Ratio Analysis: Unpacking LPL Financial Holdings Inc (LPLA)’s Price-to-Cash and Price-to-Free Cash Flow

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After finishing at $209.48 in the prior trading day, LPL Financial Holdings Inc (NASDAQ: LPLA) closed at $209.46, down -0.01%. In other words, the price has decreased by -$0.01 from its previous closing price. On the day, 0.6 million shares were traded. LPLA stock price reached its highest trading level at $209.935 during the session, while it also had its lowest trading level at $204.425.

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 5.29 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 104.24. In the meantime, Its Debt-to-Equity ratio is 1.94 whereas as Long-Term Debt/Eq ratio is at 1.86.

On April 09, 2024, Morgan Stanley Upgraded its rating to Overweight which previously was Equal-Weight and also upped its target price recommendation 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 15661324288 and an Enterprise Value of 18962200576. As of this moment, LPL’s Price-to-Earnings (P/E) ratio for their current fiscal year is 16.35, and their Forward P/E ratio for the next fiscal year is 10.72. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.32. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.43 while its Price-to-Book (P/B) ratio in mrq is 6.23. Its current Enterprise Value per Revenue stands at 1.735 whereas that against EBITDA is 9.328.

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 -7.86%, while the 200-Day Moving Average is calculated to be -15.61%.

Shares Statistics:

The stock has traded on average 1.03M shares per day over the past 3-months and 725330 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 97.02% stake in the company. Shares short for LPLA as of 1723680000 were 1333432 with a Short Ratio of 1.29, compared to 1721001600 on 722307. Therefore, it implies a Short% of Shares Outstanding of 1333432 and a Short% of Float of 1.7999999999999998.

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 0.0057284706The stock’s 5-year Average Dividend Yield is 0.74.

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