48.28 +0.25 (0.52%)
After hours: 7:44PM EST
|Bid||48.15 x 1200|
|Ask||48.28 x 1200|
|Day's Range||47.56 - 50.15|
|52 Week Range||38.76 - 57.57|
|Beta (5Y Monthly)||1.34|
|PE Ratio (TTM)||9.25|
|Earnings Date||Apr 14, 2020 - Apr 19, 2020|
|Forward Dividend & Yield||1.40 (2.82%)|
|Ex-Dividend Date||Jan 29, 2020|
|1y Target Est||61.14|
(Bloomberg) -- The 10-year U.S. Treasury yield fell to a record low on Tuesday as investors sought shelter amid concern that the global spread of the coronavirus is threatening supply chains critical to economic growth.The benchmark rate for global borrowing fell as much as 5.8 basis points to 1.3121%, extending its year-to-date decline to 61 basis points. The 30-year yield, which set a fresh all-time low Friday, extended its decline to as low as 1.79%.“The bond market is sniffing out that this is more than a contained virus and the impact on the global economy is probably going to be worse than people are anticipating,” said John Fath, managing partner at BTG Pactual Asset Management and a primary dealer trader from 1993 to 2008.The previous record low for the 10-year, 1.318%, was reached in July 2016 in a rally led by U.K. gilts following the Brexit vote in June.As stocks tumbled worldwide, other haven bond markets also have rallied. German and Dutch 30-year yields turned negative on Monday for the first time since October. The 2-year Treasury yield also slumped, dropping to a three-year low.What this means as an active manager is “you have to collapse risk in your portfolio” and hug more tightly to your benchmark index, said Jim Caron, fixed income money manager at Morgan Stanley Investment Management.Yields can keep sliding as investors pile into safe assets to offset their riskier holdings, according to Caron.“There are very few high-quality hedges in the bond market -- other than the U.S. Treasury market -- that you can buy where yields actually have scope to fall,” he said.Meanwhile, Wall Street is increasingly betting that the Federal Reserve may have to cut rates again as jitters over the virus roil financial markets.With yields below the Fed’s policy rate, “it’s clear their hands are going to be forced by the market if things don’t improve,” said Fath.(Adds comment from an investor)\--With assistance from Emily Barrett.To contact the reporter on this story: Elizabeth Stanton in New York at email@example.comTo contact the editors responsible for this story: Benjamin Purvis at firstname.lastname@example.org, Debarati Roy, Mark TannenbaumFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Companies across the globe are putting their planned initial public offerings on ice as the spread of the coronavirus rocks equity markets and dampens investor appetite for new investments. Carlyle Group has already delayed the U.S. IPO of German specialty chemicals manufacturer Atotech over concerns that the virus could negatively impact the valuation it would achieve with investors, according to a report by Reuters. Russ Mould, investment director at stockbroker AJ Bell, said a prolonged slide in shares would not be helpful for the IPO market for two reasons.
(Bloomberg) -- Intuit Inc., the software giant behind TurboTax, is buying personal finance website Credit Karma Inc. for about $7.1 billion in cash and stock.San Francisco-based Credit Karma has garnered more than 100 million users by offering free credit scores since it was founded in 2007. The financial technology startup offers other services too, including the ability to apply for a credit card, find an auto loan or start a savings account. The combination will help consumers manage debt, maximize savings and have better access to credit cards and loans, Intuit said in a statement Monday.Fintech companies are at a crossroads where a number of them are established enough to go public, but a spate of poor-performing IPOs are making acquisitions more attractive. At the same time, incumbent companies aren’t afraid to snap up startups as a way to fuel their own growth. “The fertile M&A market, shift to growth stage investments, and rich valuations open the door for a lot of discussions, as well as distractions,” said Lindsay Davis, an analyst at CB Insights. “Fintech startups will have a choice to take a deal or buckle down and focus on filling product gaps.”Perhaps most similar to Intuit, Credit Karma also launched a free tax-filing platform a few years ago and has been trying to poach customers of Intuit’s TurboTax offering.More than 30 million users log into Credit Karma every week, the company has said. These users don’t pay the company for any of its services, and Credit Karma makes money through an affiliate fee it receives when someone successfully applies for a loan or credit card on its platform. Credit Karma generated almost $1 billion in unaudited revenue last year, up 20% from 2018, Intuit said.Intuit also reported fiscal second-quarter results, with revenue up 13% in the period to $1.7 billion, topping the average analyst estimate of $1.68 