Short Interest in LPL Financial Holdings Inc. (NASDAQ:LPLA) Declines By 40.4%

LPL Financial Holdings Inc. (NASDAQ:LPLA) was the target of a large decline in short interest during the month of July. As of July 31st, there was short interest totaling 2,894,304 shares, a decline of 40.4% from the July 15th total of 4,852,571 shares. Based on an average trading volume of 720,682 shares, the days-to-cover ratio is currently 4.0 days. Currently, 3.7% of the shares of the company are sold short.

LPL Financial Stock Performance

Shares of LPLA traded up $0.50 during mid-day trading on Wednesday, reaching $369.23. 102,065 shares of the company’s stock traded hands, compared to its average volume of 932,319. The company has a debt-to-equity ratio of 1.30, a quick ratio of 2.39 and a current ratio of 2.39. The business’s 50-day moving average price is $322.50 and its 200-day moving average price is $315.64. The stock has a market capitalization of $29.07 billion, a P/E ratio of 29.49, a price-to-earnings-growth ratio of 0.62 and a beta of 0.48. LPL Financial has a 12 month low of $260.15 and a 12 month high of $400.16.

LPL Financial (NASDAQ:LPLA) last issued its quarterly earnings data on Thursday, July 30th. The financial services provider reported $5.84 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.39 by $0.45. LPL Financial had a return on equity of 32.20% and a net margin of 5.13%.The business had revenue of $5.19 billion during the quarter, compared to analyst estimates of $5.04 billion. During the same period in the prior year, the company posted $4.51 EPS. The business’s revenue for the quarter was up 35.2% compared to the same quarter last year. Equities analysts predict that LPL Financial will post 24.09 earnings per share for the current year.

LPL Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.20 annualized dividend and a yield of 0.3%. LPL Financial’s dividend payout ratio is presently 9.57%.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on LPLA. JPMorgan Chase & Co. upped their target price on LPL Financial from $408.00 to $428.00 and gave the company an “overweight” rating in a report on Friday, July 31st. BMO Capital Markets raised their price target on LPL Financial from $300.00 to $390.00 and gave the stock an “outperform” rating in a report on Monday, August 3rd. Barclays boosted their price objective on LPL Financial from $394.00 to $401.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. Morgan Stanley increased their target price on LPL Financial from $374.00 to $387.00 and gave the stock an “overweight” rating in a research report on Friday, July 10th. Finally, UBS Group cut their target price on LPL Financial from $395.00 to $391.00 and set a “buy” rating on the stock in a research note on Wednesday, July 8th. Twelve analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, LPL Financial presently has an average rating of “Moderate Buy” and an average target price of $406.69.

Insider Activity at LPL Financial

In other LPL Financial news, Director Aneri Jambusaria sold 308 shares of LPL Financial stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $306.00, for a total value of $94,248.00. Following the completion of the transaction, the director owned 6,415 shares of the company’s stock, valued at $1,962,990. The trade was a 4.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Enyedi sold 1,000 shares of the business’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $352.72, for a total transaction of $352,720.00. Following the sale, the director owned 13,121 shares of the company’s stock, valued at approximately $4,628,039.12. The trade was a 7.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.60% of the company’s stock.

Hedge Funds Weigh In On LPL Financial

Institutional investors and hedge funds have recently bought and sold shares of the stock. Osterweis Capital Management Inc. acquired a new stake in shares of LPL Financial during the 2nd quarter valued at $26,000. Clearstead Advisors LLC raised its stake in LPL Financial by 3,650.0% during the 4th quarter. Clearstead Advisors LLC now owns 75 shares of the financial services provider’s stock valued at $27,000 after purchasing an additional 73 shares during the period. Core Wealth Advisors LLC acquired a new position in LPL Financial during the fourth quarter valued at $36,000. Physician Wealth Advisors Inc. increased its holdings in shares of LPL Financial by 580.0% in the 1st quarter. Physician Wealth Advisors Inc. now owns 136 shares of the financial services provider’s stock valued at $41,000 after purchasing an additional 116 shares during the period. Finally, Pinpoint Asset Management Singapore Pte. Ltd. acquired a new position in LPL Financial in the 4th quarter valued at approximately $50,000. Institutional investors own 95.66% of the company’s stock.

About LPL Financial

LPL Financial (NASDAQ: LPLA) is a U.S.-focused financial services firm that provides brokerage, custodial and advisory platforms to independent financial advisors, registered investment advisers and institutions. Operating primarily as an independent broker-dealer and custodian, the company supports a network of advisors with the operational, compliance and clearing infrastructure needed to manage client accounts and deliver investment advice outside of traditional wirehouse models.

The firm’s product and service offerings include trade execution and clearing, custody services, retirement plan services, model portfolio and advisory platforms, wealth management technology, investment research and product access across equities, fixed income, mutual funds, exchange-traded funds and insurance and annuity solutions.