Stephens Inc. Reduces Stake in LPL Financial by 24.9%

Stephens Inc. AR has reduced its holdings in LPL Financial Holdings Inc. (NASDAQ:LPLA) by 24.9% during the second quarter of 2023. According to its latest Form 13F filing with the Securities and Exchange Commission, the firm sold 562 shares, bringing its total to 1,696 shares. As of the end of the quarter, these shares were valued at approximately $636,000.

This move comes amid a broader trend, as several large investors have adjusted their stakes in LPL Financial. Notably, Dodge & Cox significantly increased its holdings by 224.1% in the first quarter, now owning 1,523,460 shares valued at $498.4 million. Moreover, Principal Financial Group Inc. raised its stake by an astonishing 1,453.3%, acquiring 1,038,683 shares worth around $339.8 million.

In addition, Jennison Associates LLC expanded its holdings by 786.2%, now possessing 959,371 shares valued at $313.8 million. Other institutional players, such as AllianceBernstein L.P. and Egerton Capital UK LLP, also increased their investments, with growth rates of 550.5% and 238.1%, respectively. Currently, institutional investors own approximately 95.66% of LPL Financial stock.

Market Analysts Weigh In

Market analysts have begun to express their opinions on LPL Financial’s stock. The Goldman Sachs Group initiated coverage on September 12, 2023, assigning a “buy” rating and setting a target price of $405.00. Conversely, Rothschild & Co Redburn downgraded the stock to a “neutral” rating with a target price of $390.00 on September 19, 2023.

On October 9, 2023, Citigroup reaffirmed an “outperform” rating, while Raymond James Financial upgraded its rating from “underperform” to “market perform.” Additionally, UBS Group set a target price of $455.00. Overall, one analyst has rated LPL Financial as a Strong Buy, ten analysts assigned a Buy rating, and five have given a Hold rating, leading to a consensus rating of “Moderate Buy” with an average price target of $398.38.

Insider Transactions and Company Performance

In related insider transactions, Greg Gates, a director at LPL Financial, sold 750 shares on October 6, 2023, at an average price of $314.42, totaling $235,815. Following this sale, Gates retained 16,870 shares valued at approximately $5.3 million. This transaction reflects a 4.26% decrease in his ownership stake.

Another director, Aneri Jambusaria, sold 80 shares on September 2, 2023, for a total of $28,900. After this sale, Jambusaria holds 5,582 shares valued at around $2.02 million, marking a 1.41% decrease in ownership. Over the past ninety days, insiders have sold a total of 3,830 shares, amounting to $1.33 million. Currently, insiders hold 1.30% of LPL Financial’s stock.

On the trading front, LPL Financial’s stock opened at $340.25 on the NASDAQ. The company’s 50-day moving average stands at $340.56, with the 200-day moving average at $354.23. LPL Financial has a market capitalization of $27.22 billion, a price-to-earnings ratio of 23.27, and a beta of 0.61. The stock has fluctuated between a 12-month low of $259.86 and a 12-month high of $403.58.

LPL Financial’s most recent quarterly earnings report, released on July 31, 2023, showed earnings per share (EPS) of $4.51, exceeding analysts’ expectations of $4.21 by $0.30. The firm reported a net margin of 7.91% and a return on equity of 39.80%, with quarterly revenue of $3.84 billion, surpassing expectations of $3.77 billion. This revenue reflects a year-over-year increase of 30.8%. Analysts predict that LPL Financial Holdings Inc. will post an EPS of $19.35 for the current year.

LPL Financial, along with its subsidiaries, provides a comprehensive platform of brokerage and investment advisory services to independent financial advisors across the United States. Its offerings include a range of financial products such as annuities, mutual funds, equities, and various investment plans.