Geode Capital Management LLC Acquires 11,556 Shares of LPL Financial Holdings Inc. $LPLA

Key Points

• Geode Capital Management increased its LPL Financial stake by 0.7% in Q4, buying 11,556 shares and bringing its total holding to 1,554,814 shares worth about $553.9 million.
• LPL Financial reported better-than-expected quarterly earnings of $5.60 per share, though revenue of $4.94 billion came in slightly below estimates; revenue still rose 34.6% year over year.
• Wall Street remains generally constructive on the stock, with a Moderate Buy consensus and an average price target of $398.86, even as several analysts trimmed their targets.

Geode Capital Management LLC increased its holdings in LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 0.7% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,554,814 shares of the financial services provider's stock after acquiring an additional 11,556 shares during the period. Geode Capital Management LLC owned about 1.94% of LPL Financial worth $553,857,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of the company. King Luther Capital Management Corp lifted its stake in LPL Financial by 18.7% in the fourth quarter. King Luther Capital Management Corp now owns 7,546 shares of the financial services provider's stock valued at $2,695,000 after purchasing an additional 1,188 shares during the last quarter. Employees Retirement System of Texas lifted its stake in LPL Financial by 9.1% in the fourth quarter. Employees Retirement System of Texas now owns 176,200 shares of the financial services provider's stock valued at $62,933,000 after purchasing an additional 14,700 shares during the last quarter. Malaga Cove Capital LLC lifted its stake in LPL Financial by 6.5% in the fourth quarter. Malaga Cove Capital LLC now owns 825 shares of the financial services provider's stock valued at $295,000 after purchasing an additional 50 shares during the last quarter. Cary Street Partners Investment Advisory LLC purchased a new position in LPL Financial in the fourth quarter valued at approximately $127,000. Finally, Cary Street Partners Financial LLC purchased a new position in LPL Financial in the fourth quarter valued at approximately $344,000. Hedge funds and other institutional investors own 95.66% of the company's stock.

LPL Financial Price Performance

Shares of NASDAQ LPLA opened at $273.77 on Friday. The firm has a market capitalization of $21.90 billion, a P/E ratio of 24.44, a P/E/G ratio of 0.56 and a beta of 0.57. The company has a quick ratio of 2.56, a current ratio of 2.56 and a debt-to-equity ratio of 1.26. The stock's 50-day simple moving average is $304.18 and its two-hundred day simple moving average is $335.18. LPL Financial Holdings Inc. has a twelve month low of $260.15 and a twelve month high of $403.58.

LPL Financial (NASDAQ:LPLA - Get Free Report) last issued its quarterly earnings data 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 company had revenue of $4.94 billion during the quarter, compared to analyst estimates of $4.98 billion. LPL Financial had a return on equity of 31.26% and a net margin of 4.93%.LPL Financial's revenue was up 34.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $5.15 earnings per share. As a group, equities analysts anticipate that LPL Financial Holdings Inc. will post 22.98 EPS for the current fiscal year.

LPL Financial Dividend Announcement

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

Insider Transactions at LPL Financial

In other news, Director Marc Eliot Cohen sold 2,212 shares of the firm's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $308.75, for a total transaction of $682,955.00. Following the transaction, the director directly owned 5,488 shares of the company's stock, valued at approximately $1,694,420. This trade represents a 28.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Matthew J. Audette sold 1,110 shares of the firm's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $330.01, for a total value 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 have sold 4,879 shares of company stock worth $1,538,826 over the last ninety days. Insiders own 0.60% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Jefferies Financial Group dropped their price objective on LPL Financial from $464.00 to $383.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Citizens Jmp reiterated a "market outperform" rating and issued a $500.00 price objective on shares of LPL Financial in a research note on Monday, April 6th. JPMorgan Chase & Co. dropped their price objective on LPL Financial from $396.00 to $390.00 and set an "overweight" rating on the stock in a research note on Friday, May 1st. Morgan Stanley dropped their price objective on LPL Financial from $447.00 to $374.00 and set an "overweight" rating on the stock in a research note on Friday, April 10th. Finally, TD Cowen dropped their target price on LPL Financial from $330.00 to $326.00 and set a "hold" rating on the stock in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $398.86.

About LPL Financial

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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