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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 – National 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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