LPL Financial (NASDAQ:LPLA) Shares Gap Up After Better-Than-Expected Earnings

LPL Financial Holdings Inc. (NASDAQ:LPLA)’s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $361.80, but opened at $375.74. LPL Financial shares last traded at $362.04, with a volume of 128,072 shares traded.

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 return on equity of 49.47% and a net margin of 8.73%.

LPL Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 25th. Stockholders of record on Tuesday, March 11th will be paid a dividend of $0.30 per share. The ex-dividend date is Tuesday, March 11th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.33%. LPL Financial’s payout ratio is 8.55%.

Wall Street Analyst Weigh In

LPLA has been the topic of a number of research analyst reports. Jefferies Financial Group dropped their price target on LPL Financial from $309.00 to $282.00 and set a “buy” rating on the stock in a research note on Friday, October 4th. TD Cowen raised LPL Financial from a “hold” rating to a “buy” rating and lifted their target price for the stock from $277.00 to $413.00 in a report on Thursday, December 19th. Keefe, Bruyette & Woods lifted their target price on LPL Financial from $390.00 to $405.00 and gave the stock an “outperform” rating in a report on Friday. Citigroup lifted their target price on LPL Financial from $310.00 to $385.00 and gave the stock a “buy” rating in a report on Friday, January 10th. Finally, JMP Securities reaffirmed a “market outperform” rating and set a $435.00 target price on shares of LPL Financial in a report on Friday. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and twelve have given a buy rating to the company’s stock. According to data from MarketBeat.com, LPL Financial has an average rating of “Moderate Buy” and an average price target of $370.50.

Insider Buying and Selling at LPL Financial

In related 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 value of $101,241.70. Following the sale, the director now owns 3,920 shares of the company’s stock, valued at approximately $1,301,204.80. This trade represents a 7.22 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.30% of the stock is currently owned by corporate insiders.

Institutional Trading of LPL Financial

A number of institutional investors and hedge funds have recently modified their holdings of the stock. FMR LLC increased its stake in shares of LPL Financial by 24.4% during the third quarter. FMR LLC now owns 3,322,571 shares of the financial services provider’s stock worth $772,930,000 after purchasing an additional 650,675 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of LPL Financial by 2.6% during the third quarter. Geode Capital Management LLC now owns 1,436,831 shares of the financial services provider’s stock worth $333,581,000 after purchasing an additional 36,474 shares in the last quarter. JPMorgan Chase & Co. increased its stake in shares of LPL Financial by 27.6% during the third quarter. JPMorgan Chase & Co. now owns 1,275,136 shares of the financial services provider’s stock worth $296,635,000 after purchasing an additional 276,166 shares in the last quarter. Southpoint Capital Advisors LP increased its stake in shares of LPL Financial by 50.0% during the third quarter. Southpoint Capital Advisors LP now owns 750,000 shares of the financial services provider’s stock worth $174,472,000 after purchasing an additional 250,000 shares in the last quarter. Finally, Westfield Capital Management Co. LP increased its stake in shares of LPL Financial by 21.6% during the third quarter. Westfield Capital Management Co. LP now owns 710,867 shares of the financial services provider’s stock worth $165,369,000 after purchasing an additional 126,266 shares in the last quarter. Hedge funds and other institutional investors own 95.66% of the company’s stock.

LPL Financial Stock Up 1.4 %

The firm has a market cap of $27.47 billion, a PE ratio of 27.59, a PEG ratio of 1.11 and a beta of 0.87. The business’s 50 day moving average price is $335.66 and its 200 day moving average price is $273.82. The company has a debt-to-equity ratio of 1.60, a current ratio of 2.16 and a quick ratio of 2.16.

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.