LPL Financial (LPLA) Stock Price, News & Analysis

Company Overview

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. The company also provides fee-based platforms that provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. In addition, it offers money market products; and retirement solutions for commission-and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, the company provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services for estates and families, as well as insurance brokerage general agency services; and technology products, such as proposal generation, investment analytics, and portfolio modeling. The company was formerly known as LPL Investment Holdings Inc. and changed its name to LPL Financial Holdings Inc. in June 2012. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California.

Key Stats

• Today's Range: $317.09 to $326.76
• 50-Day Range: $205.71 to $317.93
• 52-Week Range: $187.19 to $326.76
• Volume: 485,083 shs
• Average Volume: 738,181 shs
• Market Capitalization: $24.20 billion
• P/E Ratio: 24.30
• Dividend Yield: 0.37%
• Price Target: $286.92
• Consensus Rating: Moderate Buy

LPL Financial Stock Analysis - MarketRank™

LPL Financial scored higher than 96% of companies evaluated by MarketBeat, and ranked 55th out of 916 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

LPL Financial has received a consensus rating of Moderate Buy. The company's average rating score is 2.57, and is based on 9 buy ratings, 4 hold ratings, and 1 sell rating.

Amount of Analyst Coverage

LPL Financial has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 16.29%

Earnings Growth

Earnings for LPL Financial are expected to grow by 16.29% in the coming year, from $16.08 to $18.70 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of LPL Financial is 24.30, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 125.60.

Price to Earnings Ratio vs. Sector

The P/E ratio of LPL Financial is 24.30, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 46.79.

Price to Earnings Growth Ratio

LPL Financial has a PEG Ratio of 1.54. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

LPL Financial has a P/B Ratio of 8.73. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.22% of the float of LPL Financial has been sold short.

Short Interest Ratio / Days to Cover

LPL Financial has a short interest ratio ("days to cover") of 1.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in LPL Financial has recently decreased by 19.71%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

LPL Financial has a dividend yield of 0.38%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

LPL Financial does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of LPL Financial is 9.02%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, LPL Financial will have a dividend payout ratio of 6.42% next year. This indicates that LPL Financial will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.1 / 5
• Environmental Score: -0.30

Percentage of Shares Shorted

1.22% of the float of LPL Financial has been sold short.

Short Interest Ratio / Days to Cover

LPL Financial has a short interest ratio ("days to cover") of 1.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in LPL Financial has recently decreased by 19.71%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 4.1 / 5
• News Sentiment: 1.33

News Sentiment

LPL Financial has a news sentiment score of 1.33. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.78 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 15 news articles for LPL Financial this week, compared to 12 articles on an average week.

Search Interest

7 people have searched for LPLA on MarketBeat in the last 30 days. This is an increase of 133% compared to the previous 30 days.

MarketBeat Follows

27 people have added LPL Financial to their MarketBeat watchlist in the last 30 days. This is an increase of 575% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, LPL Financial insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 1.30% of the stock of LPL Financial is held by insiders.

Percentage Held by Institutions

95.66% of the stock of LPL Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

LPLA Stock Analysis - Frequently Asked Questions

How have LPLA shares performed this year?

LPL Financial's stock was trading at $227.62 at the beginning of the year. Since then, LPLA shares have increased by 42.0% and is now trading at $323.24.
View the best growth stocks for 2024 here.

How were LPL Financial's earnings last quarter?

LPL Financial Holdings Inc. (NASDAQ:LPLA) issued its earnings results on Wednesday, October, 30th. The financial services provider reported $4.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.69 by $0.47. The firm's quarterly revenue was up 6.0% on a year-over-year basis.

Does LPL Financial have any subsidiaries?

The following companies are subsidiaries of LPL Financial: BlazePortfolio, Lucia Securities, AdvisoryWorld, National Planning Holdings, Fortigent LLC, AdvisoryWorld, Allen & Company of Florida LLC, and others.

Who are LPL Financial's major shareholders?

Top institutional shareholders of LPL Financial include FMR LLC (4.44%), Janus Henderson Group PLC (3.38%), State Street Corp (2.24%) and WCM Investment Management LLC (2.21%). Insiders that own company stock include Dan H Arnold, Sallie R Larsen, Michelle Oroschakoff, Richard Steinmeier, Matthew J Audette, Kabir Sethi, Matthew Enyedi, Brent Simonich, William Francis Glavin Jr, Aneri Jambusaria, George Burton White and Edward Fandrey.
View institutional ownership trends.

How do I buy shares of LPL Financial?

Shares of LPLA stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of LPL Financial own?

Based on aggregate information from My MarketBeat watchlists, some other companies that LPL Financial investors own include Waste Connections (WCN), The RMR Group (RMR), iShares Micro-Cap ETF (IWC), DiamondRock Hospitality (DRH), American Water Works (AWK), AUO (AUOTY) and Triple Flag Precious Metals (TFPM).

Company Calendar

• Ex-Dividend for 8/23 Dividend: 8/09/2024
• Dividend Payable: 8/23/2024
• Last Earnings: 10/30/2024
• Ex-Dividend for 12/2 Dividend: 11/14/2024
• Today: 11/21/2024
• Dividend Payable: 12/02/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 2/06/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: Security & commodity brokers, dealers, exchanges & services
• Sub-Industry: Investment Banking & Brokerage
• Current Symbol: NASDAQ:LPLA
• CUSIP: 50212V10
• CIK: 1397911
• Web: www.lpl.com
• Phone: (800) 877-7210
• Fax: N/A
• Employees: 8,400
• Year Founded: 1989

Price Target and Rating

• Average Stock Price Target: $286.92
• High Stock Price Target: $315.00
• Low Stock Price Target: $240.00
• Potential Upside/Downside: -11.2%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.57
• Research Coverage: 14 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $13.30
• Trailing P/E Ratio: 24.30
• Forward P/E Ratio: 20.10
• P/E Growth: 1.54
• Net Income: $1.07 billion
• Net Margins: 8.73%
• Pretax Margin: 11.68%
• Return on Equity: 49.47%
• Return on Assets: 10.63%

Debt

• Debt-to-Equity Ratio: 1.60
• Current Ratio: 2.16
• Quick Ratio: 2.16

Sales & Book Value

• Annual Sales: $10.05 billion
• Price / Sales: 2.41
• Cash Flow: $21.56 per share
• Price / Cash Flow: 14.99
• Book Value: $37.02 per share
• Price / Book: 8.73

Miscellaneous

• Outstanding Shares: 74,880,000
• Free Float: 73,907,000
• Market Cap: $24.20 billion
• Optionable: Optionable
• Beta: 0.85