LPL Financial's April Brokerage and Advisory Assets Increase

LPL Financial Holdings Inc.’s LPLA total brokerage and advisory assets of $699.3 billion at the end of April 2019 improved 7.2% year over year and 2.2% sequentially. Of the total brokerage and advisory assets, brokerage assets were $378.2 billion while advisory assets totaled $320.5 billion.

Further, total net new assets were an inflow of $0.7 billion in April. This included $0.3 billion of outflows from a large hybrid firm.  Prior to these outflows, total net new assets were an inflow of $1 billion.

LPL Financial reported $29.2 billion of total client cash sweep balances, up 1% from April 2018 but down 4.9% from the prior month. Of the total, $20.7 billion was insured cash and $4.1 billion was deposit cash while the remaining $4.4 billion was money market cash balance.

With the decent equity markets performance, trading activities are anticipated to improve. This will likely result in an increase in brokerage and advisory assets, which in turn will support revenues.

Shares of LPL Financial have rallied 35.2% so far this year, outperforming 7.7% rise for the industry.

LPL Financial currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Investment Brokers

E*TRADE Financial ETFC reported monthly market activity for April 2019. Daily Average Revenue Trades (DARTs) for the month were 272,858, down 5% from the previous month but up 13% year over year. Derivatives comprised 32% of DARTs in April.

Interactive Brokers Group, Inc. IBKR released its Electronic Brokerage segment’s performance metrics for April. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a year-over-year and sequential decrease in DARTs. Total client DARTs were 778,000, down 4% from April 2018 and 10% from March 2019.

Charles Schwab SCHW reported monthly activity for April 2019. Total client assets came in at $3.7 trillion, up 11% from the year-ago month and 2% from the prior month. Further, client assets receiving ongoing advisory services were $1.913.7 trillion, up 11% year over year and 2% sequentially.

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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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