LPL Financial (NASDAQ:LPLA) Reaches New 52-Week Low - Here's What Happened

Key Points

• LPL Financial hit a new 52-week low, trading as low as $280.40 after closing previously at $283.83, highlighting recent weakness in the shares.
• Despite the drop, analysts remain broadly positive: the stock carries a Moderate Buy rating with an average target price of $398.86, though several firms have recently lowered their price targets.
• The company reported better-than-expected EPS of $5.60 in its latest quarter, announced a $0.30 quarterly dividend, and continues to see heavy institutional ownership at 95.66%.

LPL Financial Holdings Inc. (NASDAQ:LPLA - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The stock traded as low as $280.40 and last traded at $280.8050, with a volume of 96175 shares. The stock had previously closed at $283.83.

Analysts Set New Price Targets

Several research firms have issued reports on LPLA. Barclays increased their price objective on LPL Financial from $369.00 to $412.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. Citizens Jmp reissued a "market outperform" rating and issued a $500.00 target price on shares of LPL Financial in a report on Monday, April 6th. Morgan Stanley lowered their target price on LPL Financial from $447.00 to $374.00 and set an "overweight" rating on the stock in a report on Friday, April 10th. Citigroup reissued a "market outperform" rating on shares of LPL Financial in a report on Tuesday, February 3rd. Finally, Jefferies Financial Group lowered their target price on LPL Financial from $464.00 to $383.00 and set a "buy" rating on the stock in a report on Monday, April 6th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, LPL Financial has an average rating of "Moderate Buy" and an average target price of $398.86.

LPL Financial Stock Up 0.2%

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 stock has a 50-day simple moving average of $306.24 and a 200-day simple moving average of $339.65. The company has a market cap of $22.74 billion, a price-to-earnings ratio of 25.35, a price-to-earnings-growth ratio of 0.59 and a beta of 0.57.

LPL Financial (NASDAQ:LPLA - Get Free Report) last announced its quarterly 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 company had revenue of $4.94 billion during the quarter, compared to analyst estimates of $4.98 billion. During the same quarter in the previous year, the firm posted $5.15 EPS. The firm's quarterly revenue was up 34.6% on a year-over-year basis. As a group, analysts predict that LPL Financial Holdings Inc. will post 22.98 EPS for the current year.

LPL Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Thursday, May 21st will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.4%. LPL Financial's payout ratio is 10.71%.

Insider Transactions at LPL Financial

In related news, Director Marc Eliot Cohen sold 1,088 shares of the company's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $309.72, for a total transaction of $336,975.36. Following the transaction, the director directly owned 4,400 shares of the company's stock, valued at approximately $1,362,768. The trade was a 19.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Matthew Enyedi sold 2,109 shares of the company's stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $320.15, for a total value of $675,196.35. Following the transaction, the director directly owned 14,121 shares in the company, valued at $4,520,838.15. The trade was a 12.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,569 shares of company stock valued at $2,720,733 over the last three months. Company insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Osterweis Capital Management Inc. acquired a new position in LPL Financial in the 2nd quarter worth about $26,000. Chung Wu Investment Group LLC bought a new stake in LPL Financial during the 3rd quarter valued at approximately $27,000. Clearstead Advisors LLC boosted its stake in LPL Financial by 3,650.0% during the 4th quarter. Clearstead Advisors LLC now owns 75 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 73 shares during the period. Steigerwald Gordon & Koch Inc. raised its holdings in LPL Financial by 550.0% in the 4th quarter. Steigerwald Gordon & Koch Inc. now owns 78 shares of the financial services provider's stock valued at $28,000 after acquiring an additional 66 shares in the last quarter. Finally, Westside Investment Management Inc. acquired a new position in LPL Financial in the 3rd quarter valued at approximately $34,000. 95.66% of the stock is owned by institutional investors and hedge funds.

About LPL Financial

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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