Updated Sunday, August 31, 2014 as of 4:19 AM ET

$100 Million Stock Buyback Deal Part of LPL Capital Strategy

As promised, LPL Financial, parent company of the nation’s largest independent broker-dealer, will continue its policy of “returning capital to shareholders” by agreeing to repurchase nearly 2 million shares of its common stock.

Hot on the heels of record revenues for 2013, LPL has entered into a share purchase agreement to buy 1.9 million shares for $100 million at $52 per share from TPG Global, a Fort Worth, Texas-based private equity firm that was one of the company’s original investors.

Repurchasing stock is part of LPL’s strategy of a “returning capital to our shareholders,” LPL chief financial officer Dan Arnold said during a call with analysts earlier this week following  the release of the company’s fourth quarter and year-end earnings results.

Arnold noted  that LPL  bought back $35 million of shares in the fourth quarter, “reflecting our flexibility in deploying our capital.”

“With our decision to forego pursuing a conversion to a bank holding company,” Arnold told the analysts, “we retain the capitalized nature of our model, which provides us the opportunity to continue to invest in the business and return capital to shareholders through growing dividends and share repurchases.”

TPG is also selling another 1.9 million shares of LPL common stock to a private investor, reducing TPG’s stake in the company to about 13% from 16%

In addition, Arnold and Robert Moore, the company’s president will sell a combined total of 100,000 shares to the private investor in the offering.

No shares are being sold by LPL, the company said in a release.

LPL shares were up 2.2% in Thursday afternoon trading, at $53.76. 

Get access to this article and thousands more...

All On Wall Street articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.

Already Registered?

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Already a subscriber? Log in here