LPL Financial (NASDAQ:LPLA) Shares Down 5.1% - Here's Why

Key Points

• LPL Financial's shares experienced a decline of 5.1%, with trading hitting a low of $354.20, significantly below its previous close of $373.41.
• Analysts have mixed ratings on the stock, with Citigroup downgrading it from "neutral" to "sell," while others maintain a more positive outlook, giving it an average rating of "Moderate Buy" and a target price of $383.58.
• The company reported better-than-expected earnings of $4.51 per share for the last quarter, exceeding estimates and reflecting a year-over-year revenue increase of 30.8%.

LPL Financial Holdings Inc. (NASDAQ:LPLA - Get Free Report) traded down 5.1% during mid-day trading on Wednesday . The stock traded as low as $354.28 and last traded at $354.20. 269,410 shares traded hands during mid-day trading, a decline of 67% from the average session volume of 811,622 shares. The stock had previously closed at $373.41.

Analyst Upgrades and Downgrades

A number of brokerages have commented on LPLA. Citigroup downgraded shares of LPL Financial from a "neutral" rating to a "sell" rating and set a $80.00 target price on the stock. in a research note on Wednesday, July 9th. Wall Street Zen downgraded shares of LPL Financial from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. Keefe, Bruyette & Woods lifted their price objective 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 raised shares of LPL Financial from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $420.00 to $460.00 in a report on Monday, June 9th. Finally, Morgan Stanley reissued an "overweight" rating and set a $490.00 target price (up previously from $450.00) on shares of LPL Financial in a research note on Tuesday, July 15th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and ten have given a buy rating to the stock. Based on data from MarketBeat, LPL Financial currently has an average rating of "Moderate Buy" and a consensus target price of $383.58.

LPL Financial Stock Performance

The company has a debt-to-equity ratio of 1.41, a quick ratio of 3.22 and a current ratio of 3.22. The company's 50 day simple moving average is $377.18 and its 200 day simple moving average is $356.00. The stock has a market cap of $28.10 billion, a price-to-earnings ratio of 24.01, a PEG ratio of 0.87 and a beta of 0.66.

LPL Financial (NASDAQ:LPLA - Get Free Report) last released its earnings results on Thursday, July 31st. The financial services provider reported $4.51 earnings per share for the quarter, topping 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 business 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 firm posted $3.88 earnings per share. The firm's quarterly revenue was up 30.8% compared to the same quarter last year. On average, equities research analysts anticipate that LPL Financial Holdings Inc. will post 19.35 earnings per share for the current year.

LPL Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend is Friday, August 15th. LPL Financial's dividend payout ratio is currently 8.21%.

Insider Activity

In other LPL Financial news, Director Greg Gates sold 1,500 shares of the stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $374.05, for a total value of $561,075.00. Following the completion of the sale, the director directly owned 19,120 shares of the company's stock, valued at $7,151,836. This represents a 7.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.70% of the company's stock.

Institutional Investors Weigh In On LPL Financial

A number of hedge funds have recently made changes to their positions in the company. Cullen Frost Bankers Inc. grew its position in 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 purchasing an additional 27 shares during the period. Anchor Investment Management LLC grew its position in shares of LPL Financial by 0.3% during the 4th quarter. Anchor Investment Management LLC now owns 9,697 shares of the financial services provider's stock valued at $3,166,000 after acquiring an additional 28 shares during the period. Colonial Trust Co SC lifted its stake in shares of LPL Financial by 6.1% during the 4th quarter. Colonial Trust Co SC now owns 505 shares of the financial services provider's stock valued at $165,000 after buying an additional 29 shares in the last quarter. Compass Financial Services Inc grew its holdings 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 buying an additional 29 shares in the last quarter. Finally, Camden National Bank boosted its holdings in shares of LPL Financial by 3.1% during the 2nd quarter. Camden National Bank now owns 967 shares of the financial services provider's stock valued at $363,000 after purchasing an additional 29 shares during the last quarter. Institutional investors and hedge funds own 95.66% of the company's stock.

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.

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