billion. Net income rose 27% to $240 million, or 91 cents a share, in the three months ended Jan. 31. The company reiterated its fiscal 2020 outlook for revenue of $7.44 billion to $7.54 billion. The transaction is expected to be neutral or add to Intuit’s adjusted earnings per share in the first full fiscal year after the transaction closes, the company said.The deal is only the latest in a slew of acquisitions in the industry. Morgan Stanley recently announced plans to buy E*Trade Financial Corp. for $13 billion, while Visa Inc. agreed to acquire Plaid for $5.3 billion in January.Late last year, PayPal Holdings Inc. snapped up online coupon company Honey Science Corp. for $4 billion and Charles Schwab Corp. is acquiring TD Ameritrade Holding Corp. for $26 billion.QED Investors, Ribbit Capital and Founders Fund were early backers of Credit Karma.(Updates with Intuit earnings results in sixth paragraph.)To contact the reporter on this story: Julie Verhage in New York at email@example.comTo contact the editors responsible for this story: Mark Milian at firstname.lastname@example.org, Linus Chua, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Jonathan Pruzan, Executive Vice President and Chief Financial Officer of Morgan Stanley, will speak at the Credit Suisse Financial Services Forum in Florida on Thursday, February 27, 2020, at 3:20 p.m. (ET).
(Bloomberg Opinion) -- E*Trade Financial Corp. sits at the intersection of two of the world’s most persistent boys’ clubs: Wall Street and Silicon Valley. But behind the layers of computer code that enable at-home investors — another mostly male crowd — to buy and sell stocks online, there’s a group of female tech wizards at E*Trade that make it possible.Fostering a culture that attracts and advances women in the STEM fields is one more way that E*Trade, one of the earliest online brokerages, has been a pioneer in the industry. That little-known trait is something its new corporate parent, Morgan Stanley, would be smart to preserve — and emulate — especially as it looks to reach a wider set of customers. Morgan Stanley agreed on Thursday to acquire E*Trade for $13 billion, fusing together an old-school brokerage business of wealthy Wall Street clients with a digital Main Street brand that resonates with younger people. It’s an opportunity for the white-shoe firm to gain a new type of customer it wasn’t equipped to reach in a corner of the market that’s growing — and one that’s bound to draw more prospective female customers over time. E*Trade had 5.17 million retail accounts as of December and an average of more than 300,000 trades each day. I first learned about E*Trade’s impressive roster of female tech leadership in mid-2018, when I had the pleasure of interviewing them and hearing their stories in the company’s New York office just outside Times Square. They reflected on working their way up in an industry where they initially saw few other female faces, then later a few more, and more yet when they joined E*Trade.Women still head up key teams, such as the innovation lab, run by Jeanne Jang, an alum of International Business Machines Corp. Liensa Vidra has risen up the E*Trade ranks to vice president of product management, and Heather Munoz is senior vice president of tech development, following a career at CME Group Inc. Alice Milligan, who’s made stops at American Express Co. and Citigroup Inc.’s North America consumer bank, was named E*Trade’s chief customer officer last May, overseeing all retail products and how digital customers use them. As with any business, some employees I met have moved on, but the leadership in the chief customer office — the core of E*Trade — is currently 60% female, according to a spokeswoman. That’s almost unheard of in financial services, where it’s hard not to notice that almost all the firms are named after men (Morgan Stanley included). A few of the women I spoke with stressed the importance of informal mentoring — from both male and female leaders — and having it happen organically. Alison Li, a web development manager for whom English is a second language, said that she had never had a female mentor until joining E*Trade and that it brought her out of her shell. “I felt the difference,” she said in our 2018 interview. Diversity helps the intimidation factor of being a woman in fintech fade away, is how Eileen Kane, now vice president of IT project management, put it at the time. Having a father who was an engineer when she was growing up, Kane “never thought this wasn’t a place for women to be,” a message she has since passed on to her children; her 20-year-old daughter is a STEM student. A common sentiment they all shared was wanting to pay it forward for the next crop of female techies. E*Trade might be one of the last places one would expect to find such a bastion of female support and diversity. After all, this is a company that just three years ago advertised its services with a cliche commercial showing a dorky white guy partying on a yacht full of