LPL Financial (NASDAQ:LPLA) Price Target Cut to $350.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo lowered its LPL Financial price target to $350 from $362 while maintaining an “overweight” rating, implying about 10.2% potential upside. Analysts overall remain positive, with a consensus “Moderate Buy” rating and a $406.44 average price target.
• LPL reported strong third-quarter results, with adjusted EPS of $5.97 beating estimates and revenue rising 17.4% year over year to $5.34 billion. Client assets grew 11% to $2.6 trillion, while the company repurchased roughly $301 million of stock and declared a $0.30 quarterly dividend.
• Recruiting momentum weakened as recruited assets fell 26% year over year, and management lowered expected Commonwealth asset retention to approximately 83%, factors that may be contributing to investor caution despite solid overall growth.

LPL Financial (NASDAQ:LPLA - Get Free Report) had its target price dropped by investment analysts at Wells Fargo & Company from $362.00 to $350.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm currently has an "overweight" rating on the financial services provider's stock. Wells Fargo & Company's price target would suggest a potential upside of 10.22% from the company's current price.

A number of other research analysts also recently weighed in on LPLA. The Goldman Sachs Group reissued a "buy" rating and issued a $400.00 price target on shares of LPL Financial in a research note on Wednesday. Morgan Stanley lifted their price objective on LPL Financial from $387.00 to $393.00 and gave the stock an "overweight" rating in a research note on Friday, October 9th. TD Cowen increased their target price on shares of LPL Financial from $377.00 to $380.00 and gave the stock a "hold" rating in a report on Monday, October 12th. Weiss Ratings reiterated a "hold (c)" rating on shares of LPL Financial in a research report on Thursday, October 22nd. Finally, UBS Group dropped their price target on LPL Financial from $391.00 to $390.00 and set a "buy" rating on the stock in a research note on Wednesday, October 7th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $406.44.

LPL Financial Stock Performance

NASDAQ:LPLA opened at $317.56 on Wednesday. The stock's fifty day moving average price is $335.24 and its two-hundred day moving average price is $324.30. LPL Financial has a 52-week low of $260.15 and a 52-week high of $400.16. The company has a market cap of $25.01 billion, a price-to-earnings ratio of 25.32 and a beta of 0.53.

LPL Financial (NASDAQ:LPLA - Get Free Report) last released its earnings results on Tuesday, October 27th. The financial services provider reported $5.97 earnings per share for the quarter, topping analysts' consensus estimates of $5.69 by $0.28. The firm had revenue of $5.34 billion for the quarter, compared to the consensus estimate of $5.35 billion. The company's revenue was up 17.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $5.20 EPS. On average, equities analysts predict that LPL Financial will post 23.83 EPS for the current fiscal year.

Insider Activity at LPL Financial

In other news, insider Katharine Reeping sold 440 shares of the firm's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $347.88, for a total transaction of $153,067.20. Following the completion of the sale, the insider owned 1,774 shares in the company, valued at approximately $617,139.12. This trade represents a 19.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Greg Gates sold 4,119 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $355.38, for a total value of $1,463,810.22. Following the transaction, the director owned 23,602 shares in the company, valued at approximately $8,387,678.76. This trade represents a 14.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 5,867 shares of company stock valued at $2,079,664 over the last three months. Company insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in LPLA. Gibbs Wealth Management grew its stake in shares of LPL Financial by 2.3% during the third quarter. Gibbs Wealth Management now owns 1,486 shares of the financial services provider's stock worth $454,000 after buying an additional 33 shares during the last quarter. V Square Quantitative Management LLC grew its stake in shares of LPL Financial by 2.5% in the 3rd quarter. V Square Quantitative Management LLC now owns 1,459 shares of the financial services provider's stock valued at $446,000 after buying an additional 36 shares during the period. Bank of Nova Scotia raised its holdings in LPL Financial by 0.7% during the first quarter. Bank of Nova Scotia now owns 5,705 shares of the financial services provider's stock worth $1,716,000 after buying an additional 37 shares during the last quarter. Sterling Group Wealth Management LLC increased its holdings in LPL Financial by 0.7% during the 1st quarter. Sterling Group Wealth Management LLC now owns 5,869 shares of the financial services provider's stock worth $1,766,000 after purchasing an additional 42 shares in the last quarter. Finally, Berger Financial Group Inc boosted its position in shares of LPL Financial by 6.1% during the first quarter. Berger Financial Group Inc now owns 749 shares of the financial services provider's stock valued at $225,000 after buying an additional 43 shares during the last quarter. Institutional investors and hedge funds own 95.66% of the company's stock.

Key LPL Financial News

Here are the key news stories impacting LPL Financial this week:

• Positive Sentiment: Strong Q3 earnings and business growth: LPL reported adjusted EPS of $5.97, exceeding the $5.69 consensus estimate, while revenue rose 17.4% year over year to $5.34 billion, broadly in line with expectations. Net income reached $357 million, compared with a loss of $30 million in the prior-year quarter. LPL Financial Announces Third Quarter 2026 Results
• Positive Sentiment: Client assets and capital returns increased: Total client assets grew 11% to $2.6 trillion, advisory assets climbed 16% to $1.6 trillion, and organic net new assets totaled approximately $29.1 billion. LPL also repurchased about $301 million of stock and declared a quarterly dividend of $0.30 per share. LPL Financial Q3 2026 Earnings Call Transcript
• Positive Sentiment: Commonwealth integration remains on track: Management expects to complete the Commonwealth Financial Network conversion in the fourth quarter of 2026, with estimated run-rate EBITDA of $415 million. LPL Financial Third Quarter Results
• Neutral Sentiment: Analyst views remain mixed: The average reported price target is $409.69, implying substantial potential upside, but Truist lowered its target from $354 to $335 and downgraded its rating to “hold.” Truist Financial LPL Financial Rating
• Negative Sentiment: Recruiting momentum weakened: Recruited assets fell 26% year over year to $24 billion, although trailing-12-month recruited assets remained $81 billion. Management also lowered expected Commonwealth asset retention to approximately 83%, which may be contributing to investor caution. LPL Financial Q3 Key Metrics

About LPL Financial

LPL Financial Holdings Inc is a financial services company that supports independent financial advisors and institutions across the United States. Through its primary subsidiary, LPL Financial LLC, the company provides brokerage, investment advisory, and custodial services, enabling advisors to serve individual investors, families, retirement plans, and other clients.

LPL's platform includes access to brokerage and advisory products, securities clearing and custody, trading and operations support, technology, compliance services, investment research, and practice-management resources.

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