Capital World Investors Has $874.49 Million Stock Position in LPL Financial Holdings Inc. $LPLA

Key Points

• Capital World Investors boosted its stake in LPL Financial by 15,960.1% in Q3, purchasing 2,612,184 additional shares to own 2,628,551 shares (3.28% of the company) valued at about $874.49 million.
• LPL beat Q4 expectations, reporting $5.23 EPS vs. $4.82 expected and $4.93B in revenue (up 8.4% y/y); the stock trades around a $24.7B market cap with a P/E of 28 and a MarketBeat consensus rating of "Moderate Buy" and $428.71 target.
• The company announced a quarterly dividend of $0.30 per share (annualized $1.20, yield 0.4%, ex-dividend March 10), while insiders (including the CFO and a director) recently sold a combined ~3,690 shares, leaving insiders owning 0.70% of the stock.

Capital World Investors raised its stake in shares of LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 15,960.1% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,628,551 shares of the financial services provider's stock after buying an additional 2,612,184 shares during the period. Capital World Investors owned 3.28% of LPL Financial worth $874,493,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Osterweis Capital Management Inc. bought a new stake in shares of LPL Financial in the second quarter valued at about $26,000. SJS Investment Consulting Inc. boosted its stake in shares of LPL Financial by 912.5% in the 3rd quarter. SJS Investment Consulting Inc. now owns 81 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 73 shares in the last quarter. Chung Wu Investment Group LLC bought a new stake in LPL Financial during the third quarter worth about $27,000. Eastern Bank grew its stake in LPL Financial by 72.0% during the third quarter. Eastern Bank now owns 86 shares of the financial services provider's stock worth $29,000 after buying an additional 36 shares during the last quarter. Finally, SBI Securities Co. Ltd. increased its holdings in shares of LPL Financial by 116.2% during the second quarter. SBI Securities Co. Ltd. now owns 80 shares of the financial services provider's stock worth $30,000 after buying an additional 43 shares in the last quarter. 95.66% of the stock is currently owned by institutional investors and hedge funds.

LPL Financial Stock Performance

Shares of LPL Financial stock opened at $308.30 on Wednesday. LPL Financial Holdings Inc. has a one year low of $262.83 and a one year high of $403.58. The company has a debt-to-equity ratio of 1.36, a current ratio of 2.45 and a quick ratio of 2.45. The stock's 50-day moving average is $349.32 and its 200-day moving average is $350.97. The firm has a market cap of $24.69 billion, a price-to-earnings ratio of 28.00, a price-to-earnings-growth ratio of 0.69 and a beta of 0.59.

LPL Financial (NASDAQ:LPLA - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The financial services provider reported $5.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.82 by $0.41. LPL Financial had a return on equity of 34.19% and a net margin of 5.08%.The company had revenue of $4.93 billion for the quarter, compared to analysts' expectations of $4.90 billion. During the same quarter in the prior year, the business posted $4.25 EPS. The business's revenue was up 8.4% compared to the same quarter last year. Equities analysts predict that LPL Financial Holdings Inc. will post 19.35 earnings per share for the current fiscal year.

LPL Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Tuesday, March 10th. This represents a $1.20 annualized dividend and a yield of 0.4%. LPL Financial's dividend payout ratio is currently 10.90%.

Analysts Set New Price Targets

LPLA has been the topic of several recent analyst reports. Morgan Stanley reduced their target price on LPL Financial from $462.00 to $447.00 and set an "overweight" rating on the stock in a report on Monday, December 22nd. Citigroup reissued a "market outperform" rating on shares of LPL Financial in a research note on Tuesday, February 3rd. Wolfe Research set a $478.00 target price on LPL Financial in a report on Friday, January 30th. TD Cowen cut their price target on LPL Financial from $399.00 to $378.00 and set a "hold" rating for the company in a report on Friday, January 30th. Finally, Barclays decreased their price objective on shares of LPL Financial from $444.00 to $434.00 and set an "overweight" rating on the stock in a report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $428.71.

Insider Activity at LPL Financial

In other news, CFO Matthew J. Audette sold 1,581 shares of the firm's stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $320.50, for a total transaction of $506,710.50. Following the completion of the transaction, the chief financial officer owned 21,382 shares of the company's stock, valued at approximately $6,852,931. This trade represents a 6.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Matthew Enyedi sold 2,109 shares of the firm's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $320.15, for a total value of $675,196.35. Following the transaction, the director owned 14,121 shares of the company's stock, valued at $4,520,838.15. This trade represents a 12.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.70% of the company's stock.

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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