Vanguard Group Inc. Increases Holdings in LPL Financial Holdings Inc. (NASDAQ:LPLA)

Key Points

• Vanguard Group Inc. increased its stake in LPL Financial Holdings Inc. by 2.1%, now owning approximately 9.29% of the company, valued at around $2.41 billion.
• LPL Financial reported earnings of $4.51 EPS for the latest quarter, exceeding analyst expectations, with revenues of $3.84 billion, representing a year-over-year growth of 30.8%.
• The company announced a quarterly dividend of $0.30, with an annualized yield of 0.3%, set to be paid on August 29th, following an approval date of August 15th for shareholders.

Vanguard Group Inc. boosted its stake in LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) by 2.1% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 7,372,857 shares of the financial services provider's stock after purchasing an additional 154,200 shares during the period. Vanguard Group Inc. owned approximately 9.29% of LPL Financial worth $2,411,956,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in LPLA. Cerity Partners LLC grew its position in LPL Financial by 7.3% in the 4th quarter. Cerity Partners LLC now owns 11,848 shares of the financial services provider's stock worth $3,868,000 after purchasing an additional 802 shares during the period. Bank of Montreal Can grew its position in shares of LPL Financial by 46.9% during the 4th quarter. Bank of Montreal Can now owns 59,910 shares of the financial services provider's stock valued at $19,561,000 after acquiring an additional 19,126 shares during the period. APG Asset Management N.V. grew its position in shares of LPL Financial by 790.0% during the 4th quarter. APG Asset Management N.V. now owns 44,500 shares of the financial services provider's stock valued at $14,032,000 after acquiring an additional 39,500 shares during the period. Bessemer Group Inc. grew its position in shares of LPL Financial by 17.7% during the 4th quarter. Bessemer Group Inc. now owns 1,886 shares of the financial services provider's stock valued at $615,000 after acquiring an additional 284 shares during the period. Finally, Kennedy Capital Management LLC grew its position in shares of LPL Financial by 0.6% during the 4th quarter. Kennedy Capital Management LLC now owns 20,030 shares of the financial services provider's stock valued at $6,540,000 after acquiring an additional 111 shares during the period. Institutional investors own 95.66% of the company's stock.

LPL Financial Price Performance

LPLA stock traded down $27.69 during mid-day trading on Wednesday, hitting $345.73. The company had a trading volume of 681,879 shares, compared to its average volume of 814,756. The company has a market capitalization of $27.66 billion, a price-to-earnings ratio of 23.65, a P/E/G ratio of 0.87 and a beta of 0.66. LPL Financial Holdings Inc. has a 12-month low of $202.20 and a 12-month high of $403.58. The company has a quick ratio of 3.22, a current ratio of 3.22 and a debt-to-equity ratio of 1.41. The company has a 50-day moving average price of $377.18 and a 200 day moving average price of $356.00.

LPL Financial (NASDAQ:LPLA - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The financial services provider reported $4.51 EPS 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 net margin of 7.91% and a return on equity of 39.80%. The business's quarterly revenue was up 30.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.88 EPS. On average, research analysts anticipate that LPL Financial Holdings Inc. will post 19.35 earnings per share for the current year.

LPL Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Friday, August 15th. LPL Financial's dividend payout ratio is currently 8.21%.

Wall Street Analyst Weigh In

LPLA has been the subject of a number of recent research reports. Keefe, Bruyette & Woods boosted their price objective on shares of LPL Financial from $425.00 to $435.00 and gave the company an "outperform" rating in a research report on Monday, August 4th. TD Cowen downgraded shares of LPL Financial from a "strong-buy" rating to a "hold" rating and cut their price objective for the company from $406.00 to $403.00 in a research report on Wednesday, July 9th. Morgan Stanley reissued an "overweight" rating and set a $490.00 price objective (up previously from $450.00) on shares of LPL Financial in a research report on Tuesday, July 15th. JMP Securities boosted their price objective on shares of LPL Financial from $420.00 to $440.00 and gave the company a "market outperform" rating in a research report on Friday, May 9th. Finally, Wells Fargo & Company upped their target price on shares of LPL Financial from $402.00 to $420.00 and gave the stock an "overweight" rating in a report on Friday, July 11th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $383.58.

Insider Activity

In other news, Director Greg Gates sold 1,500 shares of the company's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $374.05, for a total transaction of $561,075.00. Following the sale, the director directly owned 19,120 shares in the company, valued at approximately $7,151,836. This represents a 7.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.70% of the company's stock.

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.