LPL Financial Holdings Inc. $LPLA Stock Position Lifted by Hsbc Holdings PLC

Key Points

• HSBC Holdings increased its LPL Financial stake by 60.6% in the second quarter, owning 70,358 shares valued at approximately $19.8 million. Institutional investors collectively hold 95.66% of LPL’s outstanding stock.
• LPL Financial reported stronger-than-expected quarterly results, with earnings of $5.84 per share and revenue of $5.19 billion, up 35.2% year over year. Shares opened at $350.22, down 2.5%, and analysts maintain a “Moderate Buy” consensus with an average price target of $405.79.
• The company paid a quarterly dividend of $0.30 per share, representing a $1.20 annualized payout and a 0.3% yield. Two directors sold shares recently, with insiders selling 5,735 shares worth about $2.02 million during the last quarter.

Hsbc Holdings PLC raised its stake in LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 60.6% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 70,358 shares of the financial services provider's stock after buying an additional 26,562 shares during the quarter. Hsbc Holdings PLC owned 0.09% of LPL Financial worth $19,782,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in LPLA. Osterweis Capital Management Inc. acquired a new stake in shares of LPL Financial during the 2nd quarter valued at $26,000. Clearstead Advisors LLC increased its stake in shares of LPL Financial by 3,650.0% in 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 during the last quarter. Core Wealth Advisors LLC purchased a new stake in shares of LPL Financial during the fourth quarter worth $36,000. Physician Wealth Advisors Inc. raised its holdings in shares of LPL Financial by 580.0% during the first quarter. Physician Wealth Advisors Inc. now owns 136 shares of the financial services provider's stock worth $41,000 after acquiring an additional 116 shares in the last quarter. Finally, Pinpoint Asset Management Singapore Pte. Ltd. acquired a new stake in LPL Financial during the fourth quarter valued at $50,000. Hedge funds and other institutional investors own 95.66% of the company's stock.

LPL Financial Stock Down 2.5%

Shares of LPL Financial stock opened at $350.22 on Wednesday. The stock has a market capitalization of $27.58 billion, a P/E ratio of 27.93, a PEG ratio of 0.60 and a beta of 0.48. The company has a quick ratio of 2.39, a current ratio of 2.39 and a debt-to-equity ratio of 1.30. The stock has a 50 day moving average price of $343.93 and a two-hundred day moving average price of $315.79. LPL Financial Holdings Inc. has a 12-month low of $260.15 and a 12-month high of $400.16.

LPL Financial (NASDAQ:LPLA - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The financial services provider reported $5.84 EPS for the quarter, beating analysts' consensus estimates of $5.39 by $0.45. LPL Financial had a net margin of 5.13% and a return on equity of 32.20%. The company had revenue of $5.19 billion for the quarter, compared to analyst estimates of $5.04 billion. During the same quarter last year, the firm posted $4.51 earnings per share. The company's quarterly revenue was up 35.2% compared to the same quarter last year. Equities analysts expect that LPL Financial Holdings Inc. will post 24.06 earnings per share for the current year.

LPL Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 0.3%. The ex-dividend date was Friday, August 14th. LPL Financial's dividend payout ratio (DPR) is 9.57%.

Analyst Upgrades and Downgrades

A number of brokerages have commented on LPLA. Wolfe Research restated an "outperform" rating and issued a $454.00 target price on shares of LPL Financial in a research note on Wednesday, August 12th. BMO Capital Markets raised their price target on LPL Financial from $300.00 to $390.00 and gave the stock an "outperform" rating in a research note on Monday, August 3rd. William Blair reiterated an "outperform" rating on shares of LPL Financial in a report on Thursday, June 4th. Keefe, Bruyette & Woods boosted their price target on LPL Financial from $365.00 to $390.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Finally, Barclays increased their price objective on LPL Financial from $394.00 to $401.00 and gave the stock an "overweight" rating in a report on Friday, July 31st. Twelve analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $405.79.

Insider Buying and Selling

In other news, Director Matthew Enyedi sold 1,000 shares of the firm's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $352.72, for a total value of $352,720.00. Following the sale, the director directly owned 13,121 shares of the company's stock, valued at approximately $4,628,039.12. This trade represents a 7.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Greg Gates sold 4,119 shares of LPL Financial stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $355.38, for a total value of $1,463,810.22. Following the completion of the transaction, the director owned 23,602 shares in the company, valued at $8,387,678.76. The trade was a 14.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 5,735 shares of company stock worth $2,020,845 in the last quarter. 0.60% of the stock is currently owned by company insiders.

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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