LPL Financial (NASDAQ:LPLA) Announces Quarterly Earnings Results

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) released its earnings results on Thursday. The financial services provider reported $4.51 EPS for the quarter, beating the consensus estimate of $4.21 by $0.30, Zacks reports. The company had revenue of $3.84 billion for 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%. The firm's quarterly revenue was up 30.8% compared to the same quarter last year. During the same quarter last year, the firm earned $3.88 EPS.

LPL Financial Stock Up 1.1%

NASDAQ LPLA traded up $4.12 during trading on Wednesday, reaching $378.06. 304,065 shares of the company's stock traded hands, compared to its average volume of 821,571. The company has a debt-to-equity ratio of 1.82, a current ratio of 2.31 and a quick ratio of 2.31. The firm has a market cap of $30.24 billion, a price-to-earnings ratio of 25.84, a price-to-earnings-growth ratio of 0.89 and a beta of 0.66. The company's 50 day simple moving average is $378.40 and its two-hundred day simple moving average is $355.40. LPL Financial has a 12-month low of $193.22 and a 12-month high of $403.58.

LPL Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Friday, August 15th will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is 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 (DPR) is 8.21%.

Insider Buying and Selling

In other LPL Financial news, Director Greg Gates sold 1,500 shares of the firm's stock in a transaction dated Thursday, July 3rd. The shares were sold at an average price of $382.63, for a total transaction of $573,945.00. Following the transaction, the director owned 20,620 shares of the company's stock, valued at approximately $7,889,830.60. This trade represents a 6.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in LPLA. Acadian Asset Management LLC purchased a new position in LPL Financial during the 1st quarter valued at about $121,000. NewEdge Advisors LLC grew its position in shares of LPL Financial by 42.7% in the 1st quarter. NewEdge Advisors LLC now owns 3,525 shares of the financial services provider's stock worth $1,153,000 after buying an additional 1,055 shares during the last quarter. Focus Partners Wealth grew its position in shares of LPL Financial by 12.2% in the 1st 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 last quarter. Woodline Partners LP purchased a new position in shares of LPL Financial in the 1st quarter worth approximately $1,636,000. Finally, Goldman Sachs Group Inc. grew its position in shares of LPL Financial by 0.5% in the 1st 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. Hedge funds and other institutional investors own 95.66% of the company's stock.

Wall Street Analysts Forecast Growth

LPLA has been the subject of several research analyst reports. Wall Street Zen cut shares of LPL Financial from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. JMP Securities raised their target price on shares of LPL Financial from $420.00 to $440.00 and gave the stock a "market outperform" rating in a research report on Friday, May 9th. Wells Fargo & Company raised their target price on shares of LPL Financial from $402.00 to $420.00 and gave the stock an "overweight" rating in a research report on Friday, July 11th. Keefe, Bruyette & Woods raised their target price on shares of LPL Financial from $425.00 to $435.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, Redburn Atlantic raised shares of LPL Financial from a "neutral" rating to a "buy" rating and lifted their price target for the company from $420.00 to $460.00 in a research report on Monday, June 9th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and ten have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $383.58.

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.