LPL Financial (NASDAQ:LPLA) Hits New 12-Month High - Time to Buy?

Key Points

• LPL Financial's stock reached a new 52-week high of $396.49 during trading, closing at $396.04 with a volume of 88,995 shares traded.
• Analyst ratings on LPL Financial are mixed, with 11 buy ratings, 2 hold ratings, and 1 sell rating, while price targets vary widely from $80.00 to $490.00.
• The company reported earnings of $5.15 per share for the last quarter, exceeding the expected $4.54, with quarterly revenue up 4.5% year-over-year.

Shares of LPL Financial Holdings Inc. (NASDAQ:LPLA - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $396.49 and last traded at $396.04, with a volume of 88995 shares changing hands. The stock had previously closed at $390.67.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. 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. TD Cowen lowered LPL Financial from a "strong-buy" rating to a "hold" rating and cut their price objective for the stock from $406.00 to $403.00 in a report on Wednesday, July 9th. Redburn Atlantic upgraded LPL Financial from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $420.00 to $460.00 in a report on Monday, June 9th. Barclays raised their target price on LPL Financial from $460.00 to $463.00 and gave the company an "overweight" rating in a report on Friday. Finally, JMP Securities raised their target price on LPL Financial from $420.00 to $440.00 and gave the company a "market outperform" rating in a report on Friday, May 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's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $381.08.

LPL Financial Stock Down 7.5%

The company has a quick ratio of 2.31, a current ratio of 2.31 and a debt-to-equity ratio of 1.82. The business has a fifty day simple moving average of $378.58 and a two-hundred day simple moving average of $354.67. The company has a market capitalization of $29.29 billion, a price-to-earnings ratio of 25.32, a P/E/G ratio of 0.98 and a beta of 0.64.

LPL Financial (NASDAQ:LPLA - Get Free Report) last announced its earnings results on Thursday, July 31st. The financial services provider reported $4.51 EPS for the quarter, topping the consensus estimate of $4.21 by $0.30. The business had revenue of $3.84 billion for the quarter, compared to the consensus estimate of $3.77 billion. LPL Financial had a return on equity of 46.34% and a net margin of 8.23%. LPL Financial's revenue was up 30.8% compared to the same quarter last year. During the same period in the previous year, the business earned $3.88 EPS. Equities analysts expect that LPL Financial Holdings Inc. will post 19.35 EPS for the current year.

LPL Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 0.3%. LPL Financial's payout ratio is currently 8.30%.

Insider Activity at LPL Financial

In other news, Director Greg Gates sold 1,500 shares of the business's stock in a transaction that occurred on 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 directly owned 20,620 shares of the company's stock, valued at $7,889,830.60. The trade was a 6.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Summit Securities Group LLC acquired a new position in LPL Financial during the 1st quarter worth $26,000. Millstone Evans Group LLC lifted its holdings in LPL Financial by 123.1% during the 1st quarter. Millstone Evans Group LLC now owns 87 shares of the financial services provider's stock worth $28,000 after buying an additional 48 shares in the last quarter. Private Trust Co. NA lifted its holdings in LPL Financial by 234.5% during the 1st quarter. Private Trust Co. NA now owns 97 shares of the financial services provider's stock worth $32,000 after buying an additional 68 shares in the last quarter. MassMutual Private Wealth & Trust FSB lifted its holdings in LPL Financial by 63.9% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 100 shares of the financial services provider's stock worth $33,000 after buying an additional 39 shares in the last quarter. Finally, City Holding Co. acquired a new position in LPL Financial during the 1st quarter worth $34,000. 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.