Baird Financial Group Inc. Cuts Stock Position in LPL Financial Holdings Inc. $LPLA

Key Points

• Baird Financial Group Inc. reduced its stake in LPL Financial Holdings Inc. by 28.8%, selling 2,428 shares, leaving them with 6,010 shares valued at nearly $1.97 million.
• LPL Financial recently reported a strong quarterly earnings of $4.51 per share, exceeding estimates, with a revenue increase of 30.8% year-over-year.
• The company declared a quarterly dividend of $0.30 per share, reflecting a small yield of 0.4% and a low payout ratio of 8.21%.

Baird Financial Group Inc. trimmed its holdings in shares of LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 28.8% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 6,010 shares of the financial services provider's stock after selling 2,428 shares during the period. Baird Financial Group Inc.'s holdings in LPL Financial were worth $1,966,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently modified their holdings of LPLA. Benjamin Edwards Inc. bought a new position in shares of LPL Financial during the 4th quarter worth approximately $250,000. Cetera Investment Advisers increased its holdings in shares of LPL Financial by 1.4% during the fourth quarter. Cetera Investment Advisers now owns 14,653 shares of the financial services provider's stock valued at $4,784,000 after acquiring an additional 201 shares in the last quarter. Fiduciary Trust Co increased its holdings in shares of LPL Financial by 7.3% during the fourth quarter. Fiduciary Trust Co now owns 1,860 shares of the financial services provider's stock valued at $607,000 after acquiring an additional 127 shares in the last quarter. Focus Partners Wealth increased its holdings in shares of LPL Financial by 13.9% during the fourth quarter. Focus Partners Wealth now owns 3,887 shares of the financial services provider's stock valued at $1,269,000 after acquiring an additional 473 shares in the last quarter. Finally, Hudson Bay Capital Management LP increased its holdings in shares of LPL Financial by 109.0% during the fourth quarter. Hudson Bay Capital Management LP now owns 185,935 shares of the financial services provider's stock valued at $60,710,000 after acquiring an additional 96,988 shares in the last quarter. 95.66% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

LPLA has been the subject of several recent research reports. The Goldman Sachs Group initiated coverage on LPL Financial in a report on Friday. They set a "buy" rating and a $405.00 price objective for the company. Morgan Stanley restated an "overweight" rating and set a $490.00 price objective (up previously from $450.00) on shares of LPL Financial in a report on Tuesday, July 15th. Barclays decreased their price objective on LPL Financial from $463.00 to $460.00 and set an "overweight" rating for the company in a report on Tuesday, September 2nd. Wells Fargo & Company boosted their price objective on LPL Financial from $402.00 to $420.00 and gave the company an "overweight" rating in a report on Friday, July 11th. Finally, Keefe, Bruyette & Woods boosted their price objective on LPL Financial from $425.00 to $435.00 and gave the company an "outperform" rating in a report on Monday, August 4th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $391.67.

LPL Financial Stock Performance

LPLA stock traded up $2.93 during midday trading on Friday, hitting $350.64. The company's stock had a trading volume of 589,143 shares, compared to its average volume of 770,953. The stock's 50-day moving average price is $367.68 and its 200 day moving average price is $354.04. The company has a quick ratio of 3.22, a current ratio of 3.22 and a debt-to-equity ratio of 1.41. LPL Financial Holdings Inc. has a 1 year low of $205.50 and a 1 year high of $403.58. The stock has a market cap of $28.05 billion, a price-to-earnings ratio of 23.98, a PEG ratio of 0.81 and a beta of 0.66.

LPL Financial (NASDAQ:LPLA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The financial services provider reported $4.51 earnings per share for the quarter, topping the consensus estimate of $4.21 by $0.30. The business had revenue of $3.84 billion for the quarter, compared to analysts' expectations of $3.77 billion. LPL Financial had a return on equity of 39.80% and a net margin of 7.91%.The business's revenue was up 30.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.88 earnings per share. On average, equities analysts forecast that LPL Financial Holdings Inc. will post 19.35 EPS for the current year.

LPL Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 15th were paid a $0.30 dividend. The ex-dividend date was Friday, August 15th. This represents a $1.20 annualized dividend and a dividend yield of 0.3%. LPL Financial's payout ratio is presently 8.21%.

Insiders Place Their Bets

In related news, Director Greg Gates sold 1,500 shares of the business's stock in a transaction on Friday, September 5th. The stock was sold at an average price of $338.21, for a total transaction of $507,315.00. Following the sale, the director directly owned 17,620 shares in the company, valued at approximately $5,959,260.20. The trade was a 7.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Aneri Jambusaria sold 80 shares of the company's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $361.25, for a total value of $28,900.00. Following the completion of the transaction, the director owned 5,582 shares in the company, valued at $2,016,497.50. This represents a 1.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 4,580 shares of company stock worth $1,671,235. 1.30% of the stock is currently owned by corporate insiders.

LPL Financial Company Profile

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.