William Blair Raises Earnings Forecast for LPL Financial in 2026

William Blair has revised its earnings estimates for LPL Financial Holdings Inc. (NASDAQ: LPLA), projecting an increase for the fiscal year 2026. In a research note dated October 31, 2023, analyst J. Schmitt raised the expected earnings per share from $22.80 to $23.85. This adjustment comes as the consensus estimate for LPL Financial’s current full-year earnings stands at $19.35 per share.

Several financial institutions have also recently evaluated LPL Financial’s stock. On July 11, Wells Fargo & Company increased its price target from $402.00 to $420.00, maintaining an “overweight” rating. Keefe, Bruyette & Woods followed suit on August 4 by raising their target from $425.00 to $435.00 while assigning an “outperform” rating. Other notable reviews include coverage initiated by BMO Capital Markets on October 3, which set a target of $365.00, and UBS Group establishing a price objective of $455.00 on October 9. Citigroup reaffirmed an “outperform” rating on the stock in a recent report.

As of the latest analysis, one analyst has designated the stock with a Strong Buy rating, while ten have issued Buy ratings, and six have given it a Hold rating. According to data compiled by MarketBeat, LPL Financial currently holds a consensus rating of “Moderate Buy” and an average target price of $429.00.

LPL Financial Stock Performance and Recent Earnings Report

Shares of LPL Financial opened at $374.49 on November 1, 2023. The company has a market capitalization of $29.96 billion and a price-to-earnings ratio of 34.48. LPL Financial reported strong financial performance in its latest earnings release on October 30, revealing earnings per share of $5.20, surpassing the consensus estimate of $4.49 by $0.71. The firm achieved quarterly revenue of $4.55 billion, significantly exceeding analyst expectations of $4.08 billion. This marks a year-over-year revenue increase of 46.4%, compared to earnings per share of $4.16 during the same quarter last year.

The financial services provider also announced a quarterly dividend of $0.30 per share, set to be paid on December 1, 2023. Shareholders of record on November 13 will receive this dividend. The ex-dividend date is the same day, and this payout represents an annualized dividend of $1.20 with a yield of 0.3%. Currently, LPL Financial’s dividend payout ratio stands at 11.05%.

Insider Transactions and Institutional Investments

In insider trading news, Director Aneri Jambusaria sold 80 shares of LPL Financial stock on September 2 at an average price of $361.25, totaling $28,900.00. Following this transaction, Jambusaria retains ownership of 5,582 shares, valued at approximately $2,016,497.50. Similarly, Director Greg Gates sold 1,500 shares on September 5 at an average price of $338.21, amounting to $507,315.00. Gates now holds 17,620 shares, worth 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 the company’s stock.

Institutional investors have also been active in modifying their holdings of LPL Financial. DAVENPORT & Co LLC increased its stake by 8.9% in the first quarter, now owning 1,918 shares valued at $627,000. JPMorgan Chase & Co. expanded its holdings by 8.8%, possessing 1,304,780 shares worth approximately $426,846,000. Other institutions like Amalgamated Bank and Nisa Investment Advisors LLC have also raised their positions in LPL Financial during the same period. Notably, 95.66% of the stock is held by hedge funds and institutional investors.

LPL Financial Holdings Inc., along with its subsidiaries, provides a comprehensive platform of brokerage and investment advisory services to independent financial advisors in the United States. Its offerings range from mutual funds and fixed-income products to retirement plans and insurance. The ongoing developments surrounding LPL Financial reflect a positive outlook and growing confidence among analysts and investors alike.