LPL Financial Holdings Inc. (NASDAQ:LPLA) Sees Significant Growth in Short Interest

Key Points

• LPL Financial Holdings experienced a significant 31.0% increase in short interest in August, rising to 2,830,000 shares, which represents approximately 3.6% of the company's total shares.
• The company reported better-than-expected quarterly earnings, with an EPS of $4.51, surpassing estimates by $0.30 and achieving a revenue increase of 30.8% year-over-year.
• LPL Financial has announced a quarterly dividend of $0.30 per share, reflecting a dividend yield of 0.4% and a payout ratio of 8.21%.

LPL Financial Holdings Inc. (NASDAQ:LPLA - Get Free Report) was the target of a large increase in short interest in August. As of August 15th, there was short interest totaling 2,830,000 shares, an increase of 31.0% from the July 31st total of 2,160,000 shares. Based on an average daily trading volume, of 750,800 shares, the short-interest ratio is currently 3.8 days. Approximately 3.6% of the company's shares are sold short. Approximately 3.6% of the company's shares are sold short. Based on an average daily trading volume, of 750,800 shares, the short-interest ratio is currently 3.8 days.

Insiders Place Their Bets

In related news, Director Greg Gates sold 1,500 shares of the company's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $338.21, for a total value of $507,315.00. Following the completion of the sale, the director owned 17,620 shares in the company, valued at $5,959,260.20. This represents a 7.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Aneri Jambusaria sold 80 shares of the company's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $361.25, for a total transaction of $28,900.00. Following the completion of the sale, the director owned 5,582 shares of the company's stock, valued at approximately $2,016,497.50. This represents a 1.41% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 4,580 shares of company stock valued at $1,671,235. 1.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On LPL Financial

Large investors have recently modified their holdings of the business. Summit Securities Group LLC acquired a new position in LPL Financial during the first quarter worth approximately $26,000. Osterweis Capital Management Inc. acquired a new position in LPL Financial during the second quarter worth approximately $26,000. Millstone Evans Group LLC increased its position in LPL Financial by 123.1% during the first quarter. Millstone Evans Group LLC now owns 87 shares of the financial services provider's stock worth $28,000 after buying an additional 48 shares during the last quarter. SBI Securities Co. Ltd. increased 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 worth $30,000 after buying an additional 43 shares during the last quarter. Finally, Private Trust Co. NA increased 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 worth $32,000 after buying an additional 68 shares during the last quarter. 95.66% of the stock is currently owned by institutional investors and hedge funds.

LPL Financial Stock Up 0.8%

Shares of LPL Financial stock traded up $2.93 during trading hours on Friday, reaching $350.64. 589,143 shares of the company's stock were exchanged, compared to its average volume of 770,953. The company has a 50 day moving average of $367.68 and a two-hundred day moving average of $354.04. LPL Financial has a fifty-two week low of $205.50 and a fifty-two week high of $403.58. The company has a current ratio of 3.22, a quick ratio of 3.22 and a debt-to-equity ratio of 1.41. The stock has a market cap of $28.05 billion, a P/E ratio of 23.98, a P/E/G ratio of 0.81 and a beta of 0.66.

LPL Financial (NASDAQ:LPLA - Get Free Report) last posted 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 in the prior year, the business posted $3.88 EPS. The company's quarterly revenue was up 30.8% on a year-over-year basis. On average, sell-side analysts forecast that LPL Financial will post 19.35 EPS for the current fiscal year.

LPL Financial Dividend Announcement

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

Analyst Ratings Changes

A number of research firms recently commented on LPLA. Barclays lowered their price objective on shares of LPL Financial from $463.00 to $460.00 and set an "overweight" rating for the company in a research report on Tuesday, September 2nd. 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 research note on Friday, July 11th. TD Cowen lowered shares of LPL Financial from a "strong-buy" rating to a "hold" rating and reduced their target price for the stock from $406.00 to $403.00 in a research note on Wednesday, July 9th. The Goldman Sachs Group began coverage on shares of LPL Financial in a research note on Friday. They issued a "buy" rating and a $405.00 target price for the company. Finally, Wall Street Zen lowered shares of LPL Financial from a "buy" rating to a "hold" rating in a research note on Saturday, June 14th. Ten investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $391.67.

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.