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Friday, February 21, 2014

Here's the Drill-Down of LPL's Valentine's Deals

Reported by Tommy Fernandez

Okay. So you all know, or should know by now, the latest set of big share transactions involving LPL Financial Holdings that took place during the week of Saint Valentine's Day.

For example, LPL announced February 13th that TPG Global was selling 1.9 million LPL shares to a private investor, and another 1.9 million LPL shares back to LPL itself: all at the price of $52 per share.

TPG, which was one of LPL's original investors, will earn about $100 million for each transaction, of course totaling a net $200 million for the Fort Worth, Texas-based investment firm. According to an SEC filing, TPG now owns 13,113,819 shares in LPL. LPL has roughly 100 million shares outstanding.

TPG wasn't the only major shareholder exchanging shares this month.

For example, in the deal announced on February 13th, the private investor buying 1.9 million shares from TPG will be buying an additional 100,000 shares from LPL president Robert Moore and chief financial officer Dan Arnold.

According to this SEC filing, Moore actually made three stock transactions during that week. On February 12th, he sold 30,000 shares, at $52 per share of course, leaving him with a total of 10,000 LPL shares in his ownership. Then on February 14th, he exercised options to buy 129,999 shares (at a price of $19.74 per share), and then proceeded to sell on that same day 99,993 shares at $52 per share.

Arnold meanwhile, sold 70,000 shares on February 12th according to this SEC filing, of course at $52. That left him with 173,521 shares.

Another executive, managing director for independent advisor services Derek Bruton, exercised an option on February 14th to buy 16,000 shares (at $22.08 per share) and then sold them for $53.21, according to this SEC filing.

Meanwhile, LPL chairman and CEO Mark Casady also disposed of 150,000 shares on February 14, but according to this SEC filing the transaction was conducted for $0 (a non open market disposition). According to the filing, Casady still owns 309,857 shares in LPL.

For a listing of all the deals that took place through Valentine's week, click here

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