A TD Ameritrade Insider Bought the Stock

Page 1 of 2

Kerry Peacock, who sits on the Board of Directors at TD Ameritrade Holding Corp. (NYSE:AMTD), directly bought 3,500 shares on January 24th at an average price of $19.08 per share. These are Peacock’s first direct holdings of TD Ameritrade stock, but she joined the Board in July 2012 and we think that is a long enough lag to make this move a legitimate insider purchase rather than a “courtesy purchase” as might happen with a new Board member. She is an officer at Toronto-Dominion Bank (NYSE:TD), which is a major shareholder in TD Ameritrade. Insider purchases can be bullish signals for a company’s stock since they represent enough confidence in higher stock prices to overcome the benefits of diversification (learn more about studies on insider trading).

TD Ameritrade Holding Corp.’s business remained steady in quarter ending December 2012 (the first of its fiscal year), with minimal changes in revenue and earnings from their levels a year earlier. A slight decrease in commissions and transactions revenue was offset by more asset-based revenues. Top and bottom lines were also more or less unchanged compared to the quarter ending in September. The stock does trades at 18 times trailing earnings, so the market is pricing in expectations of at least some growth in the coming years. Analyst expectations imply a current-year P/E of 18 as well. This is a bit concerning to us; while TD Ameritrade’s business does appear very stable, we’d generally want to see a lower earnings multiple for us to consider such a company a good value.

SAC CAPITAL ADVISORS

Billionaire Steve Cohen’s SAC Capital Advisors moved heavily into TD Ameritrade Holding Corp. during the third quarter of 2012, building what had been a very small position for the fund up to 3.7 million shares by the end of September (see more of Cohen’s stock picks). Millennium Management, which is managed by billionaire Israel Englander, also increased its stake substantially during the quarter (find Englander’s favorite stocks). Chuck Akre’s Akre Capital Management was another hedge fund holder of the stock, with 3.2 million shares in its portfolio (check out more stocks Akre Capital Management owned).

How does TD Ameritrade compare to its peers?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!