bikini-clad bombshells after becoming rich using E*Trade. Its commercials have since evolved: One of last year’s ads swapped out the dude for an adorable dog on a speedboat; another featured a young woman floating poolside on an Instagrammable swan raft while checking her E*Trade account. Broadly speaking, women, not least because they earn less than men, also invest less. A 2017 survey by Bank of America Merrill Lynch found that while most are confident in budgeting and paying bills, only 52% are confident managing investments, compared with 68% of men. A majority of the female respondents also said that the financial services industry has traditionally catered to men. Funny enough, an abundance of research has shown that women make pretty good investors. They tend to be more cautious, patient, trade less (which saves on fees), are less prone to panic and thus outperform. As I’ve noted before, it’s no wonder that women share these traits with Warren Buffett, the world’s most celebrated investor. Even so, only 10% of fund managers in the U.S. are women, and they tend be put in charge of passive funds, according to consistently depressing but important research done by Morningstar Inc.Corporate America has certainly placed a bigger emphasis on gender diversity and pay equity. But when companies brag about their progress, a closer look will often reveal that female leaders tend to be clustered around public relations and human resources. As important as that work is, those positions don’t put women on course to become the next CEO.That’s why I found E*Trade so refreshing. Women are at the center of the company’s foundation: its technology, the “E” in its 1990s-throwback of a name. Having that diverse perspective and life experience will only help E*Trade and its new parent design products that appeal to a wider group of customers. (I’d be remiss not to mention Ellevest here, a robo-adviser that already specifically targets women and was founded by Sallie Krawcheck, who once ran wealth management at Bank of America and Citi.)James Gorman, chairman and CEO of Morgan Stanley, said he’s considering calling his newly acquired business something along the lines of E*Trade Powered by Morgan Stanley, but that it’d be “completely nuts” to get rid of the E*Trade brand. E*Trade CEO Mike Pizzi isn’t going anywhere either. The bank would do well to keep E*Trade’s culture intact, too.To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Rating Action: Moody's reviews Morgan Stanley for upgrade. Global Credit Research- 21 Feb 2020. New York, February 21, 2020-- Moody's Investors Service has placed on review for upgrade Morgan Stanley's ...
Intuit Inc. is close to buying Credit Karma Inc. for about $7 billion in cash and stock deal, the Wall Street Journal reported, citing people familiar with the matter it didn’t identify.The purchase, which could be announced by Monday, will push the maker of TurboTax deeper into the consumer finance space, the newspaper said. The acquisition would also be Intuit’s largest in its 37-year history, it added.Broadening its sales base is important at a time when Morgan Stanley said it’s expecting tax-preparation software companies to face headwinds for the revenue they get from each tax return this year due to the combined effect of a rising mix of free filings and lower need for services that assist do-it-yourself filers.Still, Morgan Stanley analyst Keith Weiss had expected Intuit to hit the high end of its implied consumer tax guidance as TurboTax continues to gain market share. Intuit shares have risen 14% since the start of the year, compared with a 3.3% advance in the S&P 500 Index.Tax-Prep Analyst Sees More Free Filers Hampering Revenue GrowthUnder current negotiations, closely-held Credit Karma would operate as a standalone unit with its Chief Executive Officer Kenneth Lin staying in charge, one person told the paper. The San Francisco-based company is backed by funds such as private-equity firm Silver Lake and financial-technology venture firm Ribbit Capital, it added.Credit Karma, which was co-founded by Lin, was considering an initial stock offering before late 2019 amid a series of weak-performing trading debuts, the newspaper said. Its website gives users access to credit scores and recommends financial products from credit cards to personal and car loans.Intuit is expected to report its second-quarter earnings on Monday.Credit Karma Changed Its Approach to Gain Customer Trust(Adds more details starting in third paragraph.)To contact the reporter on this story: Jihye Lee in Seoul at email@example.comTo contact the editors responsible for this story: Shamim Adam at firstname.lastname@example.org, ;Liana Baker at email@example.com, Linus Chua, Sungwoo ParkFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Morgan Stanley said Thursday that is acquiring discount brokerage E-Trade Financial Corp. in an all-stock deal valued at $13 billion that is the biggest for a major U.S. bank since the 2008 financial crisis.
