William Blair Raises LPL Financial Earnings Forecast for 2026

LPL Financial Holdings Inc. has received an upward revision of its earnings estimates for fiscal year 2026 from William Blair. In a research note released on October 31, 2023, analyst J. Schmitt increased the forecast to $23.85 per share, up from a previous estimate of $22.80. This adjustment reflects growing confidence in the financial services provider, particularly as the consensus estimate for the current full-year earnings stands at $19.35 per share.

Numerous analysts have recently shared positive outlooks on LPL Financial’s stock performance. On July 11, Wells Fargo & Company raised its price target from $402.00 to $420.00 while maintaining an “overweight” rating. Following this, on August 4, Keefe, Bruyette & Woods increased their target from $425.00 to $435.00, also assigning an “outperform” rating. In a research note dated October 3, BMO Capital Markets initiated coverage of LPL Financial, setting a price target of $365.00 and an “outperform” rating. Additionally, UBS Group set a price objective of $455.00 on October 9, while Citigroup reaffirmed its “outperform” rating shortly thereafter.

Analyst consensus indicates strong market confidence in LPL Financial, with one analyst rating the stock as a Strong Buy, ten offering a Buy rating, and six suggesting a Hold. According to data from MarketBeat, LPL Financial currently boasts a consensus rating of “Moderate Buy” and an average target price of $429.00.

Recent Stock Performance and Financial Results

On November 1, shares of LPL Financial opened at $374.49. The company exhibits solid financial ratios, including a debt-to-equity ratio of 1.41, a quick ratio of 3.22, and a current ratio of 3.22. With a market capitalization of $29.96 billion, LPL Financial’s price-to-earnings ratio stands at 34.48, and it shows a price-to-earnings-growth ratio of 0.87. Over the past year, the stock has ranged from a low of $262.83 to a high of $403.58, with a 50-day moving average price of $340.29 and a 200-day moving average price of $357.62.

In its latest earnings report released on October 30, LPL Financial reported earnings per share of $5.20 for the quarter, surpassing the consensus estimate of $4.49 by $0.71. The firm achieved a net margin of 5.35% and a return on equity of 40.11%. Revenue for the quarter reached $4.55 billion, significantly exceeding analysts’ expectations of $4.08 billion, and marking a 46.4% increase compared to the same period last year.

Dividend and Insider Activity

LPL Financial recently announced a quarterly dividend of $0.30 per share, scheduled for payment on December 1, 2023. Shareholders of record as of November 13, 2023, will be eligible for this dividend, which translates to an annualized dividend of $1.20 and a yield of 0.3%. The company’s dividend payout ratio currently stands at 11.05%.

In related news, insider trading activity has occurred recently. Director Aneri Jambusaria sold 80 shares of LPL Financial on September 2, 2023, at an average price of $361.25, totaling $28,900.00. Following this sale, Jambusaria retained 5,582 shares valued at approximately $2,016,497.50. Additionally, Director Greg Gates sold 1,500 shares on September 5, 2023, for $507,315.00. This transaction reduced Gates’ holdings to 17,620 shares valued at around $5,959,260.20.

Over the past three months, insiders have sold a total of 2,330 shares worth $772,030. Currently, corporate insiders own 0.70% of LPL Financial’s stock.

Hedge funds and institutional investors have also made adjustments to their holdings in LPL Financial. DAVENPORT & Co LLC increased its stake by 8.9% in the first quarter, now owning 1,918 shares. JPMorgan Chase & Co. raised its holdings by 8.8%, acquiring an additional 105,665 shares. Other notable investors include Amalgamated Bank, which increased its position by 3.8%, and Nisa Investment Advisors LLC, which boosted its stake by 198.3%.

Overall, 95.66% of LPL Financial’s stock is owned by hedge funds and institutional investors, reflecting strong institutional interest in the company.

LPL Financial Holdings Inc. provides a comprehensive platform of brokerage and investment advisory services to independent financial advisors in the United States. Its diverse offerings include various investment products such as annuities, mutual funds, equities, fixed income, and retirement plans.