LPL Financial (LPLA) Reports Decline In October Metrics

LPL Financial Holdings Inc.’s (NASDAQ:LPLA) 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 (NASDAQ:ETFC) 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 (NYSE:IBKR) 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 (NYSE:SCHW) 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.

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