On Thursday, Morgan Stanley entered into a deal to buy E*Trade, the biggest acquisition by a major Wall Street bank since the 2007-2009 financial crisis. E*Trade has been the subject of M&A speculation for some time, especially after Charles Schwab Corp said it would buy TD Ameritrade Holding Corp last year. If Morgan Stanley terminates the deal due to antitrust issues, E*Trade would receive $525 million, Morgan Stanley said in a regulatory filing https://www.sec.gov/ix?doc=/Archives/edgar/data/895421/000095010320003111/dp121716_8k.htm.
Thursday’s headlines that Morgan Stanley is buying E*Trade generated more than a few OMGs. Questions are swirling, however, about what Morgan Stanley will do with E*Trade’s custody business for independent advisors. Two teams managing about $10 billion reportedly have left Goldman Sachs.
The stock market rally pulled back on coronavirus fears, including an Apple warning. Domino's Pizza, SolarEdge and Enphase Energy were big earnings winners.
E*Trade Financial shares are giving back some of Thursday’s surge as investors size up Morgan Stanley’s deal to buy the online broker for $13 billion.
Rating Action: Moody's reviews Morgan Stanley for upgrade. Global Credit Research- 21 Feb 2020. New York, February 21, 2020-- Moody's Investors Service has placed on review for upgrade Morgan Stanley's ...
Interactive Brokers and Fidelity are the kings of a new era in which trading commissions have disappeared, websites keep improving, and industry consolidation is under way.
WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of E*TRADE Financial Corporation ("ETFC" or the "Company") (NASDAQ: ETFC) in connection with the proposed acquisition of the Company by Morgan Stanley ("MS") (NYSE: MS). Under the terms of the acquisition agreement, ETFC shareholders will receive 1.0432 shares of MS for each ETFC share they own. This represents consideration of $58.74 based on the closing price of MS on February 19, 2020. The transaction is expected to close in the fourth quarter of 2020.
The head of field management sits down with Barron’s Advisor to discuss his rise up the ranks, the importance of data analytics and the newly announced deal to acquire E*Trade.
Our annual look at the top online brokers spotlights websites that beat the pack with cutting-edge technology, ease of use, and abundant functionality. Here’s a look at the brokers, and at their strengths and weaknesses.
Morgan Stanley's (MS) recently-announced acquisition with E*TRADE Financial (ETFC) reflects the companies' strategic efforts for business expansion, unlocking growth opportunities.
(Bloomberg) -- It was hard for James Gorman to contain his exuberance.The chief executive officer of Morgan Stanley had just ended a decade-long drought of major takeovers by top U.S. banks with his surprise deal to buy E*Trade Financial Corp. for $13 billion. Across the industry, where it’s long been taboo to get “too big,” speculation was erupting that conditions had finally lined up for a wave of similarly hefty acquisitions.So when analysts asked how it all came together, the normally staid CEO paused for a moment.“I’ve just strained my vocal cords with all the excitement,” Gorman said on a conference call Thursday. “I must have been screaming from the rooftops or something.”Morgan Stanley’s announcement is being interpreted by analysts, investors and investment bankers as just the start of a long-predicted series of deals big enough to reshape the upper echelons of the U.S. financial industry. Many of the largest banks are wielding highly valued stock at a time that Silicon Valley innovators are looking to wrest away business. Mergers and acquisitions are one way for banks to both scale up and adapt.“The financial performance of the industry allows acquirers to transact from a position of strength,” said Anu Aiyengar, co-head of global M&A at JPMorgan Chase & Co. “More broadly, digital disruption is making it more important to optimize cost and efficiency.”Some observers also point to the prospect that regulation may stiffen after U.S. elections in November if a Democrat wins the presidency. The field of candidates seeking to challenge Donald Trump includes several who have vowed to rein in -- or even break up -- “too big to fail” banks.More than 40% of top bank executives said in a November study by EY that they planned to actively pursue a deal in the following 12 months. Roughly one-fifth of those executives said they’d use a merger to improve their talent pool, while others said they’d use it to enter new markets. They will have to announce any significant takeovers soon to clear regulatory hurdles and complete transactions by the start of 2021, or potentially take their chances with a new administration.