Morgan Stanley Forecasts Strong Price Appreciation for LPL Financial (NASDAQ:LPLA) Stock

LPL Financial (NASDAQ:LPLA) had its price objective increased by equities research analysts at Morgan Stanley from $330.00 to $450.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has an “overweight” rating on the financial services provider’s stock. Morgan Stanley’s target price would suggest a potential upside of 19.24% from the company’s previous close.

Several other brokerages have also recently issued reports on LPLA. JMP Securities boosted their price target on shares of LPL Financial from $420.00 to $440.00 and gave the company a “market outperform” rating in a research report on Friday, May 9th. JPMorgan Chase & Co. boosted their price target on shares of LPL Financial from $397.00 to $405.00 and gave the company an “overweight” rating in a research report on Friday, January 31st. Wells Fargo & Company reduced their price target on shares of LPL Financial from $405.00 to $342.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 8th. Wall Street Zen cut shares of LPL Financial from a “hold” rating to a “sell” rating in a research report on Wednesday. Finally, Barclays boosted their price target on shares of LPL Financial from $365.00 to $400.00 and gave the company an “overweight” rating in a research report on Monday, May 12th. One equities research analyst has rated the stock with a sell rating and twelve have given a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $377.50.

LPL Financial Price Performance

LPLA stock opened at $377.40 on Wednesday. The firm’s 50-day moving average price is $330.99 and its two-hundred day moving average price is $335.95. LPL Financial has a 12-month low of $187.19 and a 12-month high of $390.23. The stock has a market capitalization of $30.18 billion, a price-to-earnings ratio of 26.88, a PEG ratio of 0.94 and a beta of 0.65. The company has a current ratio of 2.16, a quick ratio of 2.16 and a debt-to-equity ratio of 1.60.

LPL Financial (NASDAQ:LPLA) last released its quarterly earnings data on Thursday, May 8th. The financial services provider reported $5.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.54 by $0.61. LPL Financial had a net margin of 8.55% and a return on equity of 49.41%. The firm had revenue of $3.67 billion for the quarter, compared to analysts’ expectations of $3.63 billion. During the same quarter in the previous year, the company earned $3.83 earnings per share. The company’s revenue for the quarter was up 4.5% compared to the same quarter last year. As a group, equities analysts predict that LPL Financial will post 19.35 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Matthew J. Audette sold 4,588 shares of the company’s stock in a transaction that occurred on Wednesday, February 26th. The shares were sold at an average price of $360.07, for a total value of $1,652,001.16. Following the transaction, the chief financial officer now owns 16,538 shares in the company, valued at approximately $5,954,837.66. This represents a 21.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Marc Eliot Cohen sold 1,100 shares of the company’s stock in a transaction that occurred on Wednesday, February 26th. The stock was sold at an average price of $365.85, for a total transaction of $402,435.00. Following the completion of the transaction, the director now owns 4,075 shares in the company, valued at approximately $1,490,838.75. This represents a 21.26% decrease in their position. The disclosure for this sale can be found here. 0.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Summit Securities Group LLC bought a new position in shares of LPL Financial in the first quarter worth approximately $26,000. Millstone Evans Group LLC lifted its stake in shares of LPL Financial by 123.1% in the first quarter. Millstone Evans Group LLC now owns 87 shares of the financial services provider’s stock worth $28,000 after buying an additional 48 shares in the last quarter. Graney & King LLC bought a new position in shares of LPL Financial in the fourth quarter worth approximately $30,000. Private Trust Co. NA lifted its stake in shares of LPL Financial by 234.5% in the first quarter. Private Trust Co. NA now owns 97 shares of the financial services provider’s stock worth $32,000 after buying an additional 68 shares in the last quarter. Finally, MassMutual Private Wealth & Trust FSB lifted its stake in shares of LPL Financial by 63.9% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 100 shares of the financial services provider’s stock worth $33,000 after buying an additional 39 shares in the last quarter. Institutional investors 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.