LPL Financial (NASDAQ:LPLA) Reaches New 12-Month High – Here’s Why

LPL Financial Holdings Inc. (NASDAQ:LPLA) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $344.86 and last traded at $338.76, with a volume of 32477 shares traded. The stock had previously closed at $333.09.

Wall Street Analysts Forecast Growth

LPLA has been the subject of a number of recent analyst reports. JMP Securities reissued a “market outperform” rating and set a $310.00 target price on shares of LPL Financial in a research note on Wednesday, October 9th. Barclays lifted their price objective on LPL Financial from $311.00 to $378.00 and gave the company an “overweight” rating in a report on Monday, December 9th. Morgan Stanley increased their target price on shares of LPL Financial from $303.00 to $309.00 and gave the stock an “overweight” rating in a report on Thursday, October 17th. Keefe, Bruyette & Woods raised their target price on shares of LPL Financial from $325.00 to $390.00 and gave the company an “outperform” rating in a research report on Friday, December 20th. Finally, StockNews.com raised shares of LPL Financial from a “sell” rating to a “hold” rating in a research report on Saturday, November 9th. One analyst has rated the stock with a sell rating, two have issued a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat, LPL Financial has an average rating of “Moderate Buy” and an average target price of $334.42.

LPL Financial Price Performance

The stock’s 50-day moving average is $316.97 and its 200 day moving average is $263.88. The company has a debt-to-equity ratio of 1.60, a current ratio of 2.16 and a quick ratio of 2.16. The company has a market cap of $25.36 billion, a PE ratio of 25.46, a PEG ratio of 1.60 and a beta of 0.86.

LPL Financial (NASDAQ:LPLA) last announced its earnings results on Wednesday, October 30th. The financial services provider reported $4.16 earnings per share for the quarter, topping the consensus estimate of $3.69 by $0.47. LPL Financial had a return on equity of 49.47% and a net margin of 8.73%. The firm had revenue of $3.11 billion for the quarter, compared to the consensus estimate of $3.04 billion. During the same period in the previous year, the business earned $3.74 EPS. The firm’s revenue for the quarter was up 6.0% on a year-over-year basis. On average, equities analysts anticipate that LPL Financial Holdings Inc. will post 16.1 earnings per share for the current fiscal year.

LPL Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, December 2nd. Shareholders of record on Thursday, November 14th were given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 0.35%. The ex-dividend date of this dividend was Thursday, November 14th. LPL Financial’s dividend payout ratio is presently 9.02%.

Insider Buying and Selling at LPL Financial

In other LPL Financial news, Director Aneri Jambusaria sold 305 shares of the business’s stock in a transaction dated Thursday, December 5th. The stock was sold at an average price of $331.94, for a total transaction of $101,241.70. Following the sale, the director now owns 3,920 shares in the company, valued at approximately $1,301,204.80. The trade was a 7.22 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On LPL Financial

A number of institutional investors and hedge funds have recently modified their holdings of the company. FMR LLC raised its position in LPL Financial by 24.4% during the 3rd quarter. FMR LLC now owns 3,322,571 shares of the financial services provider’s stock worth $772,930,000 after buying an additional 650,675 shares during the last quarter. JPMorgan Chase & Co. lifted its position in LPL Financial by 27.6% during the third quarter. JPMorgan Chase & Co. now owns 1,275,136 shares of the financial services provider’s stock valued at $296,635,000 after purchasing an additional 276,166 shares during the period. Southpoint Capital Advisors LP boosted its holdings in LPL Financial by 50.0% in the third quarter. Southpoint Capital Advisors LP now owns 750,000 shares of the financial services provider’s stock valued at $174,472,000 after purchasing an additional 250,000 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC grew its position in LPL Financial by 9.9% during the 2nd quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,589,793 shares of the financial services provider’s stock worth $723,329,000 after purchasing an additional 233,242 shares during the period. Finally, Maverick Capital Ltd. raised its stake in shares of LPL Financial by 82.0% during the 3rd quarter. Maverick Capital Ltd. now owns 497,075 shares of the financial services provider’s stock valued at $115,635,000 after buying an additional 223,931 shares during the last quarter. Institutional investors and hedge funds own 95.66% of the company’s stock.

About LPL Financial

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 at enterprises in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, fixed income, alternative investments, retirement and 529 education savings plans, and insurance.