‘Big Chance’Gorman had eyed the online retail brokerage for almost 20 years before everything lined up. For Morgan Stanley, the all-stock deal lands E*Trade’s direct-to-consumer digital capabilities as well as $360 billion of client assets. Gorman reassured analysts that his firm is already conferring with regulators -- such as the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. -- to win approval for the deal.“We wouldn’t be entering into this if we didn’t think, from a regulatory perspective, this would be viewed favorably,” Gorman said. “That’s not something we would put to big chance.”In recent years, regional lenders have made most of the transformational deals in U.S. banking as they try to bulk up to improve earnings, weather the impact of low interest rates on margins and fend off tech startups. Last year saw the combination of SunTrust Banks Inc. and BB&T Corp., which emerged as Truist Financial Corp., the sixth-largest U.S. commercial bank.While Gorman said he still sees E*Trade as a so-called bolt-on acquisition, the price is significantly larger than the takeovers the largest banks have emphasized in recent years to augment business lines. It may open the way for rivals to seek larger targets too.“It’s all about growth,” said Julien Courbe, PwC’s financial services advisory leader in New York. “A lot of the banks have addressed their cost structure and continue to do so, but they are looking to get volume and scale, and that’s forcing considerations for deal activity.”Other IndustriesMatchmakers have proposed a wide variety of large takeovers by big U.S. banks over the past decade only to be disappointed. Some suggested, for example, that credit-card lender Discover Financial Services could make a juicy target for a variety of large consumer banks. Reuters Breakingviews floated the idea two years go that Goldman Sachs Group Inc. should buy Bank of New York Mellon. When ValueAct Capital Management later bought a stake in Citigroup Inc., analysts suggested the activist fund could push the bank to buy another of its holdings, Alliance Data Systems. The deals never materialized.It’s not just banks seeking to grow through mergers and acquisitions. The two biggest U.S. life insurers, MetLife Inc. and Prudential Financial Inc., are both open to acquisitions even as they seek to divest in slower-growth areas. Both firms struck deals last year, with Prudential agreeing to buy a startup consumer platform for $2.35 billion, while MetLife acquired a pet insurance administrator and a digital estate planning service.Leaders of payments companies also have said they’re looking to participate in the industry’s consolidation. Mastercard Inc.’s CEO Ajay Banga compared his business development team to “gnomes in Santa’s shop” that bring him as many as 60 deals in a year to consider. FleetCor Technologies Inc., a fuel card provider, has said it has a list of “big elephants” it hopes to bag.Wealth managers and robo-advisers are also appealing targets because of their relatively stable revenue, which can offset volatility from trading businesses. Goldman Sachs bought United Capital for $750 million last year, while Morgan Stanley beefed up its wealth division by buying stock-plan administrator Solium Capital Inc. for $900 million.Buyers aren’t the only ones under pressure. Charles Schwab Corp.’s acquisition of TD Ameritrade Holding Corp. in November reshaped the brokerage industry and encouraged E*Trade to consider a sale. Goldman Sachs Group Inc. was among firms that also took at least a cursory look at E*Trade before giving it a pass, according to people with knowledge of the matter.“Frankly, if I’m on the E*Trade board I’m certainly feeling a sense of urgency to find a buyer,” Thomas Bradley, the former president of TD Ameritrade, said at the time.Still, Gorman cautioned that it’s unlikely that the biggest banks will try to pull off transformational deals. They will instead stick to targets that add capabilities or round out businesses. And not every firm, he noted, has the means to shop.“You’ve got to be in the condition to do it, your stock has to reflect the value of the company, you have to have momentum that investors want to see,” Gorman said in an interview on Bloomberg Television. “But these bolt-on acquisitions. Listen, if they make sense? Absolutely.”\--With assistance from Sridhar Natarajan and Sonali Basak.To contact the reporters on this story: Jenny Surane in New York at firstname.lastname@example.org;Lananh Nguyen in New York at email@example.com;Nabila Ahmed in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael J. Moore at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.