Egerton Capital UK LLP Purchases New Position in LPL Financial Holdings Inc. $LPLA

Key Points

• Egerton Capital UK LLP opened a new position in LPL Financial in the fourth quarter, buying 254,813 shares worth about $91.0 million. The stake represented about 1.0% of Egerton’s holdings and roughly 0.32% of LPL Financial.
• LPL Financial reported better-than-expected Q1 earnings, posting EPS of $5.60 versus estimates of $5.49, though revenue came in slightly below forecasts at $4.94 billion. Revenue still rose 34.6% year over year, and analysts expect full-year EPS of 22.98.
• The company paid a quarterly dividend of $0.30 per share, or $1.20 annualized, for a yield of about 0.4%. Meanwhile, analysts remain broadly constructive, with an average rating of “Moderate Buy” and an average target price of $398.86.

Egerton Capital UK LLP purchased a new stake in LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 254,813 shares of the financial services provider's stock, valued at approximately $91,012,000. LPL Financial makes up 1.0% of Egerton Capital UK LLP's holdings, making the stock its 23rd biggest holding. Egerton Capital UK LLP owned about 0.32% of LPL Financial as of its most recent filing with the SEC.

A number of other large investors have also recently added to or reduced their stakes in the stock. Capital World Investors boosted its position in LPL Financial by 37.9% during the fourth quarter. Capital World Investors now owns 3,625,357 shares of the financial services provider's stock worth $1,294,869,000 after purchasing an additional 996,806 shares during the period. Los Angeles Capital Management LLC bought a new stake in LPL Financial during the fourth quarter worth approximately $122,000. Havemeyer Place LP bought a new stake in LPL Financial during the fourth quarter worth approximately $388,000. Parallel Advisors LLC boosted its position in LPL Financial by 2.1% during the fourth quarter. Parallel Advisors LLC now owns 2,528 shares of the financial services provider's stock worth $903,000 after purchasing an additional 51 shares during the period. Finally, TruNorth Capital Management LLC boosted its position in LPL Financial by 580.4% during the fourth quarter. TruNorth Capital Management LLC now owns 1,109 shares of the financial services provider's stock worth $396,000 after purchasing an additional 946 shares during the period. Institutional investors own 95.66% of the company's stock.

LPL Financial Price Performance

Shares of LPLA stock opened at $288.49 on Monday. The stock has a market cap of $23.07 billion, a P/E ratio of 25.76, a price-to-earnings-growth ratio of 0.59 and a beta of 0.50. LPL Financial Holdings Inc. has a one year low of $260.15 and a one year high of $403.58. The stock has a fifty day moving average price of $302.79 and a 200 day moving average price of $331.74. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.56 and a quick ratio of 2.56.

LPL Financial (NASDAQ:LPLA - Get Free Report) last issued its earnings results on Thursday, April 30th. The financial services provider reported $5.60 EPS for the quarter, topping 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%.LPL Financial's quarterly revenue was up 34.6% compared to the same quarter last year. During the same period last year, the business earned $5.15 earnings per share. Analysts predict that LPL Financial Holdings Inc. will post 22.98 earnings per share for the current year.

LPL Financial Announces Dividend

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

Insider Buying and Selling at LPL Financial

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

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Barclays upped their target price on LPL Financial from $369.00 to $412.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. Jefferies Financial Group cut their price target on LPL Financial from $464.00 to $383.00 and set a "buy" rating for the company in a report on Monday, April 6th. JPMorgan Chase & Co. cut their price target on LPL Financial from $396.00 to $390.00 and set an "overweight" rating for the company in a report on Friday, May 1st. William Blair reiterated an "outperform" rating on shares of LPL Financial in a report on Thursday. Finally, UBS Group upped their price target on LPL Financial from $380.00 to $395.00 and gave the stock a "buy" rating in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $398.86.

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.

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.