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LPL Financial's (LPLA) April Metrics Rise on Upbeat Markets
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LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.19 trillion at the end of April 2023, increasing 1.1% from the prior month and 8.4% year over year. The rise in LPLA’s assets balance was mainly due to solid market performance.
Of LPLA’s total assets, brokerage assets were $559.5 billion and advisory assets amounted to $628.2 billion. Brokerage assets were up almost 1% from March 2023 and 9.8% year over year. Advisory assets grew 1.2% from the prior month and 7.1% from April 2022.
LPL Financial’s total net new assets (NNAs) were $4.4 billion in the reported month. NNAs were $10.6 billion and $1.9 billion in March 2023 and April 2022, respectively.
The company reported $50.9 billion of total client cash balance, down 6.8% from March 2023 and 17.5% from April 2022. Of the total balance, $37 billion was insured cash and $9.5 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will support advisory revenues. Also, it is expanding through strategic buyouts on the back of a solid balance sheet position. However, the challenging operating backdrop is a major near-term headwind.
The stock has lost 12.2% over the past six months compared with an 18.1% decline witnessed by the industry.
A couple of other brokerage firms that have already come out with monthly data for April are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for April 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and a year-over-year basis.
IBKR's total client DARTs for the month were 1,765,000, which declined 14% from the March 2023 level and 20% year over year.
Schwab released its monthly activity report for April 2023. Core net new assets were negative $2.3 billion in the month. It had reported core net new assets of $53.9 billion in March 2023 and negative net new assets of $9.2 million.
SCHW’s total client assets were $7.63 trillion, up 1% from March 2023 and 5% from April 2022. Likewise, client assets receiving ongoing advisory services were $3.92 trillion, rising marginally from the prior month and 6% year over year.
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LPL Financial's (LPLA) April Metrics Rise on Upbeat Markets
LPL Financial's (LPLA - Free Report) total brokerage and advisory assets were $1.19 trillion at the end of April 2023, increasing 1.1% from the prior month and 8.4% year over year. The rise in LPLA’s assets balance was mainly due to solid market performance.
Of LPLA’s total assets, brokerage assets were $559.5 billion and advisory assets amounted to $628.2 billion. Brokerage assets were up almost 1% from March 2023 and 9.8% year over year. Advisory assets grew 1.2% from the prior month and 7.1% from April 2022.
LPL Financial’s total net new assets (NNAs) were $4.4 billion in the reported month. NNAs were $10.6 billion and $1.9 billion in March 2023 and April 2022, respectively.
The company reported $50.9 billion of total client cash balance, down 6.8% from March 2023 and 17.5% from April 2022. Of the total balance, $37 billion was insured cash and $9.5 billion was deposit cash, while the remaining was money-market balance.
LPL Financial’s recruiting efforts and solid advisor productivity will support advisory revenues. Also, it is expanding through strategic buyouts on the back of a solid balance sheet position. However, the challenging operating backdrop is a major near-term headwind.
The stock has lost 12.2% over the past six months compared with an 18.1% decline witnessed by the industry.
Image Source: Zacks Investment Research
LPLA currently carries a Zacks Rank #4 (Sell).
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 already come out with monthly data for April are Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers released the Electronic Brokerage segment’s performance metrics for April 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and a year-over-year basis.
IBKR's total client DARTs for the month were 1,765,000, which declined 14% from the March 2023 level and 20% year over year.
Schwab released its monthly activity report for April 2023. Core net new assets were negative $2.3 billion in the month. It had reported core net new assets of $53.9 billion in March 2023 and negative net new assets of $9.2 million.
SCHW’s total client assets were $7.63 trillion, up 1% from March 2023 and 5% from April 2022. Likewise, client assets receiving ongoing advisory services were $3.92 trillion, rising marginally from the prior month and 6% year over year.