LPL Financial (NASDAQ:LPLA) Rating Increased to Strong-Buy at BMO Capital Markets

Key Points

• LPL Financial has been upgraded to a "strong-buy" rating by BMO Capital Markets, reflecting increased analyst confidence in the company's stock.
• The company reported better-than-expected quarterly earnings, with earnings per share of $4.51, surpassing estimates by $0.30, and revenue growth of 30.8% year-over-year.
• Insider trades have occurred recently, including significant stock sales by directors, although institutional investors continue to have a strong presence with 95.66% of shares owned by hedge funds and other institutional investors.

LPL Financial (NASDAQ:LPLA - Get Free Report) was upgraded by analysts at BMO Capital Markets to a "strong-buy" rating in a note issued to investors on Thursday,Zacks.com reports.

Several other equities research analysts also recently weighed in on the stock. Barclays decreased their target price on shares of LPL Financial from $463.00 to $460.00 and set an "overweight" rating for the company in a research note on Tuesday, September 2nd. Keefe, Bruyette & Woods increased their target price on shares of LPL Financial from $425.00 to $435.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Redburn Atlantic upgraded shares of LPL Financial from a "neutral" rating to a "buy" rating and increased their target price for the stock from $420.00 to $460.00 in a research note on Monday, June 9th. Rothschild Redb downgraded shares of LPL Financial from a "strong-buy" rating to a "hold" rating in a research note on Friday, September 19th. Finally, The Goldman Sachs Group initiated coverage on shares of LPL Financial in a research note on Friday, September 12th. They set a "buy" rating and a $405.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $395.77.

LPL Financial Stock Performance

NASDAQ LPLA opened at $314.73 on Thursday. The company has a debt-to-equity ratio of 1.41, a current ratio of 3.22 and a quick ratio of 3.22. LPL Financial has a 1 year low of $236.59 and a 1 year high of $403.58. The company has a market capitalization of $25.18 billion, a PE ratio of 21.53, a P/E/G ratio of 0.73 and a beta of 0.61. The company has a fifty day moving average of $354.17 and a two-hundred day moving average of $353.72.

LPL Financial (NASDAQ:LPLA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The financial services provider reported $4.51 earnings per share (EPS) for the quarter, beating the consensus estimate 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 quarter in the prior year, the firm posted $3.88 earnings per share. LPL Financial's revenue for the quarter was up 30.8% on a year-over-year basis. As a group, analysts expect that LPL Financial will post 19.35 earnings per share for the current year.

Insider Transactions at LPL Financial

In other LPL Financial news, Director Greg Gates sold 1,500 shares of the stock in a transaction dated 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 transaction, the director directly owned 17,620 shares of the company's stock, valued at approximately $5,959,260.20. This trade represents a 7.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Aneri Jambusaria sold 80 shares of the stock in a transaction dated 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 transaction, the director directly owned 5,582 shares of the company's stock, valued at approximately $2,016,497.50. This trade represents a 1.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 3,080 shares of company stock valued at $1,097,290. 1.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in LPLA. Merit Financial Group LLC increased its holdings in LPL Financial by 195.1% in the first quarter. Merit Financial Group LLC now owns 3,341 shares of the financial services provider's stock valued at $1,093,000 after buying an additional 2,209 shares in the last quarter. Procyon Advisors LLC purchased a new position in LPL Financial in the first quarter valued at about $625,000. Horizon Wealth Management LLC increased its holdings in LPL Financial by 8.7% in the first quarter. Horizon Wealth Management LLC now owns 675 shares of the financial services provider's stock valued at $221,000 after buying an additional 54 shares in the last quarter. Impact Capital Partners LLC increased its holdings in LPL Financial by 2.0% in the first quarter. Impact Capital Partners LLC now owns 2,942 shares of the financial services provider's stock valued at $962,000 after buying an additional 59 shares in the last quarter. Finally, Gateway Investment Advisers LLC increased its holdings in LPL Financial by 10.7% in the first quarter. Gateway Investment Advisers LLC now owns 3,178 shares of the financial services provider's stock valued at $1,040,000 after buying an additional 307 shares in the last quarter. 95.66% of the stock is owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.