Fact Check: What’s wrong with TD Ameritrade Holding Corporation (AMTD) today

The biggest losers of the session on the Wall Street include TD Ameritrade Holding Corporation (NASDAQ:AMTD), which fell -2.79 points or -5.36% to trade at $49.31 as last check. The stock closed last session at $52.1 and sets an active trading volume day with a reported 1858513 contracts so far this session. AMTD shares had a relatively better volume day versus average trading capacity of 1.85 million shares, but with a 0.51 billion float and a -5.31% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AMTD stock indicates that the average analyst price target is $61.53 per share. This means the stock has a potential increase of 24.78% from where the AMTD share price has been trading recently which is between $51.97 and $53.19. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $55.

The shorts are running away from TD Ameritrade Holding Corporation (AMTD) stock. The latest set of short interest data was released on 28 February 2019, and the numbers show a drop in short interest in AMTD shares. While short interest still represents only 1.03% of AMTD’s float, the number of shares shorted have fallen by -386302. The number of shares shorted fell to 5227342 shares, down from 5613644 shares during the preceding fortnight. With average daily trading volumes at 1459451 shares, days to cover increased to about 2.52931 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Tom Nally: Serving, Not Competing, With RIAs” and dated March 22, 2019.

During the recent trading session for TD Ameritrade Holding Corporation (NASDAQ:AMTD), the company witnessed their stock drop by $-5.52 over a week and tumble down $-7.56 from the price 20 days ago. When compared to their established 52-week high of $62.99, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/06/18. The recent low of $45.7 stood for a -21.72% since 12/26/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.24 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for TD Ameritrade Holding Corporation, the two-week RSI stands at 23.41. This figure suggests that AMTD stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current AMTD readings is similarly very revealing as it has a stochastic reading of 1.66% at this stage. This figure means that AMTD share price today is being overbought.

Technical chart claims that TD Ameritrade Holding Corporation (AMTD) would settle between $52.87/share to $53.64/share level. However, if the stock price goes below the $51.65 mark, then the market for TD Ameritrade Holding Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $51.2 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -2.24. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Goldman, assumed coverage of AMTD assigning Neutral rating, according to their opinion released on November 30. UBS analysts bumped their rating on TD Ameritrade Holding Corporation (NASDAQ:AMTD) stock from Neutral to Buy in a separate flash note issued to investors on November 19. Analysts at Morgan Stanley released an upgrade from Equal-Weight to Overweight for the stock, in a research note that dated back to November 14.

AMTD equity has an average rating of 2.05, with the figure leaning towards a bullish end. 19 analysts who tracked the company were contacted by Reuters. Amongst them, 5 rated the stock as a hold while the remaining 14 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 13 analysts rated TD Ameritrade Holding Corporation (NASDAQ:AMTD) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, AMTD stock price is currently trading at 11.9X forward 12-month Consensus EPS estimates, and its P/S ratio is 7.24 while for the average stock in the same group, the multiple is 3.99. TD Ameritrade Holding Corporation current P/E ratio of 30.25 means it is trading at a discount against its industry’s 56.95. In the past 5 years, this ratio for the stock has been fluctuating between 14.28 and 23.49.

TD Ameritrade Holding Corporation (AMTD)’s current-quarter revenues are projected to climb by nearly 4.41% to hit $1.48 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 9.62% from $5.45 billion to a noteworthy $5.98 billion. At the other end of the current quarter income statement, TD Ameritrade Holding Corporation is expected to see its adjusted earnings surge by roughly 30.14% to hit $0.95 per share. For the fiscal year, AMTD’s earnings are projected to climb by roughly 21.86% to hit $4.07 per share.