LPL Financial (NASDAQ:LPLA) Reaches New 12-Month High – Here’s Why

LPL Financial Holdings Inc. (NASDAQ:LPLA) hit a new 52-week high during trading on Thursday . The company traded as high as $323.21 and last traded at $323.21, with a volume of 73845 shares traded. The stock had previously closed at $317.05.

Analyst Ratings Changes

A number of research firms have issued reports on LPLA. Wells Fargo & Company upgraded LPL Financial from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $235.00 to $285.00 in a research report on Wednesday, October 9th. Jefferies Financial Group decreased their target price on LPL Financial from $309.00 to $282.00 and set a “buy” rating on the stock in a research report on Friday, October 4th. Keefe, Bruyette & Woods decreased their target price on LPL Financial from $326.00 to $315.00 and set an “outperform” rating on the stock in a research report on Friday, July 26th. TD Cowen lifted their target price on LPL Financial from $271.00 to $277.00 and gave the company a “hold” rating in a research report on Thursday, October 31st. Finally, Morgan Stanley lifted their target price on LPL Financial from $303.00 to $309.00 and gave the company an “overweight” rating in a research report on Thursday, October 17th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and nine have given a buy rating to the company. According to data from MarketBeat.com, LPL Financial presently has a consensus rating of “Moderate Buy” and a consensus price target of $286.92.

LPL Financial Stock Performance

The stock has a 50 day moving average of $260.89 and a 200 day moving average of $252.81. The company has a quick ratio of 2.16, a current ratio of 2.16 and a debt-to-equity ratio of 1.60. The company has a market capitalization of $24.47 billion, a price-to-earnings ratio of 24.58, a price-to-earnings-growth ratio of 1.54 and a beta of 0.85.

LPL Financial (NASDAQ:LPLA) last posted its quarterly earnings data on Wednesday, October 30th. The financial services provider reported $4.16 EPS for the quarter, topping analysts’ consensus estimates of $3.69 by $0.47. The company had revenue of $3.11 billion for the quarter, compared to analyst estimates of $3.04 billion. LPL Financial had a return on equity of 49.47% and a net margin of 8.73%. The firm’s quarterly revenue was up 6.0% on a year-over-year basis. During the same period in the previous year, the firm earned $3.74 earnings per share. As a group, analysts predict that LPL Financial Holdings Inc. will post 16.08 EPS for the current year.

LPL Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 2nd. Shareholders of record on Thursday, November 14th will be issued a $0.30 dividend. The ex-dividend date is Thursday, November 14th. This represents a $1.20 dividend on an annualized basis and a yield of 0.37%. LPL Financial’s payout ratio is currently 9.02%.

Institutional Investors Weigh In On LPL Financial

Hedge funds have recently added to or reduced their stakes in the business. Acadian Asset Management LLC increased its holdings in LPL Financial by 533.8% in the first quarter. Acadian Asset Management LLC now owns 5,153 shares of the financial services provider’s stock worth $1,359,000 after purchasing an additional 4,340 shares in the last quarter. Swedbank AB bought a new stake in LPL Financial in the first quarter worth approximately $3,648,000. Raymond James & Associates increased its holdings in LPL Financial by 5.4% in the second quarter. Raymond James & Associates now owns 394,091 shares of the financial services provider’s stock worth $110,070,000 after purchasing an additional 20,123 shares in the last quarter. Coronation Fund Managers Ltd. increased its holdings in LPL Financial by 68.2% in the third quarter. Coronation Fund Managers Ltd. now owns 217,451 shares of the financial services provider’s stock worth $50,586,000 after purchasing an additional 88,196 shares in the last quarter. Finally, Magnetar Financial LLC bought a new stake in shares of LPL Financial during the first quarter valued at approximately $918,000. 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.