LPL Financial (NASDAQ:LPLA) Stock Price Down 5% – Here’s Why

LPL Financial Holdings Inc. (NASDAQ:LPLA) dropped 5% on Tuesday . The stock traded as low as $356.78 and last traded at $355.56. Approximately 322,915 shares traded hands during trading, a decline of 52% from the average daily volume of 672,040 shares. The stock had previously closed at $374.22.

Wall Street Analyst Weigh In

Several brokerages have recently commented on LPLA. Citigroup boosted 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. TD Cowen upgraded 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 research report on Thursday, December 19th. UBS Group increased their target price on LPL Financial from $390.00 to $420.00 and gave the stock a “buy” rating in a report on Friday, January 31st. Wells Fargo & Company lifted their price target on LPL Financial from $390.00 to $405.00 and gave the company an “overweight” rating in a report on Friday, January 31st. Finally, Keefe, Bruyette & Woods increased their price objective on shares of LPL Financial from $390.00 to $405.00 and gave the stock an “outperform” rating in a report on Friday, January 31st. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and twelve have assigned a buy rating to the company’s stock. According to data from MarketBeat, LPL Financial currently has an average rating of “Moderate Buy” and a consensus target price of $379.17.

LPL Financial Stock Performance

The firm has a market capitalization of $26.56 billion, a P/E ratio of 25.11, a P/E/G ratio of 0.94 and a beta of 0.87. 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’s 50 day moving average is $349.88 and its two-hundred day moving average is $292.24.

LPL Financial (NASDAQ:LPLA) last issued its earnings results on Thursday, January 30th. The financial services provider reported $4.25 EPS for the quarter, beating the consensus estimate 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 analysts anticipate that LPL Financial Holdings Inc. will post 19.35 earnings per share for the current fiscal year.

LPL Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 25th. Shareholders of record on Tuesday, March 11th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 0.34%. The ex-dividend date of this dividend is Tuesday, March 11th. LPL Financial’s dividend payout ratio (DPR) is currently 8.55%.

Insider Transactions at LPL Financial

In other news, CFO Matthew J. Audette sold 28,777 shares of the business’s stock in a transaction on Wednesday, February 5th. The shares were 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Aneri Jambusaria sold 305 shares of the company’s stock in a transaction on Thursday, December 5th. The shares were 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 owns 3,920 shares of the company’s stock, valued at approximately $1,301,204.80. This represents a 7.22 % decrease in their position. The disclosure for this sale can be found here. Corporate 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 the business. Graney & King LLC acquired a new stake in LPL Financial during the 4th quarter worth approximately $30,000. Ashton Thomas Securities LLC acquired a new position in shares of LPL Financial in the third quarter valued at approximately $31,000. Fourth Dimension Wealth LLC bought a new stake in shares of LPL Financial during the fourth quarter worth $40,000. Itau Unibanco Holding S.A. bought a new stake in LPL Financial in the 4th quarter valued at $42,000. Finally, Brooklyn Investment Group acquired a new position in LPL Financial in the 3rd quarter worth $43,000. Institutional investors own 95.66% of the company’s stock.

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.