LPL Financial (NASDAQ:LPLA) Posts Earnings Results, Beats Estimates By $0.31 EPS

Key Points

• LPL Financial beat earnings expectations, reporting $5.97 in quarterly EPS versus the $5.66 consensus estimate. Revenue totaled $5.34 billion, slightly below analysts’ $5.35 billion forecast.
• Wall Street maintained a favorable outlook, with 14 analysts rating the stock Buy and three Hold; the consensus rating is Moderate Buy with a $409.69 price target.
• Insiders have been net sellers recently, with executives and directors selling 5,867 shares worth approximately $2.08 million over the past 90 days.

LPL Financial (NASDAQ:LPLA - Get Free Report) issued its earnings results on Tuesday. The financial services provider reported $5.97 earnings per share for the quarter, beating the consensus estimate of $5.66 by $0.31, FiscalAI reports. The business had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.35 billion. LPL Financial had a net margin of 5.13% and a return on equity of 32.20%.

LPL Financial Price Performance

NASDAQ LPLA traded up $0.33 during trading hours on Tuesday, reaching $317.56. 1,034,214 shares of the company's stock were exchanged, compared to its average volume of 888,092. The stock has a market cap of $25.00 billion, a PE ratio of 25.32, a price-to-earnings-growth ratio of 0.54 and a beta of 0.53. LPL Financial has a one year low of $260.15 and a one year high of $400.16. The firm has a fifty day moving average of $336.26 and a 200-day moving average of $324.51. The company has a current ratio of 2.39, a quick ratio of 2.39 and a debt-to-equity ratio of 1.30.

Wall Street Analysts Forecast Growth

LPLA has been the subject of a number of analyst reports. JPMorgan Chase & Co. raised their price target on shares of LPL Financial from $428.00 to $445.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 7th. Keefe, Bruyette & Woods upped their price objective on LPL Financial from $365.00 to $390.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Truist Financial set a $354.00 target price on LPL Financial in a report on Tuesday, October 13th. Capital One Financial set a $370.00 target price on LPL Financial in a report on Tuesday, October 6th. Finally, Citigroup restated a "market outperform" rating on shares of LPL Financial in a research report on Monday, October 5th. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $409.69.

Insiders Place Their Bets

In other LPL Financial news, insider Katharine Reeping sold 440 shares of the business's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $347.88, for a total value of $153,067.20. Following the transaction, the insider owned 1,774 shares of the company's stock, valued at approximately $617,139.12. The trade was a 19.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Aneri Jambusaria sold 308 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $357.36, for a total value of $110,066.88. Following the sale, the director owned 6,107 shares in the company, valued at $2,182,397.52. The trade was a 4.80% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 5,867 shares of company stock worth $2,079,664. 0.60% of the stock is owned by company insiders.

LPL Financial Company Profile

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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