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SAN DIEGO - LPL Financial Holdings Inc. (NASDAQ: LPLA), a leading wealth management firm with a market capitalization of $25.12 billion and a "GOOD" financial health rating according to InvestingPro, announced today its initiation of a public offering of common stock valued at $1.5 billion. The company also intends to provide underwriters a 30-day option to purchase an additional $225 million worth of shares.
Morgan Stanley & Co. LLC is the sole active book-running manager for this offering. The proceeds are earmarked to partly fund the acquisition of Commonwealth Financial Network, a transaction previously disclosed by LPL. Should any funds remain after this acquisition, or if the acquisition does not finalize, the company plans to allocate the remaining proceeds for general corporate purposes.
To complete the purchase of Commonwealth Financial Network, LPL anticipates using not only the net proceeds from this stock offering but also available cash and other borrowings. The shares are being offered pursuant to a shelf registration statement filed with the Securities and Exchange Commission (SEC) on March 25, 2025, which is now effective.
The offering is contingent on market conditions and the satisfaction of customary closing conditions. There is no guarantee that the offering will be completed as planned or at all. Investors will be able to obtain copies of the preliminary prospectus supplement and accompanying prospectus from Morgan Stanley & Co. LLC once filed with the SEC.
LPL Financial supports nearly 29,000 financial advisors and approximately 1,200 financial institutions. The firm oversees roughly $1.7 trillion in brokerage and advisory assets, offering a variety of affiliation models, investment solutions, and financial technology tools.
The company’s forward-looking statements, such as the anticipated timing, size, and completion of the offering, are subject to market conditions and other factors that could cause actual results to differ materially from expectations.
This news article is based on a press release statement from LPL Financial Holdings Inc.
In other recent news, LPL Financial Holdings Inc. reported fourth-quarter 2024 earnings that exceeded analyst expectations. The company achieved an adjusted earnings per share of $4.25, surpassing the forecasted $3.96, and reported revenue of $3.51 billion, which was higher than the anticipated $3.27 billion. Additionally, LPL Financial’s advisory and brokerage assets grew to $1.7 trillion, reflecting a 9% increase from the previous quarter. In a strategic move to strengthen its financial position, LPL Holdings, a subsidiary of LPL Financial, issued $1.25 billion in senior unsecured notes.
The company has also been in the spotlight due to speculation about a potential acquisition of Commonwealth Financial, although no official confirmation has been made. Meanwhile, JMP analysts maintained a Market Outperform rating for LPL Financial, indicating continued confidence in the company’s prospects. In leadership news, LPL Financial appointed Katharine Reeping as its new Chief Accounting Officer, effective February 28, 2025. The firm also welcomed the Lex brothers, managing $630 million in assets, to its platforms, further expanding its advisor network. These developments signal LPL Financial’s ongoing efforts to enhance its market position and service offerings.
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