LPL Financial (NASDAQ:LPLA) Hits New 12-Month Low - Time to Sell?

Key Points

• LPL Financial shares hit a new 52-week low during intraday trading, falling to as low as $274.06 and extending weakness well below its 50-day and 200-day moving averages.
• Despite the stock’s decline, analysts remain broadly positive: the consensus rating is Moderate Buy with an average price target of $398.86, and several firms recently reiterated or raised their targets.
• The company reported better-than-expected quarterly EPS of $5.60, while also announcing a $0.30 quarterly dividend; however, revenue came in slightly below estimates.

LPL Financial Holdings Inc. (NASDAQ:LPLA - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $274.06 and last traded at $272.32, with a volume of 31968 shares changing hands. The stock had previously closed at $282.42.

Analysts Set New Price Targets

A number of analysts have recently commented on LPLA shares. Citizens Jmp reissued a "market outperform" rating and issued a $500.00 price objective on shares of LPL Financial in a research note on Monday, April 6th. Keefe, Bruyette & Woods began coverage on LPL Financial in a research note on Wednesday, April 8th. They set an "outperform" rating and a $350.00 target price for the company. JPMorgan Chase & Co. lowered their target price on LPL Financial from $396.00 to $390.00 and set an "overweight" rating on the stock in a report on Friday, May 1st. Morgan Stanley dropped their price target on shares of LPL Financial from $447.00 to $374.00 and set an "overweight" rating on the stock in a research report on Friday, April 10th. Finally, Barclays upped their price target on shares of LPL Financial from $369.00 to $412.00 and gave the company an "overweight" rating in a report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $398.86.

LPL Financial Price Performance

The company has a market cap of $21.25 billion, a price-to-earnings ratio of 23.72, a P/E/G ratio of 0.59 and a beta of 0.57. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 1.26. The business has a 50-day moving average price of $305.28 and a 200 day moving average price of $337.09.

LPL Financial (NASDAQ:LPLA - Get Free Report) last issued its earnings results on Thursday, April 30th. The financial services provider reported $5.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.49 by $0.11. LPL Financial had a return on equity of 31.26% and a net margin of 4.93%.The business had revenue of $4.94 billion for the quarter, compared to analysts' expectations of $4.98 billion. During the same period in the previous year, the firm posted $5.15 EPS. The company's quarterly revenue was up 34.6% on a year-over-year basis. As a group, research analysts expect that LPL Financial Holdings Inc. will post 22.98 earnings per share for the current fiscal year.

LPL Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 0.5%. The ex-dividend date is Thursday, May 21st. LPL Financial's payout ratio is presently 10.71%.

Insider Buying and Selling at LPL Financial

In other LPL Financial news, Director Marc Eliot Cohen sold 1,088 shares of the company's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $309.72, for a total transaction of $336,975.36. Following the completion of the sale, the director directly owned 4,400 shares of the company's stock, valued at approximately $1,362,768. This represents a 19.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Matthew J. Audette sold 1,110 shares of the firm's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $330.01, for a total transaction of $366,311.10. Following the completion of the transaction, the chief financial officer owned 19,803 shares of the company's stock, valued at approximately $6,535,188.03. The trade was a 5.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 8,569 shares of company stock valued at $2,720,733. 0.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On LPL Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Osterweis Capital Management Inc. purchased a new stake in shares of LPL Financial in the second quarter valued at $26,000. Clearstead Advisors LLC grew its holdings in shares of LPL Financial by 3,650.0% during the fourth quarter. Clearstead Advisors LLC now owns 75 shares of the financial services provider's stock valued at $27,000 after buying an additional 73 shares in the last quarter. Steigerwald Gordon & Koch Inc. raised its position in LPL Financial by 550.0% during the fourth quarter. Steigerwald Gordon & Koch Inc. now owns 78 shares of the financial services provider's stock valued at $28,000 after buying an additional 66 shares during the period. Chung Wu Investment Group LLC purchased a new stake in LPL Financial in the 3rd quarter worth about $27,000. Finally, Westside Investment Management Inc. purchased a new stake in LPL Financial in the 3rd quarter worth about $34,000. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

LPL Financial Company Profile

LPL Financial NASDAQ: LPLA is a U.S.-focused financial services firm that provides brokerage, custodial and advisory platforms to independent financial advisors, registered investment advisers and institutions. Operating primarily as an independent broker-dealer and custodian, the company supports a network of advisors with the operational, compliance and clearing infrastructure needed to manage client accounts and deliver investment advice outside of traditional wirehouse models.

The firm's product and service offerings include trade execution and clearing, custody services, retirement plan services, model portfolio and advisory platforms, wealth management technology, investment research and product access across equities, fixed income, mutual funds, exchange-traded funds and insurance and annuity solutions.

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