LPL Financial (LPLA) Comes Up With Mixed Results For October

LPL Financial Holdings Inc. (NASDAQ:LPLA) registered total brokerage and advisory assets of $566.4 billion in October 2017, reflecting an increase of 1.1% from the previous month. Of these, brokerage assets were $311.6 billion, while advisory assets were $254.8 billion.

However, LPL Financial’s total net new assets decreased to $0.6 billion in October from $0.9 billion in the prior month.

The company reported $27.7 billion of total client cash sweep balances for October, declining 2.1% from September. Of the total cash balance, $21.5 billion was insured cash, $3.9 billion was deposit cash and the remaining $2.3 billion was money market balance.

Given that global equity markets are gradually stabilizing, trading activities are likely to improve. Also, LPL Financial has been extending its offerings to all affiliated advisors, which is expected to help the company grab greater market share.

LPL Financial’s price performance seems encouraging. Shares of the company have rallied 40% so far this year, outperforming 7% growth for the industry it belongs to. Given the strong fundamentals, we expect this upbeat price performance to continue in the near term as well.



Nonetheless, the company’s Zacks Consensus Estimate for current-year earnings has remained stable over the last seven days. As a result, LPL Financial currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Investment Brokers

E*TRADE Financial Corporation (NASDAQ:ETFC) reported an increase in Daily Average Revenue Trades (DARTs) for October 2017. According to its monthly market activity, the company’s DARTs came in at 215,689, increasing 7% from the prior month and 28% year over year. Notably, derivatives comprised 31% of DARTs during October.

TD Ameritrade Holding Corporation (NASDAQ:AMTD) reported average client trades per day of 680,000 in its activity report for October 2017. The reported figure was up 19% from the prior-month tally and 55% from the year-ago period.

Interactive Brokers Group, Inc.’s (NASDAQ:IBKR) Electronic Brokerage segment reported a year-over-year increase in DARTs for October 2017. Total client DARTs came in at 698,000, up 16% from both October 2016 and September 2017. Also, total customer accounts jumped 24% year over year and 2% from the prior month to 465,000.

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E*TRADE Financial Corporation (ETFC): Free Stock Analysis Report

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LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report

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