LPL Financial (NASDAQ:LPLA) Stock Price Down 8.4% - Time to Sell?

Key Points

• LPL Financial's shares dropped by 8.4% during mid-day trading, with the stock hitting a low of $355.06 before closing at $362.33.
• Analyst ratings are mixed, with some firms upgrading their price targets while others, like Citigroup, downgraded LPL Financial to a "sell" rating with a target price of $80.00.
• The company recently announced a quarterly dividend of $0.30, indicating a dividend yield of 0.3% and maintaining a low payout ratio of 8.30%.

LPL Financial Holdings Inc. (NASDAQ:LPLA - Get Free Report) shares traded down 8.4% on Friday . The stock traded as low as $355.06 and last traded at $362.33. 1,003,819 shares changed hands during trading, an increase of 24% from the average session volume of 807,973 shares. The stock had previously closed at $395.73.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Barclays increased their price target on shares of LPL Financial from $460.00 to $463.00 and gave the company an "overweight" rating in a research report on Friday. Morgan Stanley reaffirmed an "overweight" rating and issued a $490.00 target price (up from $450.00) on shares of LPL Financial in a research report on Tuesday, July 15th. Citigroup cut shares of LPL Financial from a "neutral" rating to a "sell" rating and set a $80.00 target price for the company. in a research report on Wednesday, July 9th. TD Cowen cut shares of LPL Financial from a "strong-buy" rating to a "hold" rating and dropped their target price for the stock from $406.00 to $403.00 in a research report on Wednesday, July 9th. Finally, Wall Street Zen cut shares of LPL Financial from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and ten have assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $383.58.

LPL Financial Stock Performance

The firm has a market capitalization of $29.91 billion, a P/E ratio of 25.57, a price-to-earnings-growth ratio of 0.90 and a beta of 0.66. The company has a current ratio of 2.31, a quick ratio of 2.31 and a debt-to-equity ratio of 1.82. The business's 50 day simple moving average is $378.57 and its two-hundred day simple moving average is $355.27.

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 for the quarter, beating analysts' consensus estimates of $4.21 by $0.30. The business had revenue of $3.84 billion during the quarter, compared to analyst estimates of $3.77 billion. LPL Financial had a net margin of 7.91% and a return on equity of 47.01%. LPL Financial's revenue was up 30.8% compared to the same quarter last year. During the same period last year, the business earned $3.88 EPS. Sell-side analysts anticipate that LPL Financial Holdings Inc. will post 19.35 EPS for the current fiscal year.

LPL Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be paid a $0.30 dividend. The ex-dividend date is Friday, August 15th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.3%. LPL Financial's payout ratio is currently 8.21%.

Insider Activity at LPL Financial

In other news, Director Greg Gates sold 1,500 shares of LPL Financial stock in a transaction that occurred on Thursday, July 3rd. The shares were sold at an average price of $382.63, for a total value of $573,945.00. Following the completion of the sale, the director directly owned 20,620 shares in the company, valued at $7,889,830.60. The trade was a 6.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 1.30% of the stock is owned by corporate insiders.

Institutional Trading of LPL Financial

A number of large investors have recently made changes to their positions in LPLA. Summit Securities Group LLC bought a new stake in shares of LPL Financial in the first quarter worth approximately $26,000. Millstone Evans Group LLC grew its position in LPL Financial by 123.1% during the first quarter. Millstone Evans Group LLC now owns 87 shares of the financial services provider's stock valued at $28,000 after buying an additional 48 shares during the period. Private Trust Co. NA grew its position in LPL Financial by 234.5% during the first quarter. Private Trust Co. NA now owns 97 shares of the financial services provider's stock valued at $32,000 after buying an additional 68 shares during the period. MassMutual Private Wealth & Trust FSB grew its position in LPL Financial by 63.9% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 100 shares of the financial services provider's stock valued at $33,000 after buying an additional 39 shares during the period. Finally, City Holding Co. bought a new stake in LPL Financial during the first quarter valued at approximately $34,000. 95.66% of the stock is currently owned by 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.