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LPL Financial (LPLA) Reports Y/Y Increase in January Metrics

Zacks Equity Research
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LPL Financial Holdings Inc.’s LPLA total brokerage and advisory assets of $660.8 billion at the end of January were up 5.2% sequentially and 3.8% year over year, reflecting improvement.

Of the total brokerage and advisory assets, brokerage assets were $362.3 billion while advisory assets totaled $298.5 billion.

Further, total net new assets were an inflow of $0.7 billion in January. This included $0.2 billion of outflows from a large hybrid firm, in line with LPL Financial’s expectations as discussed during its fourth 2018 earnings call.  Prior to these outflows, total net new assets were an inflow of $0.9 billion.

LPL Financial reported $32.2 billion of total client cash sweep balances, down 7.7% from the prior month and 12.2% from January 2018. Of the total, $22.9 billion was insured cash, $4.5 billion was deposit cash while the remaining $4.8 billion was money market cash balance.

With the gradual stabilization of equity markets, trading activities are anticipated to improve. However, dismal top-line growth poses a near-term concern.

Shares of LPL Financial have rallied 16.6% over the past six months.

LPL Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Investment Brokers

E*TRADE Financial ETFC has reported a decline in Daily Average Revenue Trades (DARTs) for January 2019. Per its monthly market activity, DARTs came in at 282,499, down 9% from the previous month and 10% year over year. Derivatives comprised 33% of DARTs in January.

Interactive Brokers Group, Inc. IBKR fell nearly 1% following the release of its Electronic Brokerage segment’s performance metrics for January. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported year-over-year decrease in DARTs.

Charles Schwab’s SCHW monthly activity for January 2019 reflects mixed results. Total client assets came in at $3.5 trillion at the end of the month, decreasing 1% from the year-ago month but increasing 6% from the prior month.

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LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
E*TRADE Financial Corporation (ETFC) : Free Stock Analysis Report
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
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