How to buy LPL Financial (LPLA) shares
Learn how to easily invest in LPL Financial shares.
LPL Financial is a capital markets business based in the US. LPL Financial stocks (LPLA.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $133.03 – a decrease of 2.85% over the previous week. LPL Financial employs 5,457 staff and has a trailing 12-month revenue of around $7.2 billion.
How to buy shares in LPL Financial
- Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- Research the stock. Find the stock by name or ticker symbol – LPLA – and research it before deciding if it's a good investment for you.
- Check in on your investment. Optimize your portfolio by tracking your stock.
What's in this guide?
- Can I buy shares in LPL Financial?
- Has coronavirus impacted LPL Financial shares?
- LPL Financial shares summary
- Compare share dealing platforms
- Is LPL Financial stock a buy or sell?
- LPL Financial performance over time
- Are LPL Financial shares over-valued?
- LPL Financial's financials
- How volatile are LPL Financial shares?
- Does LPL Financial pay a dividend?
- Other common questions
LPL Financial stock price (NASDAQ:LPLA)Use our graph to track the performance of LPLA stocks over time.
LPL Financial shares at a glance
|Latest market close||$159.75|
|52-week range||$103.19 - $181.92|
|50-day moving average||$164.88|
|200-day moving average||$152.81|
|Wall St. target price||$212.60|
|Dividend yield||$1 (0.61%)|
|Earnings per share (TTM)||$5.68|
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Note: The dollar amounts in the table below are in Canadian dollars.
Is it a good time to buy LPL Financial stock?
LPL Financial price performance over time
|1 week (2022-01-19)||-2.85%|
|1 month (2021-12-23)||-1.77%|
|3 months (2021-10-26)||-8.72%|
|6 months (2021-07-26)||14.66%|
|1 year (2021-01-26)||43.12%|
|2 years (2020-01-24)||68.26%|
|3 years (2019-01-25)||127.47%|
|5 years (2017-01-26)||302.49%|
Is LPL Financial under- or over-valued?
Valuing LPL Financial stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of LPL Financial's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
LPL Financial's P/E ratio
LPL Financial's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 29x. In other words, LPL Financial shares trade at around 29x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
LPL Financial's PEG ratio
LPL Financial's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.8885. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into LPL Financial's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
LPL Financial's EBITDA
LPL Financial's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $975.7 million.
The EBITDA is a measure of a LPL Financial's overall financial performance and is widely used to measure a its profitability.
LPL Financial financials
|Revenue TTM||$7.2 billion|
|Operating margin TTM||10.55%|
|Gross profit TTM||$1.5 billion|
|Return on assets TTM||6.96%|
|Return on equity TTM||32.82%|
|Market capitalisation||$13.2 billion|
TTM: trailing 12 months
LPL Financial share dividends
Dividend payout ratio: 17.57% of net profits
Recently LPL Financial has paid out, on average, around 17.57% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.61% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), LPL Financial shareholders could enjoy a 0.61% return on their shares, in the form of dividend payments. In LPL Financial's case, that would currently equate to about $1 per share.
While LPL Financial's payout ratio might seem low, this can signify that LPL Financial is investing more in its future growth.
LPL Financial's most recent dividend payout was on 28 November 2021. The latest dividend was paid out to all shareholders who bought their shares by 8 November 2021 (the "ex-dividend date").
LPL Financial share price volatility
Over the last 12 months, LPL Financial's shares have ranged in value from as little as $103.1936 up to $181.92. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while LPL Financial's is 1.1095. This would suggest that LPL Financial's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
LPL Financial overview
LPL Financial Holdings Inc. , together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, retirement and education savings plans, fixed income, and insurance, as well as alternative investments, such as non-traded real estate investment trusts and business development companies. The company also provides advisory platforms that provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. In addition, it offers money market programs; and retirement solutions for commission-and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, the company provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services to trusts for estates and families, as well as insurance brokerage general agency services; and technology products, such as proposal generation, investment analytics, and portfolio modeling. The company was formerly known as LPL Investment Holdings Inc.
LPL Financial in the news
Clifford-Lewis Private Wealth Launches With Support of LPL Strategic Wealth Services
LPL Financial : Clifford-Lewis Private Wealth Launches at LPL
LPL Financial : New LPL Strategic Wealth Services Practice Launches
Frequently asked questions
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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