LPL Financial (LPLA) Reports Increase In November Metrics

LPL Financial Holdings Inc.’s (NASDAQ:LPLA) activity report for November 2018 reflects improvement. The company’s total brokerage and advisory assets of $659.7 billion at the end of the month were up 1.6% sequentially and 14.7% year over year.

Of the total brokerage and advisory assets, brokerage assets were $362.7 billion while advisory assets totaled $297 billion.

Further, total net new assets were an inflow of $2.9 billion in November. This included $0.2 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 $3.1 billion.

LPL Financial reported $29.9 billion of total client cash sweep balances, up 2.7% from the prior month and 7.9% from November 2017. Of the total, $21.8 billion was insured cash, $4.3 billion was deposit cash while the remaining $3.9 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 rallied 3.4% over the past year against the industry’s fall of 25.3%.



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) reported a rise in Daily Average Revenue Trades (DARTs) in November on a year-over-year basis. According to its monthly market activity, the company’s DARTs came in at 275,319, up 11% year over year but down 9% from the prior month. Notably, derivatives comprised 32% of DARTs in August.

Interactive Brokers Group, Inc.’s (NYSE:IBKR) Electronic Brokerage segment performed decently in November. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a year-over-year rise in DARTs for November. Total client DARTs came in at 907,000, increasing 14% from November 2017 but decreasing 8% from October 2018.

Charles Schwab’s (NYSE:SCHW) monthly activity for November 2018 reflects year over year and sequential rise. Total client assets came in at $3.4 trillion at the end of the month, increasing 3% from the year-ago month and 1% from the prior month.

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