LPL Financial Holdings Inc. (NASDAQ:LPLA) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• LPL Financial Holdings Inc. has received an average rating of "Moderate Buy" from twelve brokerages, with ten analysts issuing buy recommendations.
• The average 12-month target price set by brokerages for LPL Financial is $383.58, reflecting varying assessments by analysts.
• Insider trading activity shows Director Greg Gates sold 1,500 shares at $374.05, representing a 7.27% decrease in his ownership of the stock.

Shares of LPL Financial Holdings Inc. (NASDAQ:LPLA - Get Free Report) have been given an average rating of "Moderate Buy" by the twelve ratings firms that are covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell rating, one has issued a hold rating and ten have issued a buy rating on the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $383.5833.

LPLA has been the subject of several analyst reports. TD Cowen downgraded LPL Financial from a "strong-buy" rating to a "hold" rating and dropped their price target for the stock from $406.00 to $403.00 in a research note on Wednesday, July 9th. Wall Street Zen cut LPL Financial from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. Keefe, Bruyette & Woods boosted their price target on shares of LPL Financial from $425.00 to $435.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Morgan Stanley reaffirmed an "overweight" rating and set a $490.00 price objective (up from $450.00) on shares of LPL Financial in a research report on Tuesday, July 15th. Finally, Redburn Atlantic upgraded LPL Financial from a "neutral" rating to a "buy" rating and lifted their target price for the company from $420.00 to $460.00 in a report on Monday, June 9th.

LPL Financial Stock Performance

LPL Financial stock traded down $0.35 during midday trading on Friday, reaching $364.48. 249,319 shares of the stock traded hands, compared to its average volume of 821,888. LPL Financial has a fifty-two week low of $204.41 and a fifty-two week high of $403.58. The firm has a market cap of $29.16 billion, a price-to-earnings ratio of 24.93, a PEG ratio of 0.85 and a beta of 0.66. The firm has a fifty day moving average price of $371.97 and a two-hundred day moving average price of $355.47. The company has a current ratio of 3.22, a quick ratio of 3.22 and a debt-to-equity ratio of 1.41.

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

LPL Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Friday, August 15th were issued a $0.30 dividend. The ex-dividend date was Friday, August 15th. This represents a $1.20 dividend on an annualized basis and a yield of 0.3%. LPL Financial's dividend payout ratio is currently 8.21%.

Insider Buying and Selling at LPL Financial

In related news, Director Greg Gates sold 1,500 shares of the business's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $374.05, for a total value of $561,075.00. Following the sale, the director directly owned 19,120 shares of the company's stock, valued at approximately $7,151,836. The trade was a 7.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On LPL Financial

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Summit Securities Group LLC purchased a new position in LPL Financial in the 1st quarter worth approximately $26,000. Osterweis Capital Management Inc. bought a new stake in LPL Financial during the 2nd quarter valued at about $26,000. Millstone Evans Group LLC grew its stake in shares of LPL Financial by 123.1% in the first quarter. Millstone Evans Group LLC now owns 87 shares of the financial services provider's stock worth $28,000 after acquiring an additional 48 shares during the period. SBI Securities Co. Ltd. grew its position in LPL Financial by 116.2% during the second quarter. SBI Securities Co. Ltd. now owns 80 shares of the financial services provider's stock valued at $30,000 after buying an additional 43 shares during the period. Finally, Private Trust Co. NA grew its position in LPL Financial by 234.5% during the first quarter. Private Trust Co. NA now owns 97 shares of the financial services provider's stock valued at $32,000 after buying an additional 68 shares during the period. 95.66% of the stock is currently owned by institutional investors and hedge funds.

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.