Legg Mason Inc. (LM) Upgraded to “Hold” at Zacks Investment Research
According to Zacks, “We believe Legg Mason’s continued strategic acquisitions over the last few years, including the acquisition of Financial Guard in Aug 2016, will boost the company’s top-line growth. Notably, management expects to remain focused on generating overall inflows in the coming years, thereby enhancing assets under management. Further, sound liquidity position and cost saving measures should bolster profitability. However, we believe that an absence of significant improvement in the company’s investment management performance may result in continuation of equity AUM outflows in the coming years. Further, regulatory headwinds and low interest rate environment may hinder its money market fund business, thereby impacting profitability.”
Other analysts have also recently issued research reports about the stock. Citigroup Inc. reissued a buy rating and set a $45.00 price target on shares of Legg Mason in a research report on Thursday, June 30th. Jefferies Group reissued a buy rating and set a $36.00 price target (down previously from $39.00) on shares of Legg Mason in a research report on Monday, July 11th. Wells Fargo & Co. reissued a buy rating on shares of Legg Mason in a research report on Monday, July 18th. Morgan Stanley increased their price target on shares of Legg Mason from $37.00 to $38.00 and gave the stock an equal weight rating in a research report on Thursday, July 28th. Finally, Barclays PLC reissued an overweight rating and set a $41.00 price target on shares of Legg Mason in a research report on Sunday, July 31st. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and seven have issued a buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average price target of $37.20.
Shares of Legg Mason (NYSE:LM) traded up 0.18% on Tuesday, hitting $33.43. 59,941 shares of the stock were exchanged. The company’s 50 day moving average is $34.12 and its 200-day moving average is $32.97. Legg Mason has a 52-week low of $24.93 and a 52-week high of $46.41. The stock’s market cap is $3.46 billion.
Legg Mason (NYSE:LM) last posted its earnings results on Wednesday, July 27th. The company reported $0.31 EPS for the quarter, beating the Zacks’ consensus estimate of $0.25 by $0.06. Legg Mason had a negative net margin of 3.25% and a positive return on equity of 7.06%. The company had revenue of $700.20 million for the quarter, compared to analysts’ expectations of $681.99 million. During the same quarter in the prior year, the company posted $1.14 earnings per share. Legg Mason’s revenue for the quarter was down 1.2% compared to the same quarter last year. Analysts predict that Legg Mason will post $2.31 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, October 24th. Investors of record on Thursday, October 6th will be issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 2.64%. The ex-dividend date of this dividend is Tuesday, October 4th. Legg Mason’s dividend payout ratio is presently -103.53%.
Several large investors have recently modified their holdings of LM. Kentucky Retirement Systems bought a new stake in shares of Legg Mason during the second quarter valued at $264,000. Mason Street Advisors LLC bought a new stake in shares of Legg Mason during the second quarter valued at $419,000. CI Investments Inc. increased its stake in shares of Legg Mason by 55.3% in the second quarter. CI Investments Inc. now owns 295,789 shares of the company’s stock valued at $8,723,000 after buying an additional 105,300 shares in the last quarter. Public Employees Retirement System of Ohio increased its stake in shares of Legg Mason by 3.3% in the second quarter. Public Employees Retirement System of Ohio now owns 35,430 shares of the company’s stock valued at $1,045,000 after buying an additional 1,116 shares in the last quarter. Finally, Calvert Investment Management Inc. increased its stake in shares of Legg Mason by 8.0% in the second quarter. Calvert Investment Management Inc. now owns 8,702 shares of the company’s stock valued at $257,000 after buying an additional 643 shares in the last quarter. 78.66% of the stock is owned by hedge funds and other institutional investors.
Legg Mason Company Profile
Legg Mason, Inc is a holding company. The Company and its subsidiaries are principally engaged in providing asset management and related financial services to individuals, institutions, corporations and municipalities. The Company operates through Global Asset Management segment. Global Asset Management provides investment advisory services to institutional and individual clients and to the Company-sponsored investment funds.
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