Financial Engines Inc
What Analysts Think about T. Rowe Price
Ratings for T. Rowe Price Of the 16 analysts covering T. Rowe Price (TROW) in February and March 2018, two have recommended “strong buy,” three have recommended “buy,” nine have recommended “hold,” and two have recommended “strong sell.” In January 2018, two recommended “strong buy,” two recommended “buy,” nine recommended “hold,” one recommended “sell,” and two recommended “strong sell.” Ratings for peers Of the six analysts covering […]
How Could T. Rowe Price’s Valuation Recover?
Price-to-earnings ratio T. Rowe Price (TROW) has an NTM ( next-12-month) PE (price-to-earnings) ratio of 15.0x. Competitors are valued lower, with an average ratio of 15.7x. Peers Franklin Resources (BEN), Financial Engines (FNGN), and BlackRock (BLK) have NTM PE ratios of 11.7x, 17.3x, and 18.2x, respectively. T. Rowe Price’s valuation could fall further, as the company’s […]
T. Rowe Price’s Views on Global Markets in 2018
Strong outlook T. Rowe Price (TROW) expects global markets to be positive in 2018, in both emerging and developed economies. Economies’ movement towards digitization and innovation is expected to help businesses. In 2018, T. Rowe Price expects global equity markets to be supported by improving business models, technological developments, and shifting consumer preferences. Technology giants’ valuation is increasing […]
How T. Rowe Price Aims to Tackle Challenges
Ways to tackle hurdles While T. Rowe Price (TROW) expects to encounter certain long-term challenges, it has identified some measures it may take to tackle them. The company plans to focus on pricing as well as long-term goals. T. Rowe Price has extended its investment strategies, receiving a positive response from clients. To streamline processes, […]
What Are T. Rowe Price’s Plans for the Future?
Outlook Based on its investor presentation on February 21, 2018, T. Rowe Price’s (TROW) current vision is more or less the same as its vision in 2017. The company continues to focus on becoming a leader in active investment management. It also plans to generate and deliver long-term value to customers. T. Rowe Price is […]
These Factors Affected T. Rowe Price’s Assets under Management
Total assets under management As of December 31, 2017, T. Rowe Price (TROW) had total AUM (assets under management) of $991.1 billion, of which the company’s US mutual funds contributed $606.3 billion and other investment products contributed $384.8 billion. In 2017, the company’s total AUM appreciated by $180.3 billion. In 2017, T. Rowe Price’s US mutual funds appreciated […]
What’s T. Rowe Price’s Outlook on Emerging Markets?
Favorable outlook T. Rowe Price (TROW) believes that emerging markets may offer significant investment opportunities after their strong momentum in 2017. Because of improving political and economic situations in some developing countries, many global emerging markets can be looked upon for investments. In 2017, emerging markets saw higher economic growth than developed markets. This trend is expected […]
T. Rowe Price’s Operating Expenses Increased: Here’s Why
Operating expenses Between 2016 and 2017, T. Rowe Price’s (TROW) operating expenses rose 7.8% to $2.7 billion from $2.5 billion in 2016, and its compensation and related costs rose 11.4% to $1.7 billion from $1.5 billion. The increase was mainly due to higher salaries and related benefits and hiring employees. The company incurred compensation and related costs of $446.3 million […]
Behind T. Rowe Price’s Net Revenue
Components T. Rowe Price’s (TROW) net revenue comprises three components: investment advisory fees, distribution and servicing fees, and administrative fees. The company’s net revenue rose 13.5% to $4.8 billion in 2017 from $4.2 billion in 2016. Between 2016 and 2017, the company’s investment advisory fees rose 15% from $3.7 billion to $4.3 billion, due to its average […]
T. Rowe Price Announces Leadership Changes
Assets under management as of January 2018 T. Rowe Price (TROW) had total AUM (assets under management) of $1.1 trillion as of January 31, 2018, compared with $991 billion in December 2017. Of the $1.1 trillion, the company’s sponsored US mutual funds contributed $637 billion, and other investment portfolios contributed $410 billion. Of the sponsored mutual […]
A Look at T. Rowe Price’s Assets under Management
Asset classes In its investor presentation on February 21, 2018, T. Rowe Price (TROW) stated that its core business is helped by the allocation of its AUM (assets under management) in different asset classes and its strong client base. However, the company also believes that targeting new opportunities is crucial for its core business. Of its total AUM, […]
T. Rowe Price Beats Analysts’ Expectations
In this series, we’ll look at T. Rowe Price’s outlook on emerging and global markets, 4Q17 numbers, and future strategies.
Raymond James Financial Compared to Its Peers
Raymond James Financial (RJF) generated a return of 4.8% in the last three months and 17.6% in the last year.
Analysts ‘Neutral’ to ‘Positive’ on Raymond James Financial
Analysts covering Raymond James Financials (RJF) have given RJF a mean price target of $109.14, implying a 15.7% rise from its current level of $94.30.
Raymond James Financial’s Steady Dividend Policy
Raymond James Financial (RJF) announced a dividend of $0.25 per share for 1Q18 from $0.22 in 3Q16. The dividend yield stands at 1.1%.
How Raymond James Financial Is Managing Its Expenses
Raymond James Financial’s (RJF) non-interest expenses increased 10% on a YoY (year-over-year) basis to $1.4 billion.
