LPL Financial (NASDAQ:LPLA) Trading 1% Higher - Should You Buy?

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

Analyst Ratings Changes

Several equities research analysts have weighed in on LPLA shares. UBS Group increased their price target on LPL Financial from $390.00 to $420.00 and gave the stock a "buy" rating in a research report on Friday, January 31st. JPMorgan Chase & Co. raised their target price on LPL Financial from $397.00 to $405.00 and gave the company an "overweight" rating in a research report on Friday, January 31st. The Goldman Sachs Group raised their target price on LPL Financial from $271.00 to $305.00 and gave the company a "buy" rating in a research report on Friday, November 1st. Barclays raised their target price on LPL Financial from $389.00 to $414.00 and gave the company an "overweight" rating in a research report on Friday, January 31st. Finally, Morgan Stanley raised their target price on LPL Financial from $379.00 to $413.00 and gave the company an "overweight" rating in a research report on Thursday, February 6th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and twelve have issued a buy rating to the company's stock. Based on data from MarketBeat, LPL Financial presently has an average rating of "Moderate Buy" and a consensus target price of $379.17.

LPL Financial Trading Down 2.0 %

The company has a current ratio of 2.16, a quick ratio of 2.16 and a debt-to-equity ratio of 1.60. The company has a fifty day moving average of $348.16 and a 200-day moving average of $288.42. The company has a market capitalization of $27.85 billion, a price-to-earnings ratio of 26.49, a PEG ratio of 0.95 and a beta of 0.87.

LPL Financial (NASDAQ:LPLA - Get Free Report) 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%. As a group, equities research analysts anticipate that LPL Financial Holdings Inc. will post 19.35 earnings per share for the current fiscal 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 related news, Director Aneri Jambusaria sold 305 shares of the stock in a transaction that occurred on Thursday, December 5th. The stock was sold at an average price of $331.94, for a total value of $101,241.70. Following the completion of the transaction, the director now directly owns 3,920 shares in the company, valued at approximately $1,301,204.80. This represents a 7.22 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Matthew J. Audette sold 28,777 shares of the stock in a transaction that occurred on Wednesday, February 5th. The stock was sold at an average price of $365.14, for a total value of $10,507,633.78. Following the completion of the transaction, the chief financial officer now owns 13,663 shares of the company's stock, valued at $4,988,907.82. The trade was a 67.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Anchor Investment Management LLC grew its position in LPL Financial by 0.3% in the fourth quarter. Anchor Investment Management LLC now owns 9,697 shares of the financial services provider's stock worth $3,166,000 after acquiring an additional 28 shares during the period. Colonial Trust Co SC raised its position in LPL Financial by 6.1% in the fourth quarter. Colonial Trust Co SC now owns 505 shares of the financial services provider's stock valued at $165,000 after purchasing an additional 29 shares during the period. Wealth Alliance lifted its stake in LPL Financial by 2.1% during the fourth quarter. Wealth Alliance now owns 1,483 shares of the financial services provider's stock worth $484,000 after purchasing an additional 30 shares in the last quarter. United Capital Financial Advisors LLC lifted its stake in LPL Financial by 2.6% during the fourth quarter. United Capital Financial Advisors LLC now owns 1,203 shares of the financial services provider's stock worth $393,000 after purchasing an additional 31 shares in the last quarter. Finally, Sanchez Wealth Management Group lifted its stake in LPL Financial by 2.1% during the fourth quarter. Sanchez Wealth Management Group now owns 1,686 shares of the financial services provider's stock worth $551,000 after purchasing an additional 35 shares in the last quarter. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

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.