LPL Financial (NASDAQ:LPLA) Trading Down 8.4% - Should You 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%.

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

Analyst Upgrades and Downgrades

A number of research firms have issued reports on LPLA. Barclays increased their price target on LPL Financial from $460.00 to $463.00 and gave the company an "overweight" rating in a research report on Friday. TD Cowen lowered LPL Financial from a "strong-buy" rating to a "hold" rating and cut their target price for the stock from $406.00 to $403.00 in a research report on Wednesday, July 9th. JMP Securities raised their target price on LPL Financial from $420.00 to $440.00 and gave the stock a "market outperform" rating in a research report on Friday, May 9th. Citigroup lowered LPL Financial from a "neutral" rating to a "sell" rating and set a $80.00 target price on the stock. in a research report on Wednesday, July 9th. Finally, Wall Street Zen lowered 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 issued a hold rating and ten have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $381.08.

LPL Financial Stock Down 7.8%

The business has a 50 day moving average of $378.58 and a 200-day moving average of $354.67. The stock has a market cap of $29.18 billion, a PE ratio of 25.25, a P/E/G ratio of 0.98 and a beta of 0.64. The company has a current ratio of 2.31, a quick ratio of 2.31 and a debt-to-equity ratio of 1.82.

LPL Financial (NASDAQ:LPLA - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The financial services provider reported $4.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.21 by $0.30. The firm 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%. The firm's quarterly revenue was up 30.8% compared to the same quarter last year. During the same quarter last year, the business posted $3.88 EPS. Equities research analysts predict that LPL Financial Holdings Inc. will post 19.35 EPS for the current fiscal year.

LPL Financial Announces Dividend

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

Insider Buying and Selling at LPL Financial

In other LPL Financial news, Director Greg Gates sold 1,500 shares of LPL Financial 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 in the company, valued at approximately $7,889,830.60. This trade represents a 6.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of LPLA. Summit Securities Group LLC purchased a new position in shares of LPL Financial in the 1st quarter valued at approximately $26,000. Millstone Evans Group LLC grew its stake in shares of LPL Financial by 123.1% in the 1st quarter. Millstone Evans Group LLC now owns 87 shares of the financial services provider's stock valued at $28,000 after purchasing an additional 48 shares during the last quarter. Private Trust Co. NA grew its stake in shares of LPL Financial by 234.5% in the 1st quarter. Private Trust Co. NA now owns 97 shares of the financial services provider's stock valued at $32,000 after purchasing an additional 68 shares during the last quarter. MassMutual Private Wealth & Trust FSB boosted its stake in shares of LPL Financial by 63.9% in 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 in the last quarter. Finally, City Holding Co. purchased a new stake in shares of LPL Financial in the first quarter valued at approximately $34,000. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

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.

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