Zacks Research Predicts Weaker Earnings for LPL Financial

LPL Financial Holdings Inc. (NASDAQ:LPLA - Free Report) - Analysts at Zacks Research dropped their Q2 2025 earnings per share estimates for LPL Financial in a report issued on Monday, July 21st. Zacks Research analyst R. Department now forecasts that the financial services provider will post earnings of $4.17 per share for the quarter, down from their previous estimate of $4.21. The consensus estimate for LPL Financial's current full-year earnings is $19.35 per share. Zacks Research also issued estimates for LPL Financial's Q1 2026 earnings at $5.14 EPS, Q3 2026 earnings at $5.50 EPS, Q4 2026 earnings at $5.64 EPS, FY2026 earnings at $21.74 EPS, Q1 2027 earnings at $6.65 EPS, Q2 2027 earnings at $7.04 EPS and FY2027 earnings at $29.69 EPS.

LPL Financial (NASDAQ:LPLA - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The financial services provider reported $5.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.54 by $0.61. The firm had revenue of $3.67 billion during the quarter, compared to analysts' expectations of $3.63 billion. LPL Financial had a return on equity of 46.34% and a net margin of 8.23%. LPL Financial's revenue was up 4.5% on a year-over-year basis. During the same period in the previous year, the firm posted $3.83 earnings per share.

Several other equities analysts have also recently issued reports on LPLA. Morgan Stanley reaffirmed an "overweight" rating and set a $490.00 price objective (up from $450.00) on shares of LPL Financial in a report on Tuesday, July 15th. JMP Securities raised their price target 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. Wells Fargo & Company raised their price target on LPL Financial from $402.00 to $420.00 and gave the stock an "overweight" rating in a research report on Friday, July 11th. TD Cowen downgraded LPL Financial from a "strong-buy" rating to a "hold" rating and dropped their price target for the stock from $406.00 to $403.00 in a research report on Wednesday, July 9th. Finally, Wall Street Zen downgraded LPL Financial from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and eleven have given a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $372.15.

LPL Financial Price Performance

LPLA stock traded up $3.25 during midday trading on Wednesday, hitting $380.04. 548,164 shares of the stock were exchanged, compared to its average volume of 749,455. The stock's 50-day moving average price is $377.67 and its 200-day moving average price is $352.98. The stock has a market cap of $30.40 billion, a price-to-earnings ratio of 26.30, a PEG ratio of 0.92 and a beta of 0.64. LPL Financial has a fifty-two week low of $187.19 and a fifty-two week high of $396.25. The company has a debt-to-equity ratio of 1.82, a quick ratio of 2.31 and a current ratio of 2.31.

LPL Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 12th. Stockholders of record on Friday, May 30th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.32%. The ex-dividend date of this dividend was Friday, May 30th. LPL Financial's dividend payout ratio is currently 8.30%.

Insider Activity at LPL Financial

In other news, Director Greg Gates sold 1,500 shares of LPL Financial stock in a transaction 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 completion of the sale, the director owned 20,620 shares of the company's stock, 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 document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On LPL Financial

A number of institutional investors have recently added to or reduced their stakes in LPLA. Dodge & Cox grew its position in LPL Financial by 224.1% during the first quarter. Dodge & Cox now owns 1,523,460 shares of the financial services provider's stock valued at $498,385,000 after acquiring an additional 1,053,351 shares during the period. Principal Financial Group Inc. grew its position in LPL Financial by 1,453.3% during the first quarter. Principal Financial Group Inc. now owns 1,038,683 shares of the financial services provider's stock valued at $339,795,000 after acquiring an additional 971,814 shares during the period. Norges Bank purchased a new stake in LPL Financial during the fourth quarter valued at about $305,747,000. Jennison Associates LLC lifted its stake in shares of LPL Financial by 786.2% during the first quarter. Jennison Associates LLC now owns 959,371 shares of the financial services provider's stock worth $313,849,000 after purchasing an additional 851,115 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its stake in shares of LPL Financial by 550.5% during the first quarter. Alliancebernstein L.P. now owns 759,206 shares of the financial services provider's stock worth $248,367,000 after purchasing an additional 642,503 shares in the last quarter. Hedge funds and other institutional investors own 95.66% of the company's stock.

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.