LPL Financial's July Brokerage & Advisory Assets Improve

LPL Financial Holdings Inc.’s (NASDAQ:LPLA) total brokerage and advisory assets of $713.4 billion at the end of July 2019 grew 1% sequentially and 6.7% year over year. Of the total brokerage and advisory assets, brokerage assets were $381.3 billion while advisory assets totaled $332.1 billion.

Further, total net new assets were an inflow of $2.7 billion in July. This included $0.5 billion of outflows from a large hybrid firm. Prior to these outflows, total net new assets were an inflow of $3.2 billion.

LPL Financial reported $29.9 billion of total client cash sweep balances, down nearly 1% from June 2019 but up 6% from July 2018. Of the total, $21.3 billion was insured cash and $4.2 billion was deposit cash while the remaining $4.3 billion was money market balance.

Backed by decent equity markets performance, trading activities are expected to improve. This, in turn, will support revenues.

Shares of LPL Financial have rallied 20.8% so far this year, outperforming 0.7% rise for the industry.

LPL Financial currently has 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’s (NASDAQ:ETFC) Daily Average Revenue Trades (DARTs) for July were 255,423, up 1% from the previous month and 5% year over year. Derivatives comprised 35% of DARTs in July.

Interactive Brokers Group, Inc. (NYSE:IBKR) released its Electronic Brokerage segment’s performance metrics for July. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a sequential decrease in DARTs. Total client DARTs were 800,000, down 1% from the prior month.

Charles Schwab (NYSE:SCHW) released its monthly activity report for July 2019. Net new assets of $19.3 billion declined 4% from the prior month. Nonetheless, it grew 18% year over year. However, total client assets came in at $3.7 trillion, up 1% from the prior month and 8% from the year-ago month. Client assets receiving ongoing advisory services were $1.96 trillion, up 1% sequentially and 8% year over year.

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