Metric Deep Dive: Understanding LPL Financial Holdings Inc (LPLA) Through its Ratios

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After finishing at $206.98 in the prior trading day, LPL Financial Holdings Inc (NASDAQ: LPLA) closed at $205.71, down -0.61%. In other words, the price has decreased by -$0.61 from its previous closing price. On the day, 0.52 million shares were traded. LPLA stock price reached its highest trading level at $210.3 during the session, while it also had its lowest trading level at $205.5.

Ratios:

Our goal is to gain a better understanding of LPLA by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 5.19 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 102.38. In the meantime, Its Debt-to-Equity ratio is 1.94 whereas as Long-Term Debt/Eq ratio is at 1.86.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Wells Fargo on September 12, 2024, initiated with a Equal Weight rating and assigned the stock a target price of $235.

On July 30, 2024, BofA Securities Upgraded its rating to Buy which previously was Neutral but kept the price unchanged to $268.

Morgan Stanley Upgraded its Equal-Weight to Overweight on April 09, 2024, whereas the target price for the stock was revised from $254 to $315.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Jun 14 ’24 when Arnold Dan H. sold 5,677 shares for $277.31 per share. The transaction valued at 1,574,289 led to the insider holds 142,608 shares of the business.

Sethi Kabir sold 1,300 shares of LPLA for $346,451 on Feb 26 ’24. The Managing Director now owns 10,245 shares after completing the transaction at $266.50 per share. On Feb 26 ’24, another insider, Gates Greg, who serves as the Managing Director of the company, sold 11,401 shares for $266.27 each. As a result, the insider received 3,035,697 and left with 19,080 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, LPLA now has a Market Capitalization of 15379475456 and an Enterprise Value of 18681864192. As of this moment, LPL’s Price-to-Earnings (P/E) ratio for their current fiscal year is 16.05, and their Forward P/E ratio for the next fiscal year is 10.53. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.29. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.41 while its Price-to-Book (P/B) ratio in mrq is 6.11. Its current Enterprise Value per Revenue stands at 1.709 whereas that against EBITDA is 9.19.

Stock Price History:

Over the past 52 weeks, LPLA has reached a high of $289.88, while it has fallen to a 52-week low of $187.19. The 50-Day Moving Average of the stock is -8.32%, while the 200-Day Moving Average is calculated to be -17.06%.

Shares Statistics:

The stock has traded on average 1.04M shares per day over the past 3-months and 710510 shares per day over the last 10 days, according to various share statistics. A total of 74.66M shares are outstanding, with a floating share count of 74.16M. Insiders hold about 0.81% of the company’s shares, while institutions hold 97.01% stake in the company. Shares short for LPLA as of 1724976000 were 1375960 with a Short Ratio of 1.33, compared to 1722384000 on 852535. Therefore, it implies a Short% of Shares Outstanding of 1375960 and a Short% of Float of 1.8599999999999999.

Dividends & Splits

In the trailing 12 months, LPLA’s forward annual dividend rate was 1.2, compared to 1.20 this year. Against a Trailing Annual Dividend Yield of 0.005797662The stock’s 5-year Average Dividend Yield is 0.74.

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