LPL Financial (NASDAQ:LPLA) Earns Buy Rating from Analysts at The Goldman Sachs Group

Key Points

• LPL Financial received a "buy" rating from The Goldman Sachs Group, with a target price of $405.00, indicating a potential upside of 16.48% from its current price.
• Other analysts' ratings vary widely, with Citigroup issuing a "sell" rating and a price objective of $80.00, while Redburn Atlantic upgraded their target to $460.00 from a "neutral" rating.
• LPL Financial reported $4.51 EPS for the last quarter, surpassing estimates and showing a 30.8% year-over-year revenue growth.

Equities researchers at The Goldman Sachs Group initiated coverage on shares of LPL Financial (NASDAQ:LPLA - Get Free Report) in a report issued on Friday, Marketbeat reports. The firm set a "buy" rating and a $405.00 price target on the financial services provider's stock. The Goldman Sachs Group's target price would indicate a potential upside of 16.48% from the stock's previous close.

Several other research analysts have also recently issued reports on LPLA. TD Cowen cut LPL Financial from a "strong-buy" rating to a "hold" rating and dropped their target price for the stock from $406.00 to $403.00 in a research report on Wednesday, July 9th. Morgan Stanley reissued an "overweight" rating and issued a $490.00 price objective (up previously from $450.00) on shares of LPL Financial in a report on Tuesday, July 15th. Wall Street Zen downgraded shares of LPL Financial from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. 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 report on Friday, July 11th. Finally, Citigroup lowered LPL Financial from a "neutral" rating to a "sell" rating and set a $80.00 price objective for the company. in a research note on Wednesday, July 9th. 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 MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $391.67.

LPL Financial Trading Up 1.7%

NASDAQ:LPLA opened at $347.71 on Friday. The company has a market cap of $27.82 billion, a PE ratio of 23.78, a price-to-earnings-growth ratio of 0.80 and a beta of 0.66. 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 company has a 50 day simple moving average of $368.35 and a two-hundred day simple moving average of $354.09. LPL Financial has a 12 month low of $205.50 and a 12 month high of $403.58.

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

Insider Activity at LPL Financial

In other news, Director Aneri Jambusaria sold 80 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $361.25, for a total transaction of $28,900.00. Following the completion of the transaction, the director owned 5,582 shares in the company, valued at $2,016,497.50. This trade represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Greg Gates sold 1,500 shares of the business's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $338.21, for a total value of $507,315.00. Following the sale, the director directly owned 17,620 shares in the company, valued at $5,959,260.20. The trade was a 7.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 4,580 shares of company stock worth $1,671,235. Company insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On LPL Financial

A number of large investors have recently added to or reduced their stakes in LPLA. Cullen Frost Bankers Inc. grew its position in shares of LPL Financial by 9.9% in the 2nd quarter. Cullen Frost Bankers Inc. now owns 301 shares of the financial services provider's stock worth $113,000 after buying an additional 27 shares during the last quarter. Compass Financial Services Inc grew its stake in LPL Financial by 14.5% during the 1st quarter. Compass Financial Services Inc now owns 229 shares of the financial services provider's stock valued at $75,000 after purchasing an additional 29 shares during the last quarter. Camden National Bank raised its stake in shares of LPL Financial by 3.1% in the second quarter. Camden National Bank now owns 967 shares of the financial services provider's stock worth $363,000 after purchasing an additional 29 shares during the last quarter. Perennial Investment Advisors LLC lifted its holdings in shares of LPL Financial by 4.0% during the second quarter. Perennial Investment Advisors LLC now owns 804 shares of the financial services provider's stock worth $302,000 after purchasing an additional 31 shares during the period. Finally, Magnolia Private Wealth LLC grew its holdings in LPL Financial by 2.0% during the second quarter. Magnolia Private Wealth LLC now owns 1,662 shares of the financial services provider's stock worth $623,000 after acquiring an additional 33 shares during the period. 95.66% of the stock is currently owned by institutional investors.

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.