LPL Financial Holdings (LPLA) Stock: Gaining On Acquisition Hopes


LPL Financial Holdings Inc (NASDAQ: LPLA)

LPL Financial Holdings was off to a normal start to the market. However, shortly into the trading session, the CNA Finance team noticed a spike in the value of the stock. We believe that we know why the movement is happening. Below, we’ll talk about what we’re seeing, why, and what we can expect to see from LPLA ahead.

What We’re Seeing From LPLA

As mentioned above, LPL Financial was off to a relatively normal start in the market. However, just minutes ago, the stock started to scream upward. Currently (10:31), LPLA is trading at $31.58 per share after a gain of $0.62 per share (2.00%) thus far today.

Why We’re Seeing The Gains

As soon as we noticed that spike on the stock, the CNA Finance team went digging to see what was causing the movement. We believe we’ve found the culprit. While there has been no fundamental news released with regard to the company directly, there is a rumor circling around.

The rumor is simple. Many believe that LPLA is in talks with private equity buyers. This could mean a few different things. First, the company is looking for funds, and equity seems to be a good way to get them. Another option, and perhaps why the stock is climbing so much, is that the private equity buyers may want to take the company private. Nonetheless, this is all speculation, as there has been no official news reported in connection to the story.

What We Should Be Watching For Ahead

Moving forward, investors should keep a close eye on what’s going on with the private equity firm. With the rumor surfacing, we can just about bet that we will see some news on this relatively soon. So, if you’re investing in LPL Financial (LPLA), this is going to be the story to watch.

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