LPL Financial (NASDAQ:LPLA) Announces Earnings Results, Beats Expectations By $0.30 EPS

Key Points

• LPL Financial reported quarterly earnings of $4.51 EPS, exceeding expectations by $0.30, with revenues of $3.84 billion up 30.8% year-over-year.
• The company's stock fell 6.5% to $369.91 despite the better-than-expected earnings report, impacted by a trading volume significantly higher than its average.
• LPL Financial announced a quarterly dividend of $0.30, with a 0.3% annualized yield, and has a low payout ratio of 8.21%.

LPL Financial (NASDAQ:LPLA - Get Free Report) issued its quarterly earnings results on Thursday. The financial services provider reported $4.51 EPS for the quarter, topping the consensus estimate of $4.21 by $0.30, Zacks reports. The firm had revenue of $3.84 billion during the quarter, compared to analyst estimates of $3.77 billion. LPL Financial had a net margin of 7.91% and a return on equity of 47.01%. LPL Financial's revenue for the quarter was up 30.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $3.88 earnings per share.

LPL Financial Stock Down 6.5%

LPLA stock traded down $25.82 during trading on Friday, reaching $369.91. The stock had a trading volume of 3,277,005 shares, compared to its average volume of 766,592. The company has a current ratio of 2.31, a quick ratio of 2.31 and a debt-to-equity ratio of 1.82. The firm has a fifty day moving average price of $378.53 and a 200 day moving average price of $355.03. The company has a market capitalization of $29.59 billion, a P/E ratio of 25.30, a PEG ratio of 0.91 and a beta of 0.66. LPL Financial has a 1-year low of $187.19 and a 1-year high of $403.58.

LPL Financial Announces Dividend

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

Wall Street Analyst Weigh In

LPLA has been the subject of several research reports. Wells Fargo & Company boosted their price objective on shares of LPL Financial from $402.00 to $420.00 and gave the company an "overweight" rating in a research note on Friday, July 11th. Morgan Stanley reaffirmed an "overweight" rating and issued a $490.00 price objective (up from $450.00) on shares of LPL Financial in a research note on Tuesday, July 15th. Barclays boosted their target price on LPL Financial from $460.00 to $463.00 and gave the stock an "overweight" rating in a report on Friday. JMP Securities raised their price target on shares of LPL Financial from $420.00 to $440.00 and gave the company a "market outperform" rating in a report on Friday, May 9th. Finally, Redburn Atlantic upgraded shares of LPL Financial from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $420.00 to $460.00 in a research note on Monday, June 9th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and ten have given a buy rating to the company. According to MarketBeat, LPL Financial currently has an average rating of "Moderate Buy" and an average price target of $381.08.

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 dated Thursday, July 3rd. The stock was sold at an average price of $382.63, for a total value of $573,945.00. Following the transaction, the director owned 20,620 shares in the company, valued at approximately $7,889,830.60. The trade was a 6.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On LPL Financial

A number of hedge funds have recently bought and sold shares of LPLA. Goldman Sachs Group Inc. boosted its stake in shares of LPL Financial by 0.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 209,126 shares of the financial services provider's stock valued at $68,414,000 after buying an additional 1,089 shares during the last quarter. Woodline Partners LP acquired a new stake in LPL Financial in the first quarter valued at $1,636,000. Focus Partners Wealth boosted its stake in LPL Financial by 12.2% during the 1st quarter. Focus Partners Wealth now owns 4,360 shares of the financial services provider's stock valued at $1,426,000 after acquiring an additional 473 shares during the last quarter. NewEdge Advisors LLC grew its holdings in LPL Financial by 42.7% during the 1st quarter. NewEdge Advisors LLC now owns 3,525 shares of the financial services provider's stock worth $1,153,000 after acquiring an additional 1,055 shares in the last quarter. Finally, Acadian Asset Management LLC acquired a new position in LPL Financial during the 1st quarter worth $121,000. Institutional investors and hedge funds own 95.66% of the company's stock.

About LPL Financial

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.

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