Assessing LPL Finl Hldgs: Insights From 12 Financial Analysts
Across the recent three months, 12 analysts have shared their insights on LPL Finl Hldgs (NASDAQ:LPLA), expressing a variety of opinions spanning from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 8 | 0 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 3 | 7 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $404.0, a high estimate of $435.00, and a low estimate of $379.00. Surpassing the previous average price target of $378.27, the current average has increased by 6.8%.
Deciphering Analyst Ratings: An In-Depth Analysis
An in-depth analysis of recent analyst actions unveils how financial experts perceive LPL Finl Hldgs. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Christopher Allen | Citigroup | Lowers | Buy | $400.00 | $415.00 |
| Michael Cyprys | Morgan Stanley | Raises | Overweight | $413.00 | $379.00 |
| Brennan Hawken | UBS | Raises | Buy | $420.00 | $390.00 |
| Michael Cho | JP Morgan | Raises | Overweight | $405.00 | $397.00 |
| Kyle Voigt | Keefe, Bruyette & Woods | Raises | Outperform | $405.00 | $390.00 |
| Devin Ryan | JMP Securities | Maintains | Market Outperform | $435.00 | $435.00 |
| Michael Brown | Wells Fargo | Raises | Overweight | $405.00 | $390.00 |
| Benjamin Budish | Barclays | Raises | Overweight | $414.00 | $389.00 |
| Benjamin Budish | Barclays | Raises | Overweight | $379.00 | $378.00 |
| Christopher Allen | Citigroup | Raises | Buy | $385.00 | $310.00 |
| Michael Cho | JP Morgan | Raises | Overweight | $397.00 | $288.00 |
| Brennan Hawken | UBS | Announces | Buy | $390.00 | - |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to LPL Finl Hldgs. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of LPL Finl Hldgs compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for LPL Finl Hldgs's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into LPL Finl Hldgs's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on LPL Finl Hldgs analyst ratings.
Delving into LPL Finl Hldgs's Background
LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of September 2024, the company had over 23,000 advisors on its platform managing $1.6 trillion of client assets. The company doesn't have material operations outside of the United States.
Key Indicators: LPL Finl Hldgs's Financial Health
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: LPL Finl Hldgs's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 32.85%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Net Margin: LPL Finl Hldgs's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 7.71%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 9.5%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): LPL Finl Hldgs's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.14% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: LPL Finl Hldgs's debt-to-equity ratio is below the industry average. With a ratio of 1.96, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Core of Analyst Ratings: What Every Investor Should Know
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.