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LPL Financial (LPLA) October Metrics Rise, Stock Down 1.5%

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LPL Financial Holdings Inc.’s LPLA total brokerage and advisory assets were $1.18 trillion at the end of October 2021. It grew 4.2% from the prior month and 46.2% year over year. Of the total assets, brokerage assets were $557.2 billion and advisory assets totaled $623.3 billion.

The increase in LPLA’s assets balance was mainly driven by the impressive performance of the equity markets and growth in net new assets balance.

Despite this favorable development, shares of LPL Financial fell 1.5% during the last day’s trading.

LPL Financial’s total net new assets were $7.2 billion in the reported month. Net new assets were $9.1 billion and $5 billion in September 2021 and October 2020, respectively.

Also, LPL Financial reported $50.9 billion of total client cash balance, up marginally from September 2021 and 5.4% from October 2020. Of the total balance, $29.3 billion was insured cash and $8.5 billion was deposit cash while the remaining was money-market balance.

LPL Financial’s recruiting efforts and solid advisor productivity will continue aiding advisory revenues. Also, it is expanding through strategic buyouts, given a solid balance sheet position.

Shares of LPL Financial have surged 57.4% so far this year, outperforming 34.7% growth recorded by the industry.

Zacks Investment Research
Zacks Investment Research

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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

Some of the other brokerage firms that come out with monthly data are Interactive Brokers Group IBKR, Tradeweb Markets Inc. TW, and Charles Schwab SCHW.

Interactive Brokers’ Electronic Brokerage segment announces performance metrics. For October, the segment (that deals with the clearance and settlement of trades for individual and institutional clients globally) reported a surge in client Daily Average Revenue Trades (DARTs) both on a year-over-year and a sequential basis. Interactive Brokers’ total client DARTs were 2,305,000 in the reported month, which grew 31% from October 2020 and 2% from September 2021.

Tradeweb Markets reported total trading volume of $25.6 trillion in October 2021. Average daily volumes were $1.26 trillion, up 39.4% year over year.

Lee Olesky, the CEO, said: “October 2021 was a record-breaking month for Tradeweb, with incredibly strong results in government bonds, rates derivatives and credit.”

Schwab’s total client assets were $7.98 trillion in October 2021, up 5% from September 2021 and 36% from October 2020. Client assets receiving ongoing advisory services were $3.95 trillion, up 4% from the prior month and 35% year over year.

Further, Schwab’s core net new assets were $36.8 billion during the reported month. This reflected a decrease of 14% from the previous month but a 44% increase year over year.

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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report

Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report

Tradeweb Markets Inc. (TW) : Free Stock Analysis Report

LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report

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