LPL Financial (LPLA – Free Report) witnessed a rise in total brokerage and advisory assets in February 2025. The metric was $1.82 trillion, which grew 0.6% from the prior month and 29.9% year over year.
LPLA’s Performance Breakdown
Of LPLA’s total assets, brokerage assets were $828.2 billion and advisory assets amounted to $995 billion. Brokerage assets grew 1.1% from January 2025 and 30.4% year over year. Advisory assets inched up 0.3% from the previous month and rose 29.5% from February 2024.
Total net new assets (NNAs) were $24.5 billion in February. It included $0.7 billion of acquired NNAs from Liquidity & Succession activity. Total organic NNAs were $23.8 billion, including $13.7 billion of assets from Prudential Advisors (“Prudential”) and $0.3 billion from Wintrust Investments, LLC (“Wintrust”) that were onboarded in February, and $0.2 billion off-boarded assets as part of the previously disclosed planned separation from misaligned large offices of supervisory jurisdiction. Excluding these assets, organic NNAs were $10 billion.
The company reported $51.3 billion of total client cash balance in February, edging down 1.7% from the prior month but moving up 11.5% from February 2024. Of the total balance, $35.6 billion was insured cash, $10.2 billion was deposit cash, and the remaining was money-market sweep and client cash balance.
Our Take on LPLA Stock
LPL Financial’s impending buyout of Investment Center, the acquisition of Atria Wealth, solid advisor productivity and recruiting efforts will aid advisory revenues. The company is expected to keep expanding through acquisitions, which will help diversify operations. However, uncertainty about the performance of the capital markets and substantial goodwill on the balance sheet are worrisome.
In the past six months, LPLA shares have risen 42.6%, outperforming the industry’s growth of 18.1%.
Image Source: Zacks Investment Research
Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of LPLA’s Peers in February
Charles Schwab (SCHW – Free Report) released its monthly activity report for February 2025. The company’s core net new assets (NNA) of $48 billion jumped 57% from the previous month and 44% from the year-ago month. This was largely driven by significant market volatility.
SCHW’s total client assets in February 2025 were $10.28 trillion, down 1% from January 2025 but up 16% from February 2024. Client assets receiving ongoing advisory services were $5.2 trillion, relatively stable with the prior month and up 38% from the year-ago period.
Interactive Brokers Group, Inc. (IBKR – Free Report) released the Electronic Brokerage segment’s performance metrics for February 2025. The segment deals with clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs) from a year ago.
IBKR’s total client DARTs in February were 3,267,000, which increased 48.1% from February 2024 and 4.1% from January 2025.
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