Why Was LPL Financial Up 4% On Mixed Data For April?

LPL Financial Holdings Inc. (NASDAQ:LPLA) was up nearly 4% following the release of its monthly activity report for Apr 2016 on Thursday, after the market closed. Though the company reported mixed metrics for the month, overall positive market sentiments and improved brokerage and advisory assets were the primary reasons for jump in the share price.

LPL Financial recorded total brokerage and advisory assets of $482.0 billion at the end of Apr 2016, up 0.7% from the prior month. Of these, brokerage assets stood at $290.3 billion, while advisory assets were $191.7 billion as of Apr 30, 2016.

However, LPL Financial reported $29.5 billion of total client cash sweep balances for Apr 2016, down 3.0% from Mar 2016. Of the total cash balance, $21.1 billion was insured cash, while the remaining $8.4 billion was money market cash balance.

With the gradual stabilization of global equity markets, trading activities are anticipated to improve. Though, this will likely benefit LPL Financial, fluctuating interest rates are expected to adversely impact the company’s financials in the near term.

LPL Financial currently sports a Zacks Rank #1 (Strong Buy).

Performance of Other Investment Brokers

E*TRADE Financial Corporation (NASDAQ:ETFC) reported a rise in its Daily Average Revenue Trades (DARTs) in the monthly market activity report for Apr 2016. According to the report, E*TRADE’s DARTs were 159,215, up 1% from both sequentially and on a year-over-year basis.

TD Ameritrade Holding Corporation (NASDAQ:AMTD) came up with average client trades per day of 470,000 in its activity report for Apr 2016. This marks a 3% rise from the prior-year period and 2% from the previous month.

The Charles Schwab Corporation (NYSE:SCHW) recorded net new assets (brought by existing as well as new clients) of $1.3 billion, down 86% from the prior year period and 90% from the preceding month. However, Total client assets were $2.58 trillion, up 1% on both year over year and sequential basis.


E TRADE FINL CP (ETFC): Free Stock Analysis Report

SCHWAB(CHAS) (SCHW): Free Stock Analysis Report

TD AMERITRADE (AMTD): Free Stock Analysis Report

LPL FINL HLDGS (LPLA): Free Stock Analysis Report

Original post

Zacks Investment Research