Raymond James Financial’s Most Profitable Divisions
Raymond James Financial’s (RJF) Private Client Group reported fiscal 1Q18 revenues of $1.2 billion, a 19% rise over fiscal 1Q17 and a 5% rise over 4Q17.
Raymond James Financial: Fall in Trading Revenues Continues
Raymond James Financial’s (RJF) fiscal 1Q18 net revenues of $216.7 million were 7% lower than 1Q17 and 18% lower than 4Q17.
Analysts’ Post-1Q18 Views on TD Ameritrade
Ratings for AMTD Of the 19 analysts covering TD Ameritrade (AMTD), seven have recommended “strong buy,” three have recommended “buy,” eight have recommended “hold,” and one has recommended “strong sell” in January 2018. In December 2017, six analysts recommended “strong buy,” three recommended “buy,” nine recommended “hold,” and one recommended “strong sell.” There were no “sell” recommendations. […]
What Could Improve TD Ameritrade’s Valuation
Lower valuation TD Ameritrade (AMTD) has an NTM (next-12-month) PE (price-to-earnings) ratio of 18.4x, trading at a discount to peers’ average of 20.1x. Peers Financial Engines (FNGN), Raymond James Financial (RJF), and CBOE Global Markets (CBOE) have NTM PE ratios of 17.7x, 14.3x, and 28.3x, respectively. TD Ameritrade could recover from its discounted valuation with quarterly payouts and […]
TD Ameritrade’s Net Interest Revenue and Operating Expenses
Total operating expenses In 1Q18, TD Ameritrade (AMTD) incurred total operating expenses of $921 million, compared with $506 million in fiscal 1Q17. For its acquisition of Scottrade, the company incurred expenses of $179 million. These expenses comprised professional service expenses of $8 million, employment expenses of $81 million, and other operating expenses of $85 million. TD Ameritrade […]
A Look at TD Ameritrade’s Net Revenue in Fiscal 1Q18
Net revenue TD Ameritrade’s (AMTD) net revenue comprises transaction-based, asset-based, and other revenue. The company’s transaction-based revenue, which consists of commissions and transaction fees, amounted to $440 million in fiscal 1Q18. According to the company, its transaction revenue surpassed estimates thanks to favorable momentum in trading volumes. TD Ameritrade’s commission rates stood at $7.54 per trade—within […]
TD Ameritrade Reports Strong Results, Beats Revenue Estimates
In 1Q18, TD Ameritrade (AMTD) reported strong results, with EPS (earnings per share) of $0.52—in line with Wall Street analysts’ estimates.
Interactive Brokers Group: What Are Analysts’ Views?
Analysts’ ratings Of the six analysts tracking Interactive Brokers Group (IBKR) in December 2017, four have recommended “hold,” one has recommended “strong sell,” and one has recommended “strong buy.” The ratings were the same in October and November. Of the seven analysts tracking IBKR in September 2017, four recommended “hold,” one recommended “strong sell,” and two recommended “strong buy.” […]
Understanding Interactive Brokers Group’s Higher Valuation
Higher valuation multiple Interactive Brokers Group’s (IBKR) next-12-month PE (price-to-earnings) ratio is 36.0x, higher than the peer average of 17.0x. Peers Financial Engines (FNGN), Raymond James Financial (RJF), and LPL Financial Holdings (LPLA) have ratios of 19.6x, 14.6x, and 16.9x, respectively. Interactive Brokers’ higher valuation may be due to its strong 3Q17 results. The company’s commissions, net interest income, […]
What Dividends Could Interactive Brokers Declare in 2018?
Expectations for 2018 Interactive Brokers Group (IBKR) is expected to declare a dividend per share of $0.40 in 2018, with a quarterly dividend of $0.10 per share. The company has been declaring quarterly dividends of $0.10 per share over the past several quarters. Whereas Interactive Brokers has a last-12-month dividend yield of 0.67%, peers (XLF) LPL […]
What Happened with Interactive Brokers’ Market-Making Business
Loss witnessed Interactive Brokers Group’s (IBKR) market-making business saw pre-tax income of -$35 million in the first three quarters of 2017, compared with $32 million in the same period of the prior year, primarily due to lower net revenue. Whereas the division’s trading gains fell from $124 million to $26 million, its other income rose to $14 […]
Understanding Interactive Brokers’ Electronic Brokerage Division
Total net revenue Interactive Brokers Group’s (IBKR) electronic brokerage division’s total net revenue rose to $1.0 billion in the first three quarters of 2017 from $945 million in the same period of the prior year, supported by commissions and interest income and offset by a fall in other income. The electronic brokerage division’s income comprises interest, commissions, and other […]
Interactive Brokers Commences Bitcoin Futures Trading
Market-making activities Interactive Brokers Group (IBKR) has decided to close its options market-making activities. However, the brokerage giant will be continuing its trading activities related to stocks and other instruments. Whereas the company’s options market-making business received a positive response at the time of initiation, it then took a downturn, prompting management to close it. […]
Behind Interactive Brokers Group’s Non-Interest Expenses
Non-interest expenses rise Interactive Brokers Group’s (IBKR) non-interest expenses rose to $502 million in the first three quarters of 2017 from $470 million in the same period of the prior year. This rise was due to higher general and administrative expenses arising from the closure of the company’s options-market-making business and higher advertising expenses. Interactive Brokers incurred […]
Analyzing Interactive Brokers Group’s Total Net Revenue
On December 10, 2017, Interactive Brokers made available an option to trade bitcoin futures. In this series, we’ll look at this development and other company news.