Back to top

Image: Bigstock

LPL Financial (LPLA) Reports Decline in October Metrics

Read MoreHide Full Article

LPL Financial Holdings Inc.’s (LPLA - Free Report) activity report for October 2018 reflects deterioration from the prior month. The company’s total brokerage and advisory assets of $649.3 billion at the end of October were down 4.7% sequentially. Of the total brokerage and advisory assets, brokerage assets were $357.5 billion while advisory assets totaled $291.7 billion.

Additionally, total net new assets were an inflow of $2.2 billion in October. This included $0.3 billion of outflows from a small number of hybrid firms, in line with LPL Financial’s expectations as discussed during its second quarter and third-quarter 2018 earnings calls.  Prior to these outflows, total net new assets were an inflow of $2.5 billion.

LPL Financial reported $29.1 billion of total client cash sweep balances for October, up 3.2% sequentially. Of the total, $21.4 billion was insured cash, $4.2 billion was deposit cash while the remaining $3.5 billion was money market cash balance.

With the gradual stabilization of equity markets, trading activities are anticipated to improve. However, dismal top-line growth poses a near-term concern.

Shares of LPL Financial have declined 5.8% over the past three months compared with the industry’s fall of 10.5%.



LPL Financial 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 Investment Brokers

E*TRADE Financial has reported a rise in Daily Average Revenue Trades (DARTs) for October 2018. According to its monthly market activity, the company’s DARTs came in at 301,625, up 7% from the previous month and 40% year over year. Notably, derivatives comprised 32% of DARTs in October.

Interactive Brokers Group’s (IBKR - Free Report) Electronic Brokerage segment reported year-over-year increase in DARTs for October. The segment deals with clearance and settlement of trades for individual and institutional clients globally. Total client DARTs came in at 986,000, surging 41% from October 2017 and 22% from September 2018.

Charles Schwab’s (SCHW - Free Report) monthly activity for October 2018 reflects year-over-year rise. Total client assets were $3.4 trillion at the end of the month, increasing 4% from the year-ago month.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Published in