LPL Financial's July Brokerage & Advisory Assets Improve

LPL Financial Holdings Inc.’s 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 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. 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 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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E*TRADE Financial Corporation (ETFC) : Free Stock Analysis Report
 
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
 
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
 
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
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