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Is this Large Market Cap Stock target price reasonable for LPL Financial Holdings Inc. (NASDAQ:LPLA)?

The company in question is, LPL Financial Holdings Inc. (NASDAQ:LPLA) currently with a stock price of 30.99 (-2.97% today). The market cap for LPL Financial Holdings Inc. is 2847.77, and is in the sector Financial, and Investment Brokerage РNational industry. The target price for LPL Financial Holdings Inc. is 27.06. Currently LPL Financial Holdings Inc. is trading with a P/E of 17.71, and a forward P/E of 16.6. Average volume for LPL Financial Holdings Inc. is 656.32 and so far today it is 546732.

Performance in the last year for LPL Financial Holdings Inc. has been -11.80%. For EPS growth, LPL Financial Holdings Inc. has seen a growth of -0.40%, and is looking to grow in the next year to 4.17%. More long term stats show that EPS growth has been 36.50% over the last five years and could be 13.75% for the next five years. LPL Financial Holdings Inc. has seen sales growth quarter over quarter at -6.60%, with EPS growth quarter over quarter at 3.20%. The 20-day simple moving average is 6.27%, with the 200-day simple moving average coming to 17.59%.

Since the IPO date for LPL Financial Holdings Inc. on the 11/18/2010, LPL Financial Holdings Inc. has seen performance year to date to be -22.68%. With LPL Financial Holdings Inc. trading at 30.99, the dividend yield is 3.13%, and the EPS is 1.8.

So could LPL Financial Holdings Inc., be undervalued? Well as said before P/E is 17.71. The PEG is 1.29, P/S is 0.69 and the P/B is at 3.77. The P/cash is 2.04, with P/free cash flow at *TBA.

LPL Financial Holdings Inc. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 3.02, and total debt/equity at 3.22.

In terms of margins, LPL Financial Holdings Inc. has a gross margin of 98.70%, an operating margin of 8.70% and a profit margin of 4.10%.Payout ratio for LPL Financial Holdings Inc. is 54.90%. Return on assets come to 3.80% with return on investment coming to 7.20%.

Insider ownership for LPL Financial Holdings Inc., is at 0.10% and institutional ownership comes to *TBA. Outstanding shares are at 89.16. While shares float is 88.01. The float short is currently 16.84%, and short ratio is 22.58.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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