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LPLA Announces Y/Y Rise in Brokerage and Advisory Assets in November

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LPL Financial (LPLA - Free Report) witnessed a rise in total brokerage and advisory assets in November 2024. The metric was $1.76 trillion, which grew 5.1% from the prior month and 35.3% year over year.

LPLA’s Performance Breakdown

Of LPLA’s total assets, brokerage assets were $785.6 billion and advisory assets amounted to $973.8 billion. Brokerage assets jumped 3% from October 2024 and 31.3% year over year. Advisory assets were up 6.9% from the previous month and 38.7% from November 2023.

Total net new assets (NNAs) were $35 billion in November. It included $0.8 billion of acquired NNAs from Liquidity & Succession activity. Total organic NNAs were $34.2 billion, including $26.3 billion of assets from Prudential Advisors (“Prudential”) that were onboarded in November and $0.6 billion off-boarded assets as part of the previously disclosed planned separation from misaligned large OSJs. Excluding these assets, organic NNAs were $8.6 billion.

The company reported $50.5 billion of total client cash balance in November, up 4.6% from the prior month and 8.4% from November 2023. The figure included $1.9 billion resulting from the onboarding of Prudential. Of the total balance, $34.8 billion was insured cash and $9.9 billion was deposit cash, while the remaining was money-market sweep and client cash balance.

Our Take on LPLA Stock

LPL Financial’s planned buyout of Investment Center, the recent acquisition of Atria Wealth, solid advisor productivity and recruiting efforts will aid advisory revenues. The company is expected to keep expanding through strategic acquisitions, which will help diversify operations. However, uncertainty about the performance of the capital markets is a headwind, which may hurt the company’s financials.

In the past three months, LPLA’s shares have surged 49.2%, outperforming the industry’s growth of 17.9%. 

Zacks Investment Research
Image Source: Zacks Investment Research

Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of LPLA’s Peers in November

Charles Schwab (SCHW - Free Report) posted a rise in its total client assets for November.
 
SCHW’s total client assets in November 2024 were $10.31 trillion, up 5% from October 2024 and 26% from November 2023. Client assets receiving ongoing advisory services were $5.16 trillion, rising 4% from the prior month and 24% year over year.

Interactive Brokers Group, Inc. (IBKR - Free Report) released the Electronic Brokerage segment’s performance metrics for November 2024. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs).

IBKR’s total client DARTs in November were 3,306,000, which increased 74.2% from November 2023 and 17.1% from the last month.

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