LPL Financial (LPLA) January Metrics Down On Adverse Markets
LPL Financial Holdings Inc.’s LPLA total brokerage and advisory assets were $1.16 trillion at the end of January 2022, having declined 4% from the prior month. Of the total assets, brokerage assets were $538.2 billion and advisory assets totaled $619.6 billion.
The decrease in LPLA’s assets balance was mainly due to the unfavorable equity markets’ returns and decline in net new assets balance.
LPL Financial’s total net new assets were $6.1 billion in the reported month. Net new assets were $12.1 billion and $3.6 billion in December 2021 and January 2021, respectively.
Also, LPL Financial reported $58.4 billion of total client cash balance, up 1.9% from December 2021 and 19.7% from January 2021. Of the total balance, $29.6 billion was insured cash and $9.7 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will continue aiding advisory revenues. Also, it is expanding through strategic buyouts on the back of a solid balance sheet position.
Shares of LPL Financial have surged 31% in the past six months, outperforming 1.9% growth recorded by the industry.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Competitive Landscape
A couple of other brokerage firms that have come out with monthly data are Interactive Brokers Group IBKR and Tradeweb Markets Inc. TW.
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for January 2022. The segment (that deals with the clearance and settlement of trades for individual and institutional clients globally) reported a surge in client Daily Average Revenue Trades (DARTs) on a sequential basis. However, the metric declined year over year.
IBKR’s total client DARTs were 2,621,000 in January 2022, which grew 18% from December 2021 but declined 20% from January 2021.
Tradeweb Markets reported total trading volume of $22.3 trillion in January 2022. Average daily volumes (“ADV”) were $1.12 trillion, up 7.6% year over year.
In the reported month, fully electronic share for U.S High Yield TRACE set a Tradeweb record of 8.2%. Also, TW set a new ADV record in European government bond trading.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
Tradeweb Markets Inc. (TW) : Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
