LPL Financial (NASDAQ:LPLA) Reaches New 12-Month High – Still a Buy?

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

Analyst Upgrades and Downgrades

LPLA has been the subject of a number of analyst reports. JMP Securities restated a “market outperform” rating and set a $310.00 price target on shares of LPL Financial in a research note on Wednesday, October 9th. Wells Fargo & Company raised their target price on LPL Financial from $310.00 to $390.00 and gave the stock an “overweight” rating in a research report on Thursday, December 12th. Keefe, Bruyette & Woods upped their price target on LPL Financial from $325.00 to $390.00 and gave the company an “outperform” rating in a research report on Friday, December 20th. TD Cowen raised LPL Financial from a “hold” rating to a “buy” rating and lifted their price objective for the company from $277.00 to $413.00 in a report on Thursday, December 19th. Finally, UBS Group raised shares of LPL Financial from a “neutral” rating to a “buy” rating and set a $390.00 target price on the stock in a report on Monday, January 6th. 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 company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $351.50.

LPL Financial Price Performance

The company has a debt-to-equity ratio of 1.60, a current ratio of 2.16 and a quick ratio of 2.16. The company’s 50 day moving average price is $329.74 and its 200 day moving average price is $269.38. The firm has a market capitalization of $26.87 billion, a P/E ratio of 26.98, a PEG ratio of 1.08 and a beta of 0.87.

LPL Financial (NASDAQ:LPLA) last released 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. The company had revenue of $3.11 billion during the quarter, compared to analysts’ expectations of $3.04 billion. LPL Financial had a return on equity of 49.47% and a net margin of 8.73%. The business’s revenue for the quarter was up 6.0% on a year-over-year basis. During the same period last year, the firm earned $3.74 EPS. As a group, sell-side analysts anticipate that LPL Financial Holdings Inc. will post 16.17 EPS for the current fiscal year.

LPL Financial Dividend Announcement

The company also recently disclosed 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. The ex-dividend date was Thursday, November 14th. This represents a $1.20 annualized dividend and a yield of 0.33%. LPL Financial’s dividend payout ratio is currently 9.02%.

Insider Activity

In related news, Director Aneri Jambusaria sold 305 shares of LPL Financial stock in a transaction 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 completion of the sale, the director now directly owns 3,920 shares of the company’s stock, valued at $1,301,204.80. The trade was a 7.22 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On LPL Financial

Several institutional investors have recently modified their holdings of LPLA. Ashton Thomas Securities LLC bought a new position in LPL Financial during the 3rd quarter worth approximately $31,000. Paladin Wealth LLC bought a new stake in LPL Financial in the 3rd quarter valued at $34,000. Brooklyn Investment Group acquired a new position in LPL Financial in the 3rd quarter worth $43,000. R Squared Ltd bought a new position in LPL Financial during the 4th quarter worth about $78,000. Finally, Quarry LP raised its stake in shares of LPL Financial by 45.3% in the 2nd quarter. Quarry LP now owns 327 shares of the financial services provider’s stock valued at $91,000 after purchasing an additional 102 shares during the period. 95.66% of the stock is currently owned by institutional investors and hedge funds.

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.