LPL Financial Holdings Inc. (LPLA) Stock Moves Down and Here’s Why

Zacks Investment Research (LPL Financial Holdings Inc.: NASDAQ) shares fell on Wednesday Dec 28 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.

The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.

Shares of Zacks Investment Research (LPL Financial Holdings Inc.: NASDAQ) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the shares, LPL Financial Holdings Inc. has a 52-week high of $43.89. A number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $34.67, less than the opening price of $36.40, a difference of 9.58 percent. Downgrades happen when analysts feel that the future prospects for the security have dropped from the initial recommendation, usually caused by a material and fundamental change in the company’s operations, future outlook or industry.

Shares of Zacks Investment Research (LPL Financial Holdings Inc.: NASDAQ) opened at $36.40 on Tuesday trading between $36.09 and $36.40, and last traded at $36.20, which is a drop of $0.09 per share or -0.23% from the previous closing price.

Zacks Investment Research (LPL Financial Holdings Inc.: NASDAQ) currently has a market cap of 3.23B.

Zacks Investment Research (LPL Financial Holdings Inc.: NASDAQ) Average Daily Trading Volume

13,431 shares traded hands yesterday, below the average, out of a total float 53,089,000. Investors often use increases in trading volume to determine heavy volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.

However, one day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Zacks Investment Research (LPL Financial Holdings Inc.: NASDAQ) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

With that in mind, Zacks Investment Research (LPL Financial Holdings Inc.: NASDAQ) now has a 50-day MA of $37.79 and 200-day MA of $30.13. It has traded in a 52-week range between $15.38 – 43.890 and today’s last price is 17.53%% lower than the 52 week high of $43.89.

Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have increased their earnings by at least 25% over 3 consecutive years.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.

Leave a Reply

Your email address will not be published. Required fields are marked *