LPL Financial Holdings Inc (NASDAQ: LPLA)’s stock price has gone decline by -1.18 in comparison to its previous close of 215.87, however, the company has experienced a -4.27% decrease in its stock price over the last five trading days. zacks.com reported 2024-09-06 that MCO acquires Praedicat to integrate its models and predictive analytics capabilities to expand the insurance product suite, enabling a better risk assessment.
Is It Worth Investing in LPL Financial Holdings Inc (NASDAQ: LPLA) Right Now?
LPL Financial Holdings Inc (NASDAQ: LPLA) has a higher price-to-earnings ratio of 16.65x compared to its average ratio. LPLA has 36-month beta value of 0.89. Analysts have mixed views on the stock, with 4 analysts rating it as a “buy,” 1 as “overweight,” 4 as “hold,” and 1 as “sell.”
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The public float for LPLA is 74.16M, and currently, short sellers hold a 1.80% ratio of that float. The average trading volume of LPLA on September 06, 2024 was 1.00M shares.
LPLA’s Market Performance
The stock of LPL Financial Holdings Inc (LPLA) has seen a -4.27% decrease in the past week, with a 9.34% rise in the past month, and a -23.86% fall in the past quarter. The volatility ratio for the week is 2.25%, and the volatility levels for the past 30 days are at 2.64% for LPLA. The simple moving average for the past 20 days is -1.53% for LPLA’s stock, with a -14.14% simple moving average for the past 200 days.
Analysts’ Opinion of LPLA
Many brokerage firms have already submitted their reports for LPLA stocks, with BofA Securities repeating the rating for LPLA by listing it as a “Buy.” The predicted price for LPLA in the upcoming period, according to BofA Securities is $268 based on the research report published on July 30, 2024 of the current year 2024.
Morgan Stanley, on the other hand, stated in their research note that they expect to see LPLA reach a price target of $315, previously predicting the price at $254. The rating they have provided for LPLA stocks is “Overweight” according to the report published on April 09th, 2024.
LPLA Trading at -7.78% from the 50-Day Moving Average
After a stumble in the market that brought LPLA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -26.41% of loss for the given period.
Volatility was left at 2.64%, however, over the last 30 days, the volatility rate increased by 2.25%, as shares surge +7.75% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -22.30% lower at present.
During the last 5 trading sessions, LPLA fell by -4.15%, which changed the moving average for the period of 200-days by -4.84% in comparison to the 20-day moving average, which settled at $217.42. In addition, LPL Financial Holdings Inc saw -6.28% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at LPLA starting from Arnold Dan H., who sale 5,677 shares at the price of $277.31 back on Jun 14 ’24. After this action, Arnold Dan H. now owns 142,608 shares of LPL Financial Holdings Inc, valued at $1,574,289 using the latest closing price.
Sethi Kabir, the Managing Director of LPL Financial Holdings Inc, sale 1,300 shares at $266.50 during a trade that took place back on Feb 26 ’24, which means that Sethi Kabir is holding 10,245 shares at $346,451 based on the most recent closing price.
Stock Fundamentals for LPLA
Current profitability levels for the company are sitting at:
- 0.18 for the present operating margin
- 0.33 for the gross margin
The net margin for LPL Financial Holdings Inc stands at 0.09. The total capital return value is set at 0.23. Equity return is now at value 42.02, with 9.33 for asset returns.
Based on LPL Financial Holdings Inc (LPLA), the company’s capital structure generated 0.65 points at debt to capital in total, while cash flow to debt ratio is standing at 0.12. The debt to equity ratio resting at 1.85. The interest coverage ratio of the stock is 8.45.
Currently, EBITDA for the company is 2.03 billion with net debt to EBITDA at 0.83. When we switch over and look at the enterprise to sales, we see a ratio of 1.63. The receivables turnover for the company is 3.46for trailing twelve months and the total asset turnover is 0.95.
Conclusion
To put it simply, LPL Financial Holdings Inc (LPLA) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
