LPL Financial (NASDAQ:LPLA) Stock Price Up 1% – Should You Buy?

Shares of LPL Financial Holdings Inc. (NASDAQ:LPLA) rose 1% during mid-day trading on Tuesday . The stock traded as high as $379.59 and last traded at $377.70. Approximately 128,223 shares were traded during trading, a decline of 79% from the average daily volume of 604,899 shares. The stock had previously closed at $373.98.

Analyst Upgrades and Downgrades

LPLA has been the topic of several recent analyst reports. StockNews.com raised shares of LPL Financial from a “sell” rating to a “hold” rating in a research note on Saturday, November 9th. Morgan Stanley increased their target price on shares of LPL Financial from $379.00 to $413.00 and gave the stock an “overweight” rating in a research note on Thursday, February 6th. JPMorgan Chase & Co. increased their target price on shares of LPL Financial from $397.00 to $405.00 and gave the stock an “overweight” rating in a research note on Friday, January 31st. The Goldman Sachs Group increased their target price on shares of LPL Financial from $271.00 to $305.00 and gave the stock a “buy” rating in a research note on Friday, November 1st. Finally, Wells Fargo & Company raised their price target on shares of LPL Financial from $390.00 to $405.00 and gave the company an “overweight” rating in a research note on Friday, January 31st. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and twelve have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, LPL Financial has an average rating of “Moderate Buy” and a consensus price target of $379.17.

LPL Financial Price 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 stock’s 50 day simple moving average is $344.99 and its two-hundred day simple moving average is $285.83. The firm has a market capitalization of $28.45 billion, a PE ratio of 27.06, a price-to-earnings-growth ratio of 0.93 and a beta of 0.87.

LPL Financial (NASDAQ:LPLA) last released its earnings results on Thursday, January 30th. The financial services provider reported $4.25 earnings per share for the quarter, topping analysts’ consensus estimates of $4.01 by $0.24. LPL Financial had a net margin of 8.55% and a return on equity of 49.41%. On average, sell-side analysts forecast that LPL Financial Holdings Inc. will post 19.14 EPS for the current year.

LPL Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 25th. Shareholders of record on Tuesday, March 11th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 0.32%. The ex-dividend date of this dividend is Tuesday, March 11th. LPL Financial’s dividend payout ratio (DPR) is 8.55%.

Insiders Place Their Bets

In other news, CFO Matthew J. Audette sold 28,777 shares of the firm’s stock in a transaction that occurred on Wednesday, February 5th. The shares were sold at an average price of $365.14, for a total transaction of $10,507,633.78. Following the completion of the sale, the chief financial officer now owns 13,663 shares in the company, valued at $4,988,907.82. This trade represents a 67.81 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Aneri Jambusaria sold 305 shares of the firm’s stock in a transaction that occurred on Thursday, December 5th. The stock was sold at an average price of $331.94, for a total transaction of $101,241.70. Following the sale, the director now owns 3,920 shares of the company’s stock, valued at $1,301,204.80. This represents a 7.22 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.30% of the company’s stock.

Institutional Trading of LPL Financial

Hedge funds and other institutional investors have recently made changes to their positions in the company. Graney & King LLC acquired a new stake in shares of LPL Financial during the 4th quarter worth approximately $30,000. Fourth Dimension Wealth LLC acquired a new stake in LPL Financial in the 4th quarter valued at approximately $40,000. Itau Unibanco Holding S.A. acquired a new stake in LPL Financial in the 4th quarter valued at approximately $42,000. Ashton Thomas Securities LLC acquired a new stake in LPL Financial in the 3rd quarter valued at approximately $31,000. Finally, Jones Financial Companies Lllp increased its holdings in LPL Financial by 45.3% in the 4th quarter. Jones Financial Companies Lllp now owns 138 shares of the financial services provider’s stock valued at $45,000 after purchasing an additional 43 shares during 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.