NEW YORK (TheStreet) -- TD Ameritrade (AMTD) shares are down - 4.0% to $30.74 in trading Friday.
U.S. Attorney General Eric Holder announced that the Justice Department would be conducting an investigation into the practice of "high frequency trading" due to concerns about possible insider trading on Friday.
High frequency trading is one of the most profitable aspects of TD Ameritrade's business.
"The practice, which consists of financial brokers and trading firms using advanced computer algorithms and ultra-high speed data networks to execute trades, has rightly received scrutiny from regulators. I can confirm that we at the United States Department of Justice are investigating this practice to determine whether it violates insider trading laws," Holder said today during testimony before a House Appropriations subcommittee.
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TheStreet Ratings team rates TD AMERITRADE HOLDING CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TD AMERITRADE HOLDING CORP (AMTD) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."