E*TRADE Stock Pops After Jefferies Says "Buy"

The online investment firm could fetch $70 per share, according to the analyst

Sep 19, 2018 at 9:52 AM
facebook twitter linkedin

Jefferies upgraded E*TRADE Financial Corp (NASDAQ:ETFC) to "buy" from "hold," saying the stock's current trading price creates an attractive entry point and a potential buyout bid could fetch as much as $70 per ETFC share. Out of the gate, the financial shares are trading up 3% at $55.38.

More broadly, ETFC stock has shed 16% since topping out near $66.50 back in June, breaching long-term support at its 120-day and 180-day moving averages in the process. However, the security appears to have stabilized near $53, and remains almost 12% higher year-to-date.

Despite E*Trade's recent technical troubles, there's plenty of optimism still priced into the shares. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 10.81 ranks in the 83rd annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

Plus, the majority of the 12 analysts following ETFC stock echo Jefferies' outlook, maintaining a "buy" rating on the investment stock. Meanwhile, the average 12-month price target of $68.57 is a nearly 24% premium to current trading levels.

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!



Special Offers from Schaeffer's Trading Partners