LPL Financial (NASDAQ:LPLA) Sets New 1-Year High - Time to Buy?

LPL Financial Holdings Inc. (NASDAQ:LPLA - Get Free Report) hit a new 52-week high on Thursday . The stock traded as high as $334.83 and last traded at $331.00, with a volume of 81570 shares. The stock had previously closed at $322.06.

Analyst Ratings Changes

Several research firms have recently issued reports on LPLA. StockNews.com upgraded shares of LPL Financial from a "sell" rating to a "hold" rating in a report on Saturday, November 9th. Citigroup upped their price target on shares of LPL Financial from $285.00 to $310.00 and gave the company a "buy" rating in a research note on Thursday, October 31st. JMP Securities reiterated a "market outperform" rating and set a $310.00 price objective on shares of LPL Financial in a research note on Wednesday, October 9th. The Goldman Sachs Group boosted their price objective on shares of LPL Financial from $271.00 to $305.00 and gave the company a "buy" rating in a report on Friday, November 1st. Finally, 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 note on Thursday, December 12th. One analyst has rated the stock with a sell rating, three have issued a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $316.50.

LPL Financial Stock Performance

The firm has a fifty day moving average of $298.95 and a 200 day moving average of $259.75. 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 stock has a market capitalization of $24.54 billion, a price-to-earnings ratio of 24.64, a price-to-earnings-growth ratio of 1.61 and a beta of 0.86.

LPL Financial (NASDAQ:LPLA - Get Free Report) last issued 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. LPL Financial had a net margin of 8.73% and a return on equity of 49.47%. The business had revenue of $3.11 billion for the quarter, compared to analysts' expectations of $3.04 billion. During the same quarter last year, the company earned $3.74 EPS. The business's revenue was up 6.0% on a year-over-year basis. On average, sell-side analysts anticipate that LPL Financial Holdings Inc. will post 16.1 earnings per share for the current fiscal year.

LPL Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 2nd. Shareholders of record on Thursday, November 14th were given a $0.30 dividend. The ex-dividend date of this dividend was Thursday, November 14th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.37%. LPL Financial's dividend payout ratio (DPR) is currently 9.02%.

Insider Transactions 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. Corporate insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On LPL Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. FMR LLC lifted its stake in LPL Financial by 24.4% in the 3rd quarter. FMR LLC now owns 3,322,571 shares of the financial services provider's stock valued at $772,930,000 after buying an additional 650,675 shares in the last quarter. Southpoint Capital Advisors LP boosted its stake in shares of LPL Financial by 50.0% in the third quarter. Southpoint Capital Advisors LP now owns 750,000 shares of the financial services provider's stock worth $174,472,000 after acquiring an additional 250,000 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC increased its position in shares of LPL Financial by 9.9% during the second quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,589,793 shares of the financial services provider's stock worth $723,329,000 after purchasing an additional 233,242 shares in the last quarter. Maverick Capital Ltd. lifted its holdings in LPL Financial by 82.0% in the 3rd quarter. Maverick Capital Ltd. now owns 497,075 shares of the financial services provider's stock valued at $115,635,000 after purchasing an additional 223,931 shares in the last quarter. Finally, Azora Capital LP boosted its stake in LPL Financial by 52.2% during the 3rd quarter. Azora Capital LP now owns 643,544 shares of the financial services provider's stock worth $149,708,000 after purchasing an additional 220,622 shares during the last quarter. 95.66% of the stock is owned by hedge funds and other 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.