LPL Financial Holdings Inc. $LPLA Holdings Lowered by Boston Partners

Key Points

• Boston Partners reduced its stake in LPL Financial by 3.2% in the fourth quarter, selling 119,008 shares but still holding 3.55 million shares worth about $1.27 billion. LPL remains Boston Partners’ third-largest holding.
• LPL Financial reported better-than-expected earnings for the latest quarter, posting EPS of $5.60 versus the $5.49 estimate. Revenue rose 34.6% year over year to $4.94 billion.
• Wall Street remains mostly positive on the stock, with an average “Moderate Buy” rating and a consensus price target of $398.86. The company also recently paid a quarterly dividend of $0.30 per share.

Boston Partners cut its holdings in shares of LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 3.2% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 3,550,318 shares of the financial services provider's stock after selling 119,008 shares during the quarter. LPL Financial accounts for approximately 1.3% of Boston Partners' holdings, making the stock its 3rd biggest holding. Boston Partners owned approximately 4.44% of LPL Financial worth $1,268,832,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. Osterweis Capital Management Inc. purchased a new position in shares of LPL Financial during the second quarter worth approximately $26,000. Clearstead Advisors LLC raised its stake in shares of LPL Financial by 3,650.0% during the fourth quarter. Clearstead Advisors LLC now owns 75 shares of the financial services provider's stock worth $27,000 after acquiring an additional 73 shares in the last quarter. Steigerwald Gordon & Koch Inc. raised its stake in shares of LPL Financial by 550.0% during the fourth quarter. Steigerwald Gordon & Koch Inc. now owns 78 shares of the financial services provider's stock worth $28,000 after acquiring an additional 66 shares in the last quarter. Core Wealth Advisors LLC purchased a new position in shares of LPL Financial during the fourth quarter worth approximately $36,000. Finally, Pinpoint Asset Management Singapore Pte. Ltd. purchased a new position in shares of LPL Financial during the fourth quarter worth approximately $50,000. 95.66% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, CFO Matthew J. Audette sold 1,110 shares of the business's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $330.01, for a total transaction of $366,311.10. Following the transaction, the chief financial officer owned 19,803 shares in the company, valued at $6,535,188.03. The trade was a 5.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.60% of the stock is owned by corporate insiders.

LPL Financial Stock Up 3.6%

Shares of NASDAQ:LPLA opened at $295.66 on Friday. LPL Financial Holdings Inc. has a 1 year low of $260.15 and a 1 year high of $403.58. The company has a market cap of $23.65 billion, a PE ratio of 26.40, a P/E/G ratio of 0.59 and a beta of 0.50. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.56 and a quick ratio of 2.56. The stock's 50-day moving average is $301.82 and its 200 day moving average is $329.73.

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

LPL Financial Dividend Announcement

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

Analysts Set New Price Targets

A number of equities analysts have commented on the company. William Blair reaffirmed an "outperform" rating on shares of LPL Financial in a research note on Thursday, June 4th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of LPL Financial in a research note on Monday, April 27th. TD Cowen decreased their price target on LPL Financial from $330.00 to $326.00 and set a "hold" rating on the stock in a research note on Friday, May 1st. Keefe, Bruyette & Woods assumed coverage on LPL Financial in a research note on Wednesday, April 8th. They issued an "outperform" rating and a $350.00 price target on the stock. Finally, JPMorgan Chase & Co. decreased their price target 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. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price 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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