News Summary
In a significant move, the Teacher Retirement System of Texas has boosted its stake in LPL Financial by 37.6%. This investment reflects growing confidence in LPL’s future, with analysts divided but generally optimistic. Several other institutional investors have also increased their holdings. The company reported strong quarterly earnings, surpassing estimates and projecting further growth for the year. LPL Financial is becoming a noteworthy player to watch in the financial advisory landscape.
AUSTIN, Texas – The Teacher Retirement System of Texas has significantly enhanced its investment in LPL Financial Holdings Inc. (NASDAQ:LPLA) by 37.6% during the first quarter of 2023, according to the latest disclosure in a 13F filing with the Securities and Exchange Commission. As a result of this increase, the institutional investor now holds 30,778 shares of LPL Financial, having acquired an additional 8,408 shares during the reporting period. The value of these investments stands at approximately $10,069,000 at the end of the quarter.
In addition to the Teacher Retirement System of Texas, other institutional investors and hedge funds have also recently made adjustments to their stakes in LPL Financial. For instance, Graney & King LLC purchased a new stake valued at $30,000 in the fourth quarter, while Private Trust Co. NA increased its holdings by 234.5% to own 97 shares worth $32,000. MassMutual Private Wealth & Trust FSB also raised its stake by 63.9%, now holding 100 shares valued at $33,000. City Holding Co. and Fourth Dimension Wealth LLC made new stakes of $34,000 and $40,000 respectively.
The overall picture shows that institutional investors now hold approximately 95.66% of LPL Financial’s stock, demonstrating robust confidence in the firm’s performance.
Analyst Ratings and Valuations
Market analysts have varied perspectives on LPL Financial. Barclays recently raised its price target from $400 to $450, labeling the stock as “overweight.” Similarly, JMP Securities adjusted its price target from $420 to $440 while maintaining a “market outperform” rating. In a more positive move, Redburn Atlantic upgraded the stock from “neutral” to “buy,” increasing the price target from $420 to $460.
On the other hand, Wells Fargo downgraded its price target from $405 to $342 while rating the stock as “overweight.” Additionally, Wall Street Zen rated the stock as “hold,” which contrasts with two analysts giving a ‘hold’ rating and twelve supporting a ‘buy’ rating. The consensus rating for LPL Financial is currently categorized as a “Moderate Buy” with an average price target of $387.69, according to MarketBeat.com.
LPL Financial’s Financial Performance
LPL Financial’s stock recently opened at $384.27, with a market capitalization of about $30.73 billion. The company reported earnings of $5.15 EPS for the quarter, surpassing analysts’ expectations of $4.54 by $0.61. Furthermore, revenue came in at $3.67 billion, exceeding the consensus estimate of $3.63 billion and reflecting a year-over-year growth of 4.5%.
LPL Financial is forecasted to achieve an EPS of 19.35 for the current year. The company recently declared a quarterly dividend of $0.30, which was paid on June 12, leading to an annualized dividend of $1.20 — yielding 0.31% with a payout ratio of 8.30%.
Market Trends and Stock Metrics
Investors should also note key statistics about LPL Financial’s stock performance. The company has a Price-to-Earnings (P/E) ratio of 26.59, a price-to-earnings-growth ratio of 1.05, and a beta of 0.64. Its debt-to-equity ratio is 1.82, while both its quick and current ratios are noted to be 2.31.
Recent trading has seen LPL Financial’s stock reach a 52-week low of $187.19 and a high of $390.23 — indicators that reflect its volatile performance in the market.
Overall, the Teacher Retirement System of Texas’ decision to increase its stake in LPL Financial underscores the firm’s growing value in the financial advisory sector, as indicated by consistent investments and positive financial metrics.
Deeper Dive: News & Info About This Topic
- MarketBeat: Teacher Retirement System of Texas Buys LPL Financial Holdings
- LPL Financial: Welcomes Women-Led West Texas Investments
- Nasdaq: LPL Financial Welcomes Jason Wyatt
- Investment News: LPL Welcomes Women-Led B. Riley Team
- Wikipedia: LPL Financial
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