LPL Financial (LPLA)

LPL Financial is a leader in the retail financial advice market and the nation's largest independent broker/dealer*. The Company serves independent financial advisors and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.

Company profile

Dan Arnold
Fiscal year end
Former names
LPL Investment Holdings Inc.
LPL Holdings, Inc. • PTC Holdings, Inc. • The Private Trust Company • LPL Financial LLC • LPL Insurance Associates, Inc. • Fortigent Holdings Company, Inc. • Fortigent, LLC • LPL Employee Services, LLC • Allen & Company • Blaze Portfolio Systems LLC ...
IRS number

LPLA stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
Low target
High target
4 Aug 22
Morgan Stanley
3 Aug 22

Investment data

Data from SEC filings
Securities sold
Number of investors


4 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.65B 1.65B 1.65B 1.65B 1.65B 1.65B
Cash burn (monthly) 31.11M 6.09M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 95.19M 18.63M n/a n/a n/a n/a
Cash remaining 1.56B 1.64B n/a n/a n/a n/a
Runway (months of cash) 50.1 268.5 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
7 Sep 22 Steinmeier Richard Common Stock Payment of exercise Dispose F No No 223.79 3,737 836.3K 20,341
31 Aug 22 Bernard Edward C Common Stock Grant Acquire A No No 0 5 0 12,224
31 Aug 22 Eberhart Paulett Common Stock Grant Acquire A No No 0 6 0 22,044
31 Aug 22 Glavin William Francis Jr Common Stock Grant Acquire A No No 0 16 0 19,834
31 Aug 22 Mnookin Allison Common Stock Grant Acquire A No No 0 4 0 8,905
13F holders Current Prev Q Change
Total holders 515 474 +8.6%
Opened positions 102 89 +14.6%
Closed positions 61 43 +41.9%
Increased positions 182 175 +4.0%
Reduced positions 171 153 +11.8%
13F shares Current Prev Q Change
Total value 14.79B 14.14B +4.5%
Total shares 80.15M 76.92M +4.2%
Total puts 505K 170.3K +196.5%
Total calls 112K 345K -67.5%
Total put/call ratio 4.5 0.5 +813.4%
Largest owners Shares Value Change
JHG Janus Henderson 7.16M $1.32B -8.0%
Vanguard 7.02M $1.29B +0.1%
BLK Blackrock 4.5M $829.78M +26.7%
Wellington Management 3.12M $574.75M -12.8%
Kayne Anderson Rudnick Investment Management 2.7M $498.06M +0.5%
Lone Pine Capital 2.29M $422.3M NEW
FMR 2.29M $421.59M +3.0%
IVZ Invesco 2.13M $392.8M -10.0%
Samlyn Capital 2.08M $384.03M -6.1%
Clarkston Capital Partners 2.03M $374.83M -3.4%
Largest transactions Shares Bought/sold Change
Lone Pine Capital 2.29M +2.29M NEW
WCM Investment Management 1.53M +1.53M NEW
Capital Research Global Investors 1.99M +1.35M +209.8%
BLK Blackrock 4.5M +948.63K +26.7%
Jackson Square Partners 677.98K +677.98K NEW
JHG Janus Henderson 7.16M -618.04K -8.0%
Wellington Management 3.12M -458.63K -12.8%
BK Bank Of New York Mellon 1.15M +412.19K +56.0%
STT State Street 1.61M +362.95K +29.1%
LMR Partners 37.84K -336.21K -89.9%

Financial report summary

  • We depend on our ability to attract and retain experienced and productive advisors, and we are subject to competition in all aspects of our business.
  • Our business is subject to risks related to litigation, arbitration claims and regulatory actions.
  • There are risks inherent in the independent broker-dealer business model.
  • We rely on third-party service providers, including off-shore providers, to perform technology, processing and support functions, and our operations are dependent on financial intermediaries that we do not control.
  • We face competition in attracting and retaining key talent.
  • The securities settlement process exposes us to risks related to adverse movements in price.
  • Our insurance coverage may be inadequate or expensive.
  • A loss of our marketing relationships with manufacturers of financial products could harm our relationship with our advisors and, in turn, their clients.
  • Regulatory developments could adversely affect our business by increasing our costs or making our business less profitable.
  • Failure to comply with ERISA regulations and certain tax-qualified plan laws and regulations could result in penalties against us.
  • Our information technology systems may be vulnerable to security risks.
  • A cyber-attack or other security breach of our technology systems or those of our advisors or third-party vendors could subject us to significant liability and harm our reputation.
  • Failure to comply with the complex privacy and data protection laws and regulations to which we are subject could result in adverse action from regulators.
  • Our future ability to pay regular dividends to holders of our common stock or repurchase shares are subject to the discretion of our board of directors and will be limited by our ability to generate sufficient earnings and cash flows.
Management Discussion
  • A discussion of changes in our results of operations during the year ended December 31, 2020 compared to the year ended December 31, 2019 has been omitted from this Annual Report on Form 10-K, but may be found in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on February 23, 2021.
  • Advisory revenue represents fees charged to advisors’ clients’ advisory accounts on our corporate RIA advisory platform and is based on a percentage of the market value of the eligible assets in the clients’ advisory accounts. We provide ongoing investment advice and act as a custodian, providing brokerage and execution services on transactions, and perform administrative services for these accounts. Advisory fees are primarily billed to clients in advance, on a quarterly basis, and are recognized as revenue ratably during the quarter. The performance obligation for advisory fees is considered a series of distinct services that are substantially the same and are satisfied daily. As the value of the eligible assets in an advisory account is susceptible to changes due to customer activity, this revenue includes variable consideration and is constrained until the date that the fees are determinable. The majority of our client accounts are on a calendar quarter and are billed using values as of the last business day of the preceding quarter. The value of the eligible assets in an advisory account on the billing date is adjusted for estimates of contributions and withdrawals to determine the amount billed, and accordingly, the revenue earned in the following three-month period. Advisory revenue collected on our corporate advisory platform is proposed by the advisor and agreed to by the client and averaged 1% of the underlying assets for the year ended December 31, 2021.
  • We also support Hybrid RIAs through our hybrid advisory platform, which allows advisors to engage us for technology, clearing and custody services, as well as access to the capabilities of our investment platforms. The assets held under a Hybrid RIA’s investment advisory accounts custodied with LPL Financial are included in total advisory assets and net new advisory assets. The advisory revenue generated by a Hybrid RIA is not included in our advisory revenue. We charge separate fees to Hybrid RIAs for technology, clearing, administrative, oversight and custody services, which may vary and are included in our service and fee revenue in our consolidated statements of income.

Content analysis

H.S. freshman Avg
New words: add, alike, billable, constant, degree, depository, drag, geopolitical, hiring, increasingly, judgment, monthly, replaced, travel, unchanged
Removed: DOL, fourth, lower, productivity, recruiting