Trump announces trade deal with EU following months of negotiations
NEW YORK - LPL Financial Holdings Inc. (NASDAQ:LPLA), a financial services firm with a market capitalization of $29.91 billion and strong financial health according to InvestingPro metrics, reported total advisory and brokerage assets of $1.85 trillion at the end of May 2025, representing an increase of $66.6 billion or 3.7% from April, according to a monthly activity report released Monday.
The financial services firm posted total organic net new assets of $6.5 billion for May, translating to a 4.4% annualized growth rate. This figure included $1.0 billion of assets that off-boarded as part of a previously disclosed planned separation from what the company termed "misaligned large OSJs." Before these departures, organic net new assets were $7.5 billion, representing a 5.0% annualized growth rate. The company’s robust growth aligns with its impressive 25.69% revenue growth over the last twelve months, as reported by InvestingPro.
Total client cash balances decreased by $2.6 billion from April to $49.2 billion at the end of May. Net buying activity for the month reached $13.5 billion.
The company’s advisory assets rose to $1.02 trillion, a 4.4% increase from April, while brokerage assets grew to $832.9 billion, up 2.9% month-over-month. Year-over-year, total advisory and brokerage assets increased by 26.5% from $1.47 trillion in May 2024.
Client cash sweep balances held by third parties totaled $47.9 billion, down 4.6% from April. This included $33.4 billion in insured cash account sweep and $10.6 billion in deposit cash account sweep.
The report noted that the S&P 500 Index stood at 5,912 at the end of May, a 6.2% increase from April’s close of 5,569.
The information in this article is based on a press release statement from LPL Financial.
In other recent news, LPL Financial Holdings reported earnings that exceeded expectations, leading Keefe, Bruyette & Woods to raise the company’s price target to $405 and maintain an Outperform rating. This earnings beat was driven by increased gross profit, reduced operating expenses, and lower non-operating expenses. Meanwhile, Morgan Stanley has also expressed optimism, lifting their price target to $450 and maintaining an Overweight rating, citing anticipated robust revenue growth despite rising expenses. Redburn-Atlantic joined in with an upgrade from Neutral to Buy, raising their price target to $460, highlighting LPL Financial’s strategic positioning in the advisor-mediated market. However, Citi downgraded LPL Financial to Neutral from Buy, due to valuation concerns after a significant stock increase, setting a price target of $400. Citi analysts remain optimistic about long-term growth potential but note increased competition in financial advisor recruiting. Additionally, LPL Financial announced that its Chief Legal Officer, Althea Brown, will resign at the end of June 2025 to take a career break. This announcement was made in an 8-K filing with the SEC, and Brown will assist in developing a succession plan during the transition period.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.