LPL Financial slip may be difficult to understand

This article is aimed at all current or potential LPL Financial investors. I will look into why albeit cyclical LPL Financial disturbance, the long term basic indicators of the company are still strong. In this post I will also go over different drivers effecting the stock products and services and how it may effect LPL Financial investors. What is LPL Financial Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of LPL Financial to move above current price in 30 days from now is about 98.0%. The LPL Financial Holdings probability density function shows the probability of LPL Financial Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, the stock has beta coefficient of 1.2123 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, LPL Financial will likely underperform. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. LPL Financial Holdings is significantly underperforming S&P 500. LPL Financial dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.5 per share.
Published over a year ago
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Reviewed by Rifka Kats

I believe the organisation is overvalued at 55.41 per share with modest projections ahead. The company secures Beta (Market Risk) of 1.2123 which conveys that as market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, LPL Financial will likely underperform. Even though it is essential to pay attention to LPL Financial Holdings price patterns, it is always good to be careful when utilizing equity historical price patterns. Macroaxis approach towards estimating future performance of any stock is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. LPL Financial exposes twenty-one different technical indicators which can help you to evaluate its performance. LPL Financial Holdings has expected return of -0.3018%. Please be advised to verify LPL Financial Holdings Maximum Drawdown, and the relationship between Information Ratio and Downside Variance to decide if LPL Financial Holdings past performance will be repeated at future time.
The performance of LPL Financial Holdings in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence LPL Financial's stock prices. When investing in LPL Financial, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, LPL Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as LPL Financial carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of LPL Financial earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. LPL Financial dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. LPL one year expected dividend income is about USD0.93 per share.
The current year's Dividends Paid is expected to grow to about (87.6 M). In addition to that, Dividend Yield is expected to decline to 0.01.
Last ReportedProjected for 2024
Dividends Paid-92.2 M-87.6 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.09  0.08 
Dividend Paid And Capex Coverage Ratio(1.65)(1.73)
Investing in dividend-paying stocks, such as LPL Financial Holdings is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in LPL Financial must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for LPL Financial. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is LPL Financial's Liquidity

LPL Financial financial leverage refers to using borrowed capital as a funding source to finance LPL Financial Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LPL Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to LPL Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of LPL Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between LPL Financial's total debt and its cash.

What do experts say about LPL?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

An Additional Perspective On LPL Financial Holdings

LPL Financial Holdings holds a total of 83.43 Million outstanding shares. Majority of LPL Financial outstanding shares are owned by institutional investers. These third-party entities are referred to non-private investors that are looking to shop for positions in LPL Financial Holdings to benefit from reduced commissions. Therefore, other institutions are subject to different set of regulations than regular investors in LPL Financial Holdings. Please pay attention to any change in the institutional holdings of LPL Financial as this could imply that something significant has changed or about to change at the company. Note that regardless of how profitable the company is, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns from it at some future point. The recent decline in stock price may encourage investors to take a closer look at the firm as it closed today at a share price of 70.83 on 866819.000 in trading volume. The company executives have failed to build on market volatilities in July. However, diversifying your overall positions with LPL Financial may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.7943. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. LPL Financial makes 5.41b revenue. LPL Financial is selling at 71.58. That is 1.30 percent up. Today highest was 72.33. LPL Financial Dividend Yield is somewhat stable at the moment. LPL Financial PPandE Turnover is decreasing over the last 5 years. Furthermore, LPL Financial Total Debt is somewhat stable at the moment.
 2013 2014 2015 2018 (projected)
LPL Financial Current Assets 1,871,617,000  1,842,750,000  2,281,002,000  2,052,901,800 
LPL Financial Total Assets 4,042,831,000  4,041,930,000  4,521,061,000  4,351,433,400 
On the whole, our primary 'Buy vs. Hold vs. Sell' recommendation on the company is Hold. We believe LPL Financial is overvalued with below average chance of bankruptcy for the next two years.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of LPL Financial Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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