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Morningstar

LPL Financial Holdings Inc LPLA Stock Quote

Morningstar Rating
| Rating as of

NASDAQ: LPLA

Last close prices updated as of Jun 02, 2023, 4:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 202.77
  • Sector Financial Services
  • Industry Capital Markets
  • Investment Style Mid Growth
  • Day Range 199.04  –  203.94
  • Year Range 169.68  –  271.56
  • Market Cap 15.7488 Bil
  • Volume / Avg 931,550.0 /  1.0 Mil
  • Price / Sales 4.65
  • Price / Book 6.93
  • Forward Div Yield 0.61%
  • Trailing Div Yield 0.67%

Morningstar‘s Stock Analysis LPLA

Valuation
Currency in —
Is it the right time to buy or sell?
Find out with Morningstar Investor
Is it the right time to buy or sell?
Find out with Morningstar Investor

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

LPL Financial Earnings: Decreasing Fair Value to $273, but Shares Still Undervalued

Michael Wong Sector Director

Analyst Note

| Michael Wong |

LPL Financial reported fairly good revenue and profit growth, but similar to other wealth-management firms, client cash-related revenue that had been a bright spot the previous several quarters is showing signs of slowing down. The company reported net income to common shareholders of $339 million, or $4.24 per diluted share, on $1.02 billion of gross profit. Gross profit increased 52% from the previous year, mainly from client cash-related revenue increasing to $439 million from $85 million the previous year. However, client cash-related revenue was flat sequentially, as higher revenue yields on client cash was offset by about a $10 billion decline in client cash sweep balances. The decline in cash sweep balances is due to clients sorting their cash into higher interest-yielding products and using their cash to invest and isn’t a sign of clients pulling their assets from the company. In fact, LPL Financial had over $20 billion of net new client assets in the quarter.

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Key Statistics LPLA

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Company Profile LPLA

Business Description

LPL Financial Holdings is an independent broker-dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of 2022, the company had nearly 20,000 advisors on its platform managing over $1 trillion of client assets.

Contact
4707 Executive Drive
San Diego, CA, 92121
Sector Financial Services
Industry Capital Markets
Employees 3,397

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LPL Financial Earnings: Decreasing Fair Value to $273, but Shares Still Undervalued

Michael Wong
Stock Analyst Update

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Stock Analyst Update

LPL Financial’s FVE Increased to $294

We believe gross profit in 2023 could increase over 30%, as the company benefits from continued high interest rates.
Michael Wong
Stock Strategist

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Market Update

Which Sectors Saw the Biggest Valuation Boosts?

Three sectors saw the most fair value increases after the first-quarter earnings season.
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Related News LPLA

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Competitors & Peers LPLA

More on LPLA’s Competitors & Peers

Morningstar analysts hand-select direct competitors or comparable companies to provide context on the strength and durability of LPLA’s competitive advantage.

LPL Financial Holdings Inc

XNAS: LPLA

Ameriprise Financial Inc

XNYS: AMP

Raymond James Financial Inc

XNYS: RJF

Stifel Financial Corp

XNYS: SF
Price
202.77313.2094.3558.62
Currency
USDUSDUSDUSD
Change
+$6.98 (3.57%) +$9.47 (3.12%) +$3.21 (3.52%) +$2.60 (4.64%)
Market Cap
15.75 Bil32.63 Bil19.99 Bil6.22 Bil
Industry
Capital Markets Asset Management Capital Markets Capital Markets
Sector
Financial Services
Financial Services
Financial Services
Financial Services

* Trading data in this section is delayed by at least 15 minutes.

FAQs for LPL Financial Holdings Inc Stock

Yes. LPLA has a forward dividend yield of 0.61%. See LPLA’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

LPLA’s market cap is 15.75 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

LPLA’s stock style is Mid Growth.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

LPLA’s price/sales is 4.65.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

LPLA’s price/forward earnings is 15.06.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

LPLA’s price/book is 6.99.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See LPLA’s valuation ratios compared to the Market Index.

LPLA’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare LPLA’s historical performance against its industry peers and the overall market.