LPL Financial (NASDAQ:LPLA) Cut to "Neutral" at Rothschild & Co Redburn

Key Points

• LPL Financial was downgraded from a "buy" to a "neutral" rating by Rothschild & Co Redburn, placing a price target of $390.00, indicating a potential upside of 20.65% from its current price.
• Additional analysts have mixed views on LPL Financial, with TD Cowen lowering its rating from "strong-buy" to "hold," while Morgan Stanley and Wells Fargo increased their price targets, indicating varied confidence among investors.
• Institutional investors like Vanguard Group Inc. and Dodge & Cox have significantly increased their stakes in LPL Financial, highlighting strong institutional interest in the stock.

Rothschild & Co Redburn lowered shares of LPL Financial (NASDAQ:LPLA - Free Report) from a buy rating to a neutral rating in a research report sent to investors on Friday morning, Marketbeat reports. The brokerage currently has $390.00 price objective on the financial services provider's stock.

Several other equities research analysts have also weighed in on the company. The Goldman Sachs Group started coverage on LPL Financial in a report on Friday, September 12th. They issued a "buy" rating and a $405.00 price objective for the company. Keefe, Bruyette & Woods upped their target price on LPL Financial from $425.00 to $435.00 and gave the company an "outperform" rating in a report on Monday, August 4th. Morgan Stanley reissued an "overweight" rating and issued a $490.00 target price (up from $450.00) on shares of LPL Financial in a research note on Tuesday, July 15th. Barclays decreased their price objective on LPL Financial from $463.00 to $460.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 2nd. Finally, Redburn Atlantic raised LPL Financial from a "neutral" rating to a "buy" rating and raised their price target for the stock from $420.00 to $460.00 in a research note on Monday, June 9th. Ten analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $391.54.

LPL Financial Stock Down 1.1%

Shares of LPLA traded down $3.62 during trading hours on Friday, reaching $335.75. The stock had a trading volume of 2,933,132 shares, compared to its average volume of 826,871. The company has a current ratio of 3.22, a quick ratio of 3.22 and a debt-to-equity ratio of 1.41. The firm has a 50-day simple moving average of $363.42 and a 200 day simple moving average of $353.36. LPL Financial has a 12 month low of $214.57 and a 12 month high of $403.58. The company has a market capitalization of $26.86 billion, a price-to-earnings ratio of 22.97, a P/E/G ratio of 0.78 and a beta of 0.66.

LPL Financial (NASDAQ:LPLA - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The financial services provider reported $4.51 earnings per share for the quarter, beating the consensus estimate of $4.21 by $0.30. LPL Financial had a return on equity of 39.80% and a net margin of 7.91%.The business had revenue of $3.84 billion for the quarter, compared to analysts' expectations of $3.77 billion. During the same period last year, the business earned $3.88 EPS. The business's revenue was up 30.8% on a year-over-year basis. Equities research analysts predict that LPL Financial will post 19.35 earnings per share for the current fiscal year.

LPL Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Friday, August 15th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 0.4%. The ex-dividend date was Friday, August 15th. LPL Financial's dividend payout ratio is currently 8.21%.

Insider Buying and Selling at LPL Financial

In related news, Director Aneri Jambusaria sold 80 shares of the firm's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $361.25, for a total value of $28,900.00. Following the completion of the transaction, the director 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Greg Gates sold 1,500 shares of LPL Financial stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $338.21, for a total transaction of $507,315.00. Following the completion of the sale, the director owned 17,620 shares of the company's stock, valued at $5,959,260.20. This trade represents a 7.85% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 4,580 shares of company stock worth $1,671,235. Company insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On LPL Financial

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. DAVENPORT & Co LLC increased its position in LPL Financial by 8.9% during the 1st quarter. DAVENPORT & Co LLC now owns 1,918 shares of the financial services provider's stock valued at $627,000 after purchasing an additional 156 shares during the period. Merit Financial Group LLC increased its stake 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 worth $1,093,000 after purchasing an additional 2,209 shares during the period. JPMorgan Chase & Co. increased its stake in shares of LPL Financial by 8.8% during the first quarter. JPMorgan Chase & Co. now owns 1,304,780 shares of the financial services provider's stock valued at $426,846,000 after buying an additional 105,665 shares during the period. Amalgamated Bank boosted its position in LPL Financial by 3.8% during the first quarter. Amalgamated Bank now owns 5,875 shares of the financial services provider's stock valued at $1,922,000 after purchasing an additional 213 shares in the last quarter. Finally, Blue Trust Inc. boosted its holdings in LPL Financial by 2,319.1% in the first quarter. Blue Trust Inc. now owns 1,137 shares of the financial services provider's stock worth $372,000 after acquiring an additional 1,090 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.