StockNews.com Downgrades LPL Financial (NASDAQ:LPLA) to Sell

LPL Financial (NASDAQ:LPLA) was downgraded by equities research analysts at StockNews.com from a “hold” rating to a “sell” rating in a report issued on Monday.

A number of other equities analysts also recently issued reports on LPLA. Barclays increased their price objective on shares of LPL Financial from $389.00 to $414.00 and gave the company an “overweight” rating in a research note on Friday, January 31st. Morgan Stanley increased 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. Keefe, Bruyette & Woods increased their target price on LPL Financial from $390.00 to $405.00 and gave the company an “outperform” rating in a research report on Friday, January 31st. Wells Fargo & Company lifted their target price on LPL Financial from $390.00 to $405.00 and gave the company an “overweight” rating in a research note on Friday, January 31st. Finally, Citigroup boosted their target price on shares of LPL Financial from $310.00 to $385.00 and gave the stock a “buy” rating in a report on Friday, January 10th. Two analysts have rated the stock with a sell rating and twelve have assigned a buy rating to the stock. Based on data from MarketBeat.com, LPL Financial has a consensus rating of “Moderate Buy” and an average price target of $379.17.

LPL Financial Trading Up 2.0 %

NASDAQ:LPLA traded up $6.30 during midday trading on Monday, hitting $328.29. The stock had a trading volume of 772,427 shares, compared to its average volume of 736,614. LPL Financial has a one year low of $187.19 and a one year high of $384.04. The company has a quick ratio of 2.16, a current ratio of 2.16 and a debt-to-equity ratio of 1.60. The stock has a 50-day moving average of $352.19 and a 200 day moving average of $305.00. The company has a market capitalization of $24.52 billion, a price-to-earnings ratio of 23.38, a PEG ratio of 0.94 and a beta of 0.82.

LPL Financial (NASDAQ:LPLA) last posted its quarterly earnings results on Thursday, January 30th. The financial services provider reported $4.25 earnings per share (EPS) for the quarter, topping 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%. As a group, sell-side analysts forecast that LPL Financial will post 19.35 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Matthew J. Audette sold 28,777 shares of LPL Financial 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 sale, 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Marc Eliot Cohen sold 1,100 shares of the business’s stock in a transaction on Wednesday, February 26th. The shares were sold at an average price of $365.85, for a total transaction of $402,435.00. Following the transaction, the director now owns 4,075 shares of the company’s stock, valued at $1,490,838.75. This represents a 21.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 34,465 shares of company stock valued at $12,562,070. 1.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Principal Financial Group Inc. lifted its stake in shares of LPL Financial by 15.7% in the 3rd quarter. Principal Financial Group Inc. now owns 25,418 shares of the financial services provider’s stock valued at $5,913,000 after purchasing an additional 3,444 shares during the period. Los Angeles Capital Management LLC acquired a new position in shares of LPL Financial in the 3rd quarter valued at $305,000. GSA Capital Partners LLP raised its position in shares of LPL Financial by 116.9% in the third quarter. GSA Capital Partners LLP now owns 2,978 shares of the financial services provider’s stock worth $693,000 after acquiring an additional 1,605 shares during the period. Metis Global Partners LLC raised its position in shares of LPL Financial by 5.1% in the third quarter. Metis Global Partners LLC now owns 945 shares of the financial services provider’s stock worth $220,000 after acquiring an additional 46 shares during the period. Finally, OneDigital Investment Advisors LLC raised its position in shares of LPL Financial by 27.9% in the third quarter. OneDigital Investment Advisors LLC now owns 5,081 shares of the financial services provider’s stock worth $1,182,000 after acquiring an additional 1,107 shares during the period. 95.66% of the stock is owned by institutional investors and hedge funds.

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.