Eminence Capital LP Lowers Stock Position in LPL Financial Holdings Inc. $LPLA

Key Points

• Eminence Capital LP reduced its stake in LPL Financial Holdings by 6.4%, holding approximately $171.13 million in shares by the end of the first quarter, making it the fund's 12th largest investment.
• Several institutional investors, including Millstone Evans Group and Private Trust Co. NA, increased their positions in LPL Financial during the same period, reflecting strong institutional interest in the stock.
• LPL Financial reported a 30.8% year-over-year increase in revenue for the latest quarter, with earnings per share exceeding analysts’ expectations at $4.51.

Eminence Capital LP lowered its stake in LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 6.4% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 523,113 shares of the financial services provider's stock after selling 35,534 shares during the quarter. LPL Financial accounts for approximately 2.9% of Eminence Capital LP's portfolio, making the stock its 12th largest position. Eminence Capital LP owned approximately 0.65% of LPL Financial worth $171,131,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of the stock. Boothbay Fund Management LLC bought a new stake in shares of LPL Financial in the 1st quarter valued at $9,515,000. Bain Capital Public Equity Management II LLC bought a new stake in LPL Financial during the 1st quarter valued at $3,045,000. Bain Capital Public Equity LP bought a new stake in LPL Financial during the 1st quarter valued at $226,000. Alliancebernstein L.P. increased its stake in LPL Financial by 550.5% during the 1st quarter. Alliancebernstein L.P. now owns 759,206 shares of the financial services provider's stock valued at $248,367,000 after purchasing an additional 642,503 shares in the last quarter. Finally, AQR Capital Management LLC increased its stake in LPL Financial by 34.8% during the 1st quarter. AQR Capital Management LLC now owns 58,059 shares of the financial services provider's stock valued at $18,993,000 after purchasing an additional 14,977 shares in the last quarter. Institutional investors own 95.66% of the company's stock.

LPL Financial Stock Performance

Shares of NASDAQ:LPLA traded down $27.05 during midday trading on Friday, reaching $332.99. The company had a trading volume of 1,643,770 shares, compared to its average volume of 622,539. The company's 50 day moving average price is $371.13 and its 200 day moving average price is $354.85. The company has a current ratio of 3.22, a quick ratio of 3.22 and a debt-to-equity ratio of 1.41. The stock has a market cap of $26.64 billion, a P/E ratio of 22.78, a P/E/G ratio of 0.78 and a beta of 0.66. LPL Financial Holdings Inc. has a 52-week low of $204.41 and a 52-week high of $403.58.

LPL Financial (NASDAQ:LPLA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The financial services provider reported $4.51 EPS for the quarter, beating the consensus estimate of $4.21 by $0.30. The business had revenue of $3.84 billion for the quarter, compared to the consensus estimate of $3.77 billion. LPL Financial had a net margin of 7.91% and a return on equity of 39.80%. The company's revenue was up 30.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.88 earnings per share. As a group, sell-side analysts anticipate that LPL Financial Holdings Inc. will post 19.35 EPS for the current fiscal year.

LPL Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 15th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, August 15th. This represents a $1.20 annualized dividend and a yield of 0.4%. LPL Financial's dividend payout ratio is 8.21%.

Insider Activity

In other news, Director Aneri Jambusaria sold 80 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $361.25, for a total value of $28,900.00. Following the sale, the director directly owned 5,582 shares of the company's stock, valued at approximately $2,016,497.50. This represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Greg Gates sold 1,500 shares of the stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $374.05, for a total transaction of $561,075.00. Following the completion of the sale, the director directly owned 19,120 shares in the company, valued at approximately $7,151,836. The trade was a 7.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 3,080 shares of company stock worth $1,163,920. Insiders own 1.30% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Morgan Stanley restated an "overweight" rating and set a $490.00 price target (up previously from $450.00) on shares of LPL Financial in a research note on Tuesday, July 15th. Wall Street Zen lowered shares of LPL Financial from a "buy" rating to a "hold" rating in a research note on Saturday, June 14th. Keefe, Bruyette & Woods upped their target price on shares of LPL Financial from $425.00 to $435.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Redburn Atlantic upgraded shares of LPL Financial from a "neutral" rating to a "buy" rating and upped their target price for the stock from $420.00 to $460.00 in a research note on Monday, June 9th. Finally, TD Cowen lowered shares of LPL Financial from a "strong-buy" rating to a "hold" rating and reduced their target price for the stock from $406.00 to $403.00 in a research note on Wednesday, July 9th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $383.33.

About LPL Financial

LPL Financial Holdings Inc, together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at enterprises in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, fixed income, alternative investments, retirement and 529 education savings plans, and insurance.