Schwab's April DATs Rise Y/Y - Analyst Blog
May 15 2013 - 2:37PM
Zacks
In its monthly market activity report for Apr 2013, The
Charles Schwab Corporation (SCHW) reported Daily Average
Trades (DATs) of 470,000. The DATs were up 2% from 458,900 in the
year-ago month but down 3% from 486,000 in the prior month.
Total client assets stood at $2.11 trillion, improving 15% from Apr
2012 and 1% from Mar 2013. However, Schwab’s net new assets –
bought by the new and existing clients – totaled $22 million,
substantially lower than $1 billion reported in the year-ago month
and $13 billion in the prior month. Also, this included a $7.3
billion outflow and $2.6 billion inflow related to mutual fund
clearing services client.
Schwab opened 96,000 new brokerage accounts in the reported month,
10% higher than the Apr 2012 level and 17% higher than Mar 2013
level. The company’s active brokerage accounts totaled 8.91
million, up 3% year over year and 1% sequentially.
Moreover, clients’ banking accounts elevated 11% year over year to
895,000 and inched up 1% over the prior-month. Also, the company
had 1.59 million corporate retirement plan participants, improving
5% from Feb 2012 and 1% from Mar 2013.
The rising DATs and new brokerage accounts are expected to be
beneficial for Schwab. Yet, fluctuating interest rates and lower
trading activities are anticipated to adversely affect the
company’s financials going forward.
Moreover, Schwab’s capital intensity in comparison with other
investment brokers remains a matter of concern. However, its focus
on low-cost capital is expected to help the company achieve better
results in the subsequent quarters.
Schwab currently carries a Zacks Rank #3 (Hold). Investment brokers
that are worth considering include LPL Financial Holdings
Inc. (LPLA), GAIN Capital Holdings, Inc.
(GCAP) and Piper Jaffray Companies (PJC). LPL
Financial carries a Zacks Rank #1 (Strong Buy), while GAIN Capital
and Piper Jaffrey hold a Zacks Rank #2 (Buy).
GAIN CAP HLDGS (GCAP): Free Stock Analysis Report
LPL FINL HLDGS (LPLA): Free Stock Analysis Report
PIPER JAFFRAY (PJC): Free Stock Analysis Report
SCHWAB(CHAS) (SCHW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Piper Jaffray Companies (NYSE:PJC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Piper Jaffray Companies (NYSE:PJC)
Historical Stock Chart
From Jul 2023 to Jul 2024