling money out of equity mutual funds and put it into bond funds with tiny yields as their risk appetite remains low.

One of the most critical factors in measuring the performance of a company is its Return on Assets ratio, which is an indicator of how profitable a company is relative to its total assets. Charles Schwab Corp (NYSE:SCHW) recently had ROA ratio of 0.80% while its market capitalization of $16.77 billion.

Previous month, Charles Schwab’s stock price volatility was 1.92%. In its share capital SCHW has 1.28 billion outstanding shares among them 1.08 billion shares have been floated in market exchange. SCHW’s stock institutional ownership remained 75.76% while insider ownership included 0.29%.

The stock is ahead of its 52weeks low with +25.10% and lagging behind from its 52 weeks high price with -14.20%. Company’s beta coefficient included 1.30. Beta factor evaluates the amount of market risk associated with market trade.

SCHW’s stock traded with a starting price of $13.13 and throughout the trading session climbed at a high of $13.23 and later when day-trade ended the stock finally slid -0.60% to $13.15 with a relative volume of 8.22 million shares.

Its competitor E TRADE Financial Corporation (NASDAQ:ETFC) shares opened the session at $8.12 advanced 3.50% to settle at $8.43 with a relative trading volume of 3.40 million shares and Morgan Stanley (NYSE:MS) shares opened the session at $16.32 jumped 1.10% to settle at $16.61 with a relative trading volume of 13.22 million shares.

 



 

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