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LPL Financial (LPLA) Records Improvement in April Assets

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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets of $1.06 trillion at the end of April 2021 grew 10.9% from the prior month and 48.1% year over year. Of the total assets, brokerage assets were $512.7 billion and advisory assets totaled $550.5 billion.

The increase was mainly driven by the impressive performance of the equity markets and strategic acquisition of Waddell & Reed’s wealth management business. Notably, compared with March 2021, the S&P 500 Index rallied 5.2% in April.

Total net new assets were $73.8 billion in the reported month. In March 2021, net new assets were $19.4 billion and in April 2020 it summed $3.4 billion.

Notably, on Apr 30 LPL Financial completed the acquisition of Waddell & Reed’s wealth management business. Total acquired net new assets for April were $67.1 billion. Of this, $32.6 billion was advisory assets and $34.5 billion was brokerage assets.

LPL Financial reported $47.7 billion of total client cash balance, down 1.2% from March 2021 but up 1.5% from April 2020. This included $1.1 billion of client cash balances from Waddell & Reed. Further, of the total balance, $35 billion was insured cash and $7.5 billion was deposit cash, while the remaining was money-market balance.

Shares of LPL Financial have surged 61.6% in the past six months, outperforming 46.6% growth recorded by the industry.

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.

Performance of Other Brokerage Firms

Interactive Brokers Group (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for April 2021. The segment reported a substantial surge in Daily Average Revenue Trades (DARTs) for the reported month. Total client DARTs were roughly 2.2 million, surging 27% from April 2020 and declining 27% from March 2021.

Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $19.3 trillion in April 2021. Average daily volumes were a record $896.8 billion, up 17.5% year over year.

Charles Schwab (SCHW - Free Report) released its activity report for the month of April 2021. Total client assets were $7.34 trillion, up 4% from March 2021 and 94% from April 2020. Client assets receiving ongoing advisory services were $3.6 trillion, up 3.7% from the prior month and 85.1% year over year.

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