LPL Financial Holdings Inc. (NASDAQ:LPLA) Receives Consensus “Moderate Buy” Recommendation From Brokerages

LPL Financial Holdings Inc. (NASDAQ:LPLA – Get Rating) received a consensus rating of “moderate buy” from the seven research firms that currently cover the stock, MarketBeat.com reports. One research analyst rated the stock with a sell recommendation, one issued a hold recommendation and four gave the company a buy recommendation. The 12-month average target price among brokers who have issued ratings on the stock over the past year is $226.67.

A number of research analysts have weighed in on LPLA shares. StockNews.com downgraded LPL Financial from a “hold” rating to a “sell” rating in a Monday, May 2 research rating. Citigroup raised its price target on LPL Financial from $225.00 to $270.00 and gave the company a “buy” rating in a Thursday, April 14 research note. Truist Financial raised its price target on LPL Financial from $200.00 to $230.00 in a research report on Tuesday, May 3. Morgan Stanley cut its price target on LPL Financial from $246.00 to $241.00 and set an “overweight” rating for the company in a Tuesday, July 19 research report. Finally, JMP Securities upgraded LPL Financial from a “market performer” rating to an “outperformer” rating and set a price target of $242.00 for the company in a Thursday, April 7 research report.

Insider buying and selling

In a similar vein, director Michelle Oroschakoff sold 15,724 shares of LPL Financial in a trade that took place on Monday, May 16. The stock was sold at an average price of $172.23, for a total transaction of $2,708,144.52. Following the completion of the sale, the director now directly owns 42,068 shares of the company, valued at approximately $7,245,371.64. The transaction was disclosed in a legal filing with the SEC, accessible via the SEC’s website. In other LPL Financial news, CEO Dan H. Arnold sold 19,508 shares of LPL Financial in a trade on Friday May 27th. The stock was sold at an average price of $200.36, for a total value of $3,908,622.88. Following completion of the transaction, the CEO now directly owns 162,608 shares of the company, valued at approximately $32,580,138.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available via this hyperlink. Additionally, director Michelle Oroschakoff sold 15,724 shares of LPL Financial in a trade on Monday, May 16. The shares were sold at an average price of $172.23, for a total value of $2,708,144.52. Following the completion of the transaction, the administrator now directly owns 42,068 shares of the company, valued at $7,245,371.64. The disclosure of this sale can be found here. 1.60% of the shares are currently held by insiders.

Hedge funds weigh on LPL Financial

Several hedge funds and other institutional investors have recently increased or reduced their stakes in LPLA. Brown Advisory Inc. acquired a new position in LPL Financial in Q4 worth $390,000. Bessemer Group Inc. increased its stake in shares of LPL Financial by 204.8% in the 4th quarter. Bessemer Group Inc. now owns 573 shares of the financial services provider worth $92,000 after buying 385 additional shares in the last quarter. Congress Asset Management Co. MA increased its stake in LPL Financial shares by 2.0% in Q4. Congress Asset Management Co. MA now owns 13,035 shares of the financial services provider valued at $2,087,000 after buying 261 additional shares in the last quarter. State of New Jersey Common Pension Fund D increased its stake in shares of LPL Financial by 4.7% in the 4th quarter. New Jersey State Joint Pension Fund D now owns 44,138 shares of the financial services provider valued at $7,066,000 after buying 1,981 additional shares in the last quarter. Finally, Toth Financial Advisory Corp increased its stake in LPL Financial shares by 56.1% in the 4th quarter. Toth Financial Advisory Corp now owns 5,385 shares of the financial services provider valued at $862,000 after buying an additional 1,935 shares in the last quarter. 96.06% of the shares are held by institutional investors and hedge funds.

LPL’s financial share up 3.1%

LPLA stock opened at $209.92 on Friday. The company has a quick ratio of 1.83, a current ratio of 1.83 and a debt ratio of 1.57. The company has a 50-day moving average price of $189.04 and a two-hundred-day moving average price of $183.46. The company has a market capitalization of $16.79 billion, a price/earnings ratio of 36.96, a P/E/G ratio of 0.50 and a beta of 0.95. LPL Financial has a 12-month low of $134.97 and a 12-month high of $220.80.

LPL Financial (NASDAQ:LPLA – Get Rating) last released its quarterly results on Thursday, April 28. The financial services provider reported earnings per share of $1.95 for the quarter, beating analyst consensus estimates of $1.79 by $0.16. The company posted revenue of $2.07 billion in the quarter, versus a consensus estimate of $2.14 billion. LPL Financial had a return on equity of 35.82% and a net margin of 5.74%. The company’s revenues increased by 21.0% compared to the same quarter last year. During the same period last year, the company earned earnings per share of $1.77. Analysts expect LPL Financial to post 10 EPS for the current financial year.

Announcement of LPL’s financial dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 24. Investors of record on Thursday, June 9 received a dividend of $0.25 per share. The ex-dividend date was Wednesday, June 8. This represents an annualized dividend of $1.00 and a yield of 0.48%. LPL Financial’s payout ratio is currently 17.61%.

About LPL Financial

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LPL Financial Holdings Inc, together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors to financial institutions in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, stocks, retirement and education savings plans, fixed income securities and insurance, as well as alternative investments, such as as non-traded real estate investment trusts and auction rate notes.

Further reading

Analyst Recommendations for LPL Financial (NASDAQ: LPLA)

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