LPL Financial (NASDAQ:LPLA) Sets New 12-Month High – Should You Buy?

LPL Financial Holdings Inc. (NASDAQ:LPLA) hit a new 52-week high on Thursday . The company traded as high as $347.74 and last traded at $344.54, with a volume of 30675 shares traded. The stock had previously closed at $338.25.

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. The Goldman Sachs Group increased their target price on LPL Financial from $271.00 to $305.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Morgan Stanley raised their price objective on LPL Financial from $303.00 to $309.00 and gave the company an “overweight” rating in a research report on Thursday, October 17th. TD Cowen raised shares of LPL Financial from a “hold” rating to a “buy” rating and upped their price target for the company from $277.00 to $413.00 in a research note on Thursday, December 19th. Keefe, Bruyette & Woods raised their price objective on LPL Financial from $325.00 to $390.00 and gave the company an “outperform” rating in a research note on Friday, December 20th. Finally, Wells Fargo & Company increased their price target on LPL Financial from $310.00 to $390.00 and gave the company an “overweight” rating in a report on Thursday, December 12th. One 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. Based on data from MarketBeat, LPL Financial presently has an average rating of “Moderate Buy” and a consensus price target of $351.50.

LPL Financial Price Performance

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 firm has a market capitalization of $25.94 billion, a PE ratio of 26.04, a P/E/G ratio of 1.03 and a beta of 0.87. The stock has a fifty day moving average price of $326.06 and a 200-day moving average price of $266.91.

LPL Financial (NASDAQ:LPLA) last announced its quarterly earnings data on Wednesday, October 30th. The financial services provider reported $4.16 EPS for the quarter, beating the consensus estimate of $3.69 by $0.47. The business had revenue of $3.11 billion during the quarter, compared to analysts’ expectations of $3.04 billion. LPL Financial had a net margin of 8.73% and a return on equity of 49.47%. The business’s quarterly revenue was up 6.0% compared to the same quarter last year. During the same period in the previous year, the business posted $3.74 EPS. Sell-side analysts forecast that LPL Financial Holdings Inc. will post 16.07 EPS for the current fiscal year.

LPL Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, December 2nd. Shareholders of record on Thursday, November 14th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 0.35%. The ex-dividend date of this dividend was Thursday, November 14th. LPL Financial’s payout ratio is 9.02%.

Insider Activity at LPL Financial

In other LPL Financial news, Director Aneri Jambusaria sold 305 shares of the stock in a transaction dated 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 owns 3,920 shares in the company, valued at approximately $1,301,204.80. This represents a 7.22 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On LPL Financial

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LPLA. Ashton Thomas Private Wealth LLC purchased a new stake in shares of LPL Financial during the 2nd quarter valued at approximately $25,000. Ashton Thomas Securities LLC acquired a new position in shares of LPL Financial during the third quarter worth about $31,000. Paladin Wealth LLC purchased a new stake in shares of LPL Financial during the third quarter worth approximately $34,000. Brooklyn Investment Group acquired a new stake in LPL Financial in the third quarter valued at approximately $43,000. Finally, First Horizon Advisors Inc. lifted its stake in LPL Financial by 32.3% in the third quarter. First Horizon Advisors Inc. now owns 385 shares of the financial services provider’s stock worth $90,000 after acquiring an additional 94 shares during the last quarter. Institutional investors and hedge funds own 95.66% of the company’s stock.

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.