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LPL Financial April Assets Improve on Solid Equity Markets

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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets of $718 billion at the end of April 2020 grew 7.2% from the prior month and 2.7% year over year. Of the total brokerage and advisory assets, brokerage assets were $369.1 billion and advisory assets totaled $348.9 billion.

The sequential rise resulted from improved equity markets, including a 12.7% rally in the S&P 500 Index.

Total net new assets were $3.4 billion in April. This compared unfavorably with $5.6 billion in March 2020 but favorably with $0.9 billion in April 2019.

LPL Financial reported $47 billion of total client cash balance, down 1.7% from March 2020 but up 12.7% from April 2019. Of the total, $33.9 billion was insured cash and $8.5 billion was deposit cash, while the remaining was money market balance.

Shares of LPL Financial have lost 16.4% over the past year compared with 18.5% decline 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 the Electronic Brokerage segment’s performance metrics for April 2020. The segment, which deals with clearance and settlement of trades for individual and institutional clients globally, reported a substantial surge in Daily Average Revenue Trades (DARTs) on a year-over-year basis.

Charles Schwab (SCHW - Free Report) reported monthly activity report for April 2020. The company recorded net new assets of $15.3 billion, down 45% from the previous month. In the prior-year month, net new assets were an outflow of $0.3 billion.

E*TRADE Financial (ETFC - Free Report) reported a rise in DARTs for April. According to its monthly-market activity, the company’s DARTs came in at 927,671, up 3% from the previous month and more than 200% year over year. Notably, derivatives comprised 25% of DARTs in the reported month.

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