LPL Financial (NASDAQ:LPLA) Stock Price Down 6.5% – Here’s Why

LPL Financial Holdings Inc. (NASDAQ:LPLA)’s stock price fell 6.5% during mid-day trading on Tuesday . The stock traded as low as $330.69 and last traded at $335.70. 781,950 shares traded hands during trading, an increase of 9% from the average session volume of 717,654 shares. The stock had previously closed at $358.86.

Analyst Upgrades and Downgrades

LPLA has been the topic of a number of recent research reports. JPMorgan Chase & Co. upped their target price on LPL Financial from $397.00 to $405.00 and gave the company an “overweight” rating in a research note on Friday, January 31st. JMP Securities restated a “market outperform” rating and set a $435.00 price objective on shares of LPL Financial in a report on Friday, January 31st. Barclays raised their price target on shares of LPL Financial from $389.00 to $414.00 and gave the company an “overweight” rating in a report on Friday, January 31st. Keefe, Bruyette & Woods boosted their price objective on LPL Financial from $390.00 to $405.00 and gave the stock an “outperform” rating in a research note on Friday, January 31st. Finally, Wells Fargo & Company upped their target price on shares of LPL Financial from $390.00 to $405.00 and gave the company an “overweight” rating in a research note on Friday, January 31st. One analyst has rated the stock with a sell rating, one has given a hold rating and twelve have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $379.17.

LPL Financial Stock Down 6.2 %

The business’s 50 day moving average is $353.39 and its 200 day moving average is $297.74. The company has a debt-to-equity ratio of 1.60, a quick ratio of 2.16 and a current ratio of 2.16. The stock has a market cap of $25.09 billion, a price-to-earnings ratio of 23.96, a price-to-earnings-growth ratio of 0.94 and a beta of 0.87.

LPL Financial (NASDAQ:LPLA) last issued its earnings results on Thursday, January 30th. The financial services provider reported $4.25 earnings per share for the quarter, beating analysts’ consensus estimates of $4.01 by $0.24. LPL Financial had a return on equity of 49.41% and a net margin of 8.55%. Equities analysts expect that LPL Financial Holdings Inc. will post 19.35 earnings per share for the current year.

LPL Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 25th. Stockholders of record on Tuesday, March 11th will be issued a dividend of $0.30 per share. The ex-dividend date of this dividend is Tuesday, March 11th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.36%. LPL Financial’s dividend payout ratio is currently 8.55%.

Insiders Place Their Bets

In related news, CFO Matthew J. Audette sold 28,777 shares of the business’s stock in a transaction dated Wednesday, February 5th. The stock was sold at an average price of $365.14, for a total transaction 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 approximately $4,988,907.82. The trade was a 67.81 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Aneri Jambusaria sold 305 shares of the stock in a transaction that occurred 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 completion of the sale, the director now directly owns 3,920 shares of the company’s stock, valued at $1,301,204.80. This represents a 7.22 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 34,770 shares of company stock valued at $12,663,312 over the last quarter. Insiders own 1.30% of the company’s stock.

Institutional Trading of LPL Financial

A number of institutional investors and hedge funds have recently modified their holdings of the company. Graney & King LLC bought a new stake in LPL Financial in the fourth quarter valued at about $30,000. Ashton Thomas Securities LLC bought a new stake in shares of LPL Financial in the 3rd quarter valued at approximately $31,000. Fourth Dimension Wealth LLC bought a new stake in shares of LPL Financial in the 4th quarter valued at approximately $40,000. Itau Unibanco Holding S.A. acquired a new position in shares of LPL Financial in the 4th quarter worth approximately $42,000. Finally, Brooklyn Investment Group bought a new position in shares of LPL Financial during the third quarter valued at $43,000. 95.66% of the stock is currently owned by 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.