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Schwab (SCHW) Declines 3.2% as May Metrics Fall Sequentially

Zacks Equity Research

Shares of Charles Schwab SCHW have declined 3.2% following the release of its monthly activity report for May 2019. Total client assets came in at $3.5 trillion, down 4% from the prior month but up 5% from the year-ago month.

Client assets receiving ongoing advisory services were $1.85 trillion, down 3% sequentially but up 5% year over year. Schwab’s average interest earning assets were $263.7 billion at the end of May, declining 2% from April 2019 but improving 9% from May 2018 level.

New brokerage accounts opened by the company in May 2019 were down 16% sequentially but up 1% year over year.

Schwab’s active brokerage accounts totaled 11.9 million at the end of May, relatively stable sequentially, and up 7% from the year-ago month. Further, client’s banking accounts were 1.3 million, rising 1% from April 2019 and 7% from May 2018. The number of retirement plan participants rose 1% from the prior month and 6% year over year to 1.7 million.

Shares of Schwab have rallied 1.4% over the past six months, underperforming 4.7% rise of the industry.

Schwab currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Investment Brokers

E*TRADE Financial’s ETFC Daily Average Revenue Trades (DARTs) for May 2019 were 279,058, up 2% from the previous month and 14% year over year. Derivatives comprised 33% of DARTs in May.

Interactive Brokers Group, Inc. IBKR released its Electronic Brokerage segment’s performance metrics for May. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a year-over-year and sequential decrease in DARTs. Total client DARTs were 894,000, up 15% from April 2019 as well as from May 2018.

Upcoming Release

LPL Financial Holdings LPLA is likely to report monthly activity for May soon.

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