Cantillon Capital Management LLC Takes Position in LPL Financial Holdings Inc. $LPLA

Key Points

• Cantillon Capital Management opened a new position in LPL Financial, buying 369,068 shares valued at about $131.8 million in the fourth quarter.
• LPL Financial reported quarterly earnings of $5.60 per share, topping estimates, while revenue rose 34.6% year over year to $4.94 billion.
• Analysts remain mostly positive on the stock, with a consensus rating of “Moderate Buy” and an average price target of $398.86, despite some recent target cuts.

Cantillon Capital Management LLC bought a new position in shares of LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 369,068 shares of the financial services provider's stock, valued at approximately $131,820,000. Cantillon Capital Management LLC owned 0.46% of LPL Financial as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of LPLA. LPL Financial LLC increased its holdings in LPL Financial by 3.8% in the fourth quarter. LPL Financial LLC now owns 134,639 shares of the financial services provider's stock valued at $48,089,000 after buying an additional 4,941 shares in the last quarter. Erste Asset Management GmbH acquired a new position in LPL Financial in the 4th quarter worth about $456,000. CenterBook Partners LP acquired a new position in LPL Financial in the 4th quarter worth about $7,616,000. JPMorgan Chase & Co. boosted its position in LPL Financial by 27.5% during the fourth quarter. JPMorgan Chase & Co. now owns 1,197,366 shares of the financial services provider's stock worth $427,664,000 after purchasing an additional 258,611 shares in the last quarter. Finally, Egerton Capital UK LLP purchased a new position in LPL Financial during the fourth quarter worth approximately $91,012,000. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Jefferies Financial Group reduced their target price on LPL Financial from $464.00 to $383.00 and set a "buy" rating for the company in a research note on Monday, April 6th. Keefe, Bruyette & Woods began coverage on shares of LPL Financial in a research note on Wednesday, April 8th. They issued an "outperform" rating and a $350.00 price target on the stock. Barclays boosted their price target on shares of LPL Financial from $369.00 to $412.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. JPMorgan Chase & Co. decreased their price objective on shares of LPL Financial from $396.00 to $390.00 and set an "overweight" rating on the stock in a report on Friday, May 1st. Finally, William Blair reiterated an "outperform" rating on shares of LPL Financial in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $398.86.

Insider Transactions at LPL Financial

In related news, Director Marc Eliot Cohen sold 1,088 shares of the firm's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $309.72, for a total transaction of $336,975.36. Following the completion of the sale, the director directly owned 4,400 shares in the company, valued at approximately $1,362,768. This trade represents a 19.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Matthew J. Audette sold 1,110 shares of LPL Financial stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $330.01, for a total transaction of $366,311.10. Following the transaction, the chief financial officer directly owned 19,803 shares in the company, valued at $6,535,188.03. This trade represents a 5.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 2,667 shares of company stock valued at $855,871 in the last three months. 0.60% of the stock is currently owned by insiders.

LPL Financial Price Performance

LPLA stock opened at $288.49 on Monday. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 1.26. The firm has a 50-day moving average of $302.79 and a two-hundred day moving average of $331.74. LPL Financial Holdings Inc. has a 12 month low of $260.15 and a 12 month high of $403.58. The company has a market cap of $23.07 billion, a price-to-earnings ratio of 25.76, a PEG ratio of 0.59 and a beta of 0.50.

LPL Financial (NASDAQ:LPLA - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The financial services provider reported $5.60 EPS for the quarter, beating the consensus estimate of $5.49 by $0.11. The firm had revenue of $4.94 billion during the quarter, compared to analysts' expectations of $4.98 billion. LPL Financial had a return on equity of 31.26% and a net margin of 4.93%.The business's revenue for the quarter was up 34.6% on a year-over-year basis. During the same quarter last year, the firm earned $5.15 earnings per share. As a group, analysts forecast that LPL Financial Holdings Inc. will post 22.98 earnings per share for the current fiscal year.

LPL Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Thursday, May 21st were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $1.20 annualized dividend and a dividend yield of 0.4%. LPL Financial's payout ratio is presently 10.71%.

LPL Financial Profile

LPL Financial NASDAQ: LPLA is a U.S.-focused financial services firm that provides brokerage, custodial and advisory platforms to independent financial advisors, registered investment advisers and institutions. Operating primarily as an independent broker-dealer and custodian, the company supports a network of advisors with the operational, compliance and clearing infrastructure needed to manage client accounts and deliver investment advice outside of traditional wirehouse models.

The firm's product and service offerings include trade execution and clearing, custody services, retirement plan services, model portfolio and advisory platforms, wealth management technology, investment research and product access across equities, fixed income, mutual funds, exchange-traded funds and insurance and annuity solutions.

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