Pictet Asset Management Holding SA Reduces Stake in LPL Financial Holdings Inc. $LPLA

Key Points

• Pictet Asset Management Holding SA cut its LPL Financial stake by 10.4% in the first quarter, selling 4,633 shares and leaving it with 39,830 shares valued at about $12.0 million.
• LPL Financial posted better-than-expected earnings of $5.60 per share on revenue of $4.94 billion, while revenue rose 34.6% year over year and analysts now expect full-year EPS of 22.94.
• Wall Street remains generally bullish on LPLA, with a consensus “Moderate Buy” rating and an average price target of $398.86, even as some analysts trimmed their targets.

Pictet Asset Management Holding SA reduced its stake in shares of LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 10.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 39,830 shares of the financial services provider's stock after selling 4,633 shares during the quarter. Pictet Asset Management Holding SA's holdings in LPL Financial were worth $11,982,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of the stock. NewEdge Advisors LLC increased its position in shares of LPL Financial by 42.7% during the 1st quarter. NewEdge Advisors LLC now owns 3,525 shares of the financial services provider's stock valued at $1,153,000 after purchasing an additional 1,055 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in LPL Financial by 0.5% in the first quarter. Goldman Sachs Group Inc. now owns 209,126 shares of the financial services provider's stock worth $68,414,000 after buying an additional 1,089 shares during the last quarter. Woodline Partners LP purchased a new position in LPL Financial during the first quarter worth $1,636,000. Focus Partners Wealth boosted its stake in LPL Financial by 12.2% during the first quarter. Focus Partners Wealth now owns 4,360 shares of the financial services provider's stock worth $1,426,000 after buying an additional 473 shares during the period. Finally, Acadian Asset Management LLC bought a new position in LPL Financial during the first quarter valued at $121,000. 95.66% of the stock is owned by institutional investors.

LPL Financial Trading Up 0.7%

NASDAQ LPLA opened at $295.18 on Friday. The company's 50-day moving average price is $295.41 and its 200-day moving average price is $322.04. 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 stock has a market cap of $23.61 billion, a PE ratio of 26.36, a PEG ratio of 0.61 and a beta of 0.50. LPL Financial Holdings Inc. has a 12 month low of $260.15 and a 12 month high of $403.58.

LPL Financial (NASDAQ:LPLA - Get Free Report) last issued its earnings results on Thursday, April 30th. The financial services provider reported $5.60 earnings per share 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 business had revenue of $4.94 billion during the quarter, compared to analyst estimates of $4.98 billion. During the same period in the previous year, the company posted $5.15 EPS. LPL Financial's revenue was up 34.6% on a year-over-year basis. Equities research analysts forecast that LPL Financial Holdings Inc. will post 22.94 earnings per share for the current year.

LPL Financial Announces Dividend

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

Insider Activity

In other LPL Financial news, Director Aneri Jambusaria sold 308 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $306.00, for a total transaction of $94,248.00. Following the transaction, the director directly owned 6,415 shares in the company, valued at $1,962,990. This represents a 4.58% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 transaction 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,887 shares of company stock valued at $613,144 over the last 90 days. 0.60% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on LPLA shares. Jefferies Financial Group reduced their target price on shares of LPL Financial from $464.00 to $383.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Keefe, Bruyette & Woods began coverage on shares of LPL Financial in a report on Wednesday, April 8th. They set an "outperform" rating and a $350.00 price target on the stock. William Blair reissued an "outperform" rating on shares of LPL Financial in a research report on Thursday, June 4th. Morgan Stanley decreased their price objective on shares of LPL Financial from $447.00 to $374.00 and set an "overweight" rating for the company in a research note on Friday, April 10th. Finally, Barclays boosted their target price on LPL Financial from $369.00 to $412.00 and gave the company an "overweight" rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, LPL Financial has a consensus 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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