Bank of America Corp DE Takes Position in LPL Financial Holdings Inc. $LPLA

Key Points

• Bank of America acquired 815,663 shares of LPL Financial worth approximately $229.8 million, while major investors including BlackRock and Jupiter Topco also established sizable positions. Institutional investors now own 95.66% of LPL’s stock.
• LPL Financial reported stronger-than-expected quarterly results, with EPS of $5.84 and revenue of $5.19 billion, representing 35.2% year-over-year revenue growth. The company also maintains a $0.30 quarterly dividend, yielding about 0.4% annually.
• The stock opened at $333.04, down 2.5%, while analysts remain broadly positive: 12 analysts rate it a Buy and five a Hold, producing a “Moderate Buy” consensus and an average price target of $405.79.

Bank of America Corp DE acquired a new stake in LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 815,663 shares of the financial services provider's stock, valued at approximately $229,756,000. Bank of America Corp DE owned approximately 1.04% of LPL Financial at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of LPLA. BlackRock Inc. purchased a new stake in shares of LPL Financial in the 2nd quarter valued at approximately $1,333,189,000. Jupiter Topco LLC purchased a new position in LPL Financial in the second quarter valued at $1,182,595,000. SurgoCap Partners LP purchased a new position in LPL Financial in the second quarter valued at $299,487,000. Norges Bank acquired a new stake in LPL Financial in the fourth quarter valued at $371,616,000. Finally, Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in LPL Financial in the second quarter valued at $290,481,000. Hedge funds and other institutional investors own 95.66% of the company's stock.

Insider Activity

In related news, Director Aneri Jambusaria sold 308 shares of the company's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $357.36, for a total transaction of $110,066.88. Following the completion of the sale, the director directly owned 6,107 shares of the company's stock, valued at approximately $2,182,397.52. This represents a 4.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Enyedi sold 1,000 shares of the company's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $352.72, for a total transaction of $352,720.00. Following the completion of the transaction, the director owned 13,121 shares of the company's stock, valued at $4,628,039.12. This trade represents a 7.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 5,867 shares of company stock valued at $2,079,664 over the last quarter. Insiders own 0.60% of the company's stock.

LPL Financial Stock Down 2.5%

LPL Financial stock opened at $333.04 on Thursday. The stock's 50 day moving average price is $349.41 and its 200 day moving average price is $317.01. LPL Financial Holdings Inc. has a 1-year low of $260.15 and a 1-year high of $400.16. The company has a market cap of $26.22 billion, a PE ratio of 26.56, a price-to-earnings-growth ratio of 0.57 and a beta of 0.48. The company has a debt-to-equity ratio of 1.30, a current ratio of 2.39 and a quick ratio of 2.39.

LPL Financial (NASDAQ:LPLA - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The financial services provider reported $5.84 EPS for the quarter, topping analysts' consensus estimates of $5.39 by $0.45. The firm had revenue of $5.19 billion for the quarter, compared to the consensus estimate of $5.04 billion. LPL Financial had a net margin of 5.13% and a return on equity of 32.20%. The firm's revenue was up 35.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $4.51 earnings per share. On average, sell-side analysts predict that LPL Financial Holdings Inc. will post 24.06 EPS for the current fiscal year.

LPL Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were given a dividend of $0.30 per share. The ex-dividend date was Friday, August 14th. This represents a $1.20 dividend on an annualized basis and a yield of 0.4%. LPL Financial's dividend payout ratio (DPR) is 9.57%.

Wall Street Analyst Weigh In

LPLA has been the subject of several recent analyst reports. Barclays boosted their target price on LPL Financial from $394.00 to $401.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. TD Cowen increased their price target on shares of LPL Financial from $372.00 to $377.00 and gave the company a "hold" rating in a research note on Tuesday, September 1st. Morgan Stanley boosted their price objective on shares of LPL Financial from $374.00 to $387.00 and gave the stock an "overweight" rating in a research report on Friday, July 10th. Truist Financial initiated coverage on shares of LPL Financial in a report on Tuesday, September 1st. They issued a "hold" rating and a $389.00 target price for the company. Finally, Keefe, Bruyette & Woods increased their target price on shares of LPL Financial from $365.00 to $390.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $405.79.

LPL Financial Company Profile

LPL Financial Holdings Inc NASDAQ: LPLA is the parent company of LPL Financial LLC, an independent broker-dealer and registered investment adviser that provides services and support to financial advisors. Rather than operating primarily through a proprietary branch network, LPL enables independent financial professionals, registered investment advisers, and advisors affiliated with banks and credit unions to operate their own practices while accessing investment products, technology, and business resources.

The company's platform supports brokerage and fee-based advisory services, retirement plan services, insurance and annuity products, alternative investments, cash management, research, compliance, and practice management.

Want to see what other hedge funds are holding LPLA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.