LPL Financial (NASDAQ:LPLA) Hits New 1-Year High – Here’s Why

LPL Financial Holdings Inc. (NASDAQ:LPLA)’s share price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $354.13 and last traded at $350.40, with a volume of 599305 shares traded. The stock had previously closed at $348.93.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on LPLA shares. TD Cowen raised shares of LPL Financial from a “hold” rating to a “buy” rating and lifted their price target for the company from $277.00 to $413.00 in a report on Thursday, December 19th. Jefferies Financial Group reduced their target price on LPL Financial from $309.00 to $282.00 and set a “buy” rating on the stock in a report on Friday, October 4th. JPMorgan Chase & Co. raised LPL Financial from a “neutral” rating to an “overweight” rating and raised their price target for the company from $288.00 to $397.00 in a report on Tuesday, January 7th. Keefe, Bruyette & Woods boosted their price objective on LPL Financial from $325.00 to $390.00 and gave the stock an “outperform” rating in a research note on Friday, December 20th. Finally, The Goldman Sachs Group raised their target price on LPL Financial from $271.00 to $305.00 and gave the company a “buy” rating in a research note on Friday, November 1st. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and twelve have given a buy rating to the stock. According to MarketBeat.com, LPL Financial presently has a consensus rating of “Moderate Buy” and an average target price of $351.50.

LPL Financial Stock Performance

The company has a debt-to-equity ratio of 1.60, a quick ratio of 2.16 and a current ratio of 2.16. The company has a market cap of $26.24 billion, a price-to-earnings ratio of 26.35, a PEG ratio of 1.07 and a beta of 0.87. The firm’s 50-day moving average price is $328.90 and its 200 day moving average price is $268.76.

LPL Financial (NASDAQ:LPLA) last issued its earnings results on Wednesday, October 30th. The financial services provider reported $4.16 EPS for the quarter, beating the consensus estimate of $3.69 by $0.47. LPL Financial had a net margin of 8.73% and a return on equity of 49.47%. The company had revenue of $3.11 billion during the quarter, compared to analysts’ expectations of $3.04 billion. During the same quarter in the previous year, the company posted $3.74 EPS. The business’s revenue for the quarter was up 6.0% compared to the same quarter last year. On average, sell-side analysts anticipate that LPL Financial Holdings Inc. will post 16.12 EPS for the current year.

LPL Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, December 2nd. Shareholders of record on Thursday, November 14th were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 0.34%. The ex-dividend date was Thursday, November 14th. LPL Financial’s dividend payout ratio (DPR) is currently 9.02%.

Insider Transactions at LPL Financial

In other news, Director Aneri Jambusaria sold 305 shares of LPL Financial stock in a transaction on Thursday, December 5th. The shares were sold at an average price of $331.94, for a total transaction of $101,241.70. Following the transaction, the director now directly owns 3,920 shares of the company’s stock, valued at $1,301,204.80. This trade represents a 7.22 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 1.00% of the company’s stock.

Institutional Trading of LPL Financial

Hedge funds have recently added to or reduced their stakes in the business. Ashton Thomas Securities LLC acquired a new position in LPL Financial in the third quarter valued at about $31,000. Paladin Wealth LLC acquired a new position in shares of LPL Financial in the 3rd quarter valued at approximately $34,000. Brooklyn Investment Group bought a new stake in LPL Financial during the 3rd quarter worth approximately $43,000. First Horizon Advisors Inc. raised its holdings in LPL Financial by 32.3% during the 3rd quarter. First Horizon Advisors Inc. now owns 385 shares of the financial services provider’s stock worth $90,000 after buying an additional 94 shares during the period. Finally, Quarry LP lifted its stake in LPL Financial by 45.3% in the second quarter. Quarry LP now owns 327 shares of the financial services provider’s stock valued at $91,000 after buying an additional 102 shares in the last quarter. Institutional investors and hedge funds 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.