Sterne Agee reported that they have reduced their rating for financial services company, TD Ameritrade Holding Corp.(AMTD) on Tuesday.
The firm has downgraded AMTD from a “Buy” to “Neutral,” and has reaffirmed its $19 price target on the company. This price target suggests a 4% increase from the stock’s current price of $18.19.
A Sterne Agee analyst noted, “with AMTD shares up 20% since the November lows (vs. S&P +8.5%) and with less than 5% upside to our target, we would no longer put new money into the stock. While we see tremendous upside with normalized rates and increased client activity, the recent run in the stock hasn’t coincided with an appreciable improvement in the operating environment (slightly higher rates offset by weaker volumes).”
TD Ameritrade shares were mostly flat during premarket trading Tuesday. The stock has dropped -2.5% in the past year.
The Bottom Line
Shares of TD Ameritrade (AMTD) have a 1.98% dividend yield, based on last night’s closing stock price of $18.19. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $19-$20 price levels.
TD Ameritrade Holding Corp(AMTD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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