LPL Financial LPLA shares jumped 3.1% since last week’s announcement of a rise in total brokerage and advisory assets at the end of October 2024. The metric was $1.67 trillion, which grew 5.1% from the prior month and 37.2% year over year. The rise was driven by robust market performance and the acquisition of Atria Wealth Solutions, Inc.

Of LPLA’s total assets, brokerage assets were $762.7 billion and advisory assets amounted to $910.6 billion. Brokerage assets jumped 8.9% from September 2024 and 34.8% year over year. Advisory assets were up 2.1% from the previous month and 39.3% from October 2023.

Total net new assets (NNAs) were $96.6 billion in October. It included $0.3 billion of acquired net new assets from Liquidity & Succession activity and $88 billion of acquired assets from the Atria buyout. Total organic NNAs were $8.3 billion and included $1 billion off-boarded assets as part of the previously disclosed planned separation from misaligned large OSJs. Excluding these assets, organic NNAs were $9.3 billion.

The company reported $48.3 billion of total client cash balance in October, up 5.5% from the prior month and 3.6% from October 2023. Of the total balance, $34.7 billion was insured cash and $9.7 billion was deposit cash, while the remaining was money-market sweep and client cash balance.

Our Take on LPLA Stock

LPL Financial’s recruiting efforts and solid advisor productivity will likely support advisory revenues. The company is expected to keep expanding through strategic acquisitions, which will help diversify operations. However, the challenging operating backdrop remains a near-term headwind, which may hurt the company’s financials.

In the past three months, LPLA’s shares have surged 45.1%, outperforming the industry’s rise of 21.1%.
 

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Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of LPLA’s Peers in October

Interactive Brokers Group, Inc. IBKR has released the Electronic Brokerage segment’s performance metrics for October 2024. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs).

IBKR’s total client DARTs for October were 2,823,000, which increased 46% from October 2023 and 7.2% from last month.

Charles Schwab SCHW reported its monthly activity report for October 2024. The company’s core NNAs of $24.6 billion surged substantially from $11.3 billion recorded in the year-ago month but declined from the previous month’s $33.5 billion.

SCHW’s total client assets in October 2024 were $9.85 trillion, down marginally from the September 2024 level but up 28.7% from October 2023. Client assets receiving ongoing advisory services were $4.97 trillion, falling 1% from the prior month and rising 27.3% year over year.

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