Northwestern Mutual Wealth Management Co. Raises Position in LPL Financial Holdings Inc. $LPLA

Key Points

• Northwestern Mutual Wealth Management increased its stake in LPL Financial by 56.6% in the fourth quarter, bringing its holdings to 158,783 shares valued at about $56.7 million.
• LPL Financial reported better-than-expected quarterly earnings of $5.60 per share, though revenue of $4.94 billion came in slightly below analyst estimates; revenue still rose 34.6% year over year.
• The company announced a quarterly dividend of $0.30 per share, and analysts remain broadly positive with a consensus rating of “Moderate Buy” and an average price target of $398.86.

Northwestern Mutual Wealth Management Co. grew its position in LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 56.6% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 158,783 shares of the financial services provider's stock after buying an additional 57,362 shares during the period. Northwestern Mutual Wealth Management Co. owned approximately 0.20% of LPL Financial worth $56,713,000 as of its most recent SEC filing.

Several other large investors have also bought and sold shares of LPLA. WCM Investment Management LLC grew its position in LPL Financial by 0.7% during the 3rd quarter. WCM Investment Management LLC now owns 1,742,991 shares of the financial services provider's stock worth $593,663,000 after purchasing an additional 12,214 shares during the period. Independent Advisor Alliance grew its position in LPL Financial by 41.5% during the 3rd quarter. Independent Advisor Alliance now owns 5,341 shares of the financial services provider's stock worth $1,777,000 after purchasing an additional 1,566 shares during the period. Mutual of America Capital Management LLC grew its position in LPL Financial by 116.6% during the 3rd quarter. Mutual of America Capital Management LLC now owns 5,568 shares of the financial services provider's stock worth $1,852,000 after purchasing an additional 2,997 shares during the period. Coronation Fund Managers Ltd. grew its position in LPL Financial by 24.5% during the 3rd quarter. Coronation Fund Managers Ltd. now owns 187,973 shares of the financial services provider's stock worth $62,537,000 after purchasing an additional 36,950 shares during the period. Finally, Munich Reinsurance Co Stock Corp in Munich acquired a new stake in LPL Financial during the 3rd quarter worth about $1,975,000. 95.66% of the stock is owned by hedge funds and other institutional investors.

LPL Financial Price Performance

Shares of NASDAQ LPLA opened at $299.73 on Monday. LPL Financial Holdings Inc. has a 12-month low of $281.51 and a 12-month high of $403.58. The stock has a market cap of $23.97 billion, a PE ratio of 26.76, a P/E/G ratio of 0.62 and a beta of 0.57. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 1.26. The company has a 50-day moving average of $307.77 and a 200 day moving average of $340.76.

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

LPL Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Thursday, May 21st will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend 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%.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on LPLA shares. UBS Group upped their price objective on shares of LPL Financial from $380.00 to $395.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. JPMorgan Chase & Co. decreased their price objective on shares of LPL Financial from $396.00 to $390.00 and set an "overweight" rating for the company in a research report on Friday, May 1st. Jefferies Financial Group decreased their price objective on shares of LPL Financial from $464.00 to $383.00 and set a "buy" rating for the company in a research report on Monday, April 6th. Citigroup reiterated a "market outperform" rating on shares of LPL Financial in a research report on Tuesday, February 3rd. Finally, TD Cowen decreased their price objective on shares of LPL Financial from $330.00 to $326.00 and set a "hold" rating for the company in a research report on Friday, May 1st. One investment 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 company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $398.86.

Insider Activity at LPL Financial

In other LPL Financial news, Director Marc Eliot Cohen sold 1,088 shares of the business's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $309.72, for a total value of $336,975.36. Following the transaction, the director directly owned 4,400 shares in the company, valued at $1,362,768. The trade was a 19.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, 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 completion of 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 8,569 shares of company stock valued at $2,720,733. Corporate insiders own 0.60% of the company's stock.

LPL Financial Profile

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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