ORLANDO, Fla., March 7, 2007 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, updated research on OptionsXpress Holdings (Nasdaq:OXPS).
Lisa Springer, MBA, CFA, RedChip Research Analyst, wrote in the report:
"OptionsXpress's customer assets grew 37 percent during FY2006 to $4.7 billion. Average customer margin balances increased 10 percent during the year to $127,073. The Company increased cash dividends 25 percent earlier this year to an annualized rate of $0.20 per share. At the current price of $23, OptionsXpress shares offer a modest 1 percent dividend yield. The Company reiterated confidence in its long-term growth prospects in the FY2006 year-end earnings release, citing competition among exchanges, the advent of penny-increment pricing, and broadening investor interest in options as factors supporting a favorable outlook.
"We initiated coverage of OptionsXpress with a "Buy" rating in January 2005 and increased our target price to $33 last April. We think OptionsXpress remains well-positioned to capitalize on double-digit growth in the volume of options trading, continued increases in the number of households with on-line brokerage accounts, and ongoing consolidation within the brokerage industry. At the current price of $23, these shares trade at only a 13 times forward P/E multiple, according to the consensus of analysts' estimates of EPS for FY2007."
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RedChip Independent Research Disclosure
The analysts contributing to this report do not hold any shares of OXPS. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. OXPS is not a client of RedChip Companies, or any of its affiliates.