Legg Mason Inc. (LM) Stock Rating Upgraded by Zacks Investment Research
Legg Mason Inc. (NYSE:LM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The brokerage currently has a $38.00 price objective on the stock. Zacks Investment Research’s target price indicates a potential upside of 11.80% from the company’s current price.
According to Zacks, “Legg Mason’s estimates have been increasing lately ahead of its second-quarter fiscal 2017 earnings release. The company’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, stringent regulatory landscape and the current cyclical and secular pressures in the asset management business remain concerns for Legg Mason.”
A number of other brokerages have also issued reports on LM. Morgan Stanley reissued a “hold” rating on shares of Legg Mason in a report on Friday, September 9th. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $4.00 price objective on shares of Legg Mason in a report on Monday, September 12th. Barclays PLC reissued an “overweight” rating and issued a $41.00 price objective on shares of Legg Mason in a report on Sunday, July 31st. Jefferies Group reissued a “buy” rating on shares of Legg Mason in a report on Thursday, August 11th. Finally, Wells Fargo & Co. reissued a “buy” rating on shares of Legg Mason in a report on Monday, July 18th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and eight have assigned a buy rating to the stock. Legg Mason currently has an average rating of “Buy” and an average price target of $37.70.
Legg Mason (NYSE:LM) opened at 33.99 on Friday. The stock’s market cap is $3.52 billion. The firm’s 50-day moving average is $34.06 and its 200-day moving average is $32.98. Legg Mason has a 52-week low of $24.93 and a 52-week high of $46.41.
Legg Mason (NYSE:LM) last announced its quarterly earnings data on Wednesday, July 27th. The company reported $0.31 earnings per share (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 firm earned $700.20 million during the quarter, compared to analyst estimates of $681.99 million. During the same quarter in the prior year, the firm posted $1.14 earnings per share. Legg Mason’s quarterly revenue was down 1.2% on a year-over-year basis. Equities research analysts predict that Legg Mason will post $2.31 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 24th. Investors of record on Thursday, October 6th will be paid a dividend of $0.22 per share. The ex-dividend date of this dividend is Tuesday, October 4th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.59%. Legg Mason’s payout ratio is -103.53%.
Hedge funds have recently added to or reduced their stakes in the company. CIBC Asset Management Inc raised its stake in Legg Mason by 0.9% in the second quarter. CIBC Asset Management Inc now owns 11,545 shares of the company’s stock worth $340,000 after buying an additional 104 shares during the last quarter. Gyroscope Capital Management Group LLC raised its stake in Legg Mason by 0.6% in the second quarter. Gyroscope Capital Management Group LLC now owns 18,329 shares of the company’s stock worth $541,000 after buying an additional 116 shares during the last quarter. World Asset Management Inc raised its stake in Legg Mason by 1.9% in the second quarter. World Asset Management Inc now owns 11,267 shares of the company’s stock worth $332,000 after buying an additional 211 shares during the last quarter. Mutual of America Capital Management LLC raised its stake in Legg Mason by 3.5% in the second quarter. Mutual of America Capital Management LLC now owns 12,220 shares of the company’s stock worth $360,000 after buying an additional 411 shares during the last quarter. Finally, BOKF NA raised its stake in Legg Mason by 1.6% in the second quarter. BOKF NA now owns 26,278 shares of the company’s stock worth $775,000 after buying an additional 411 shares during the last quarter. Hedge funds and other institutional investors own 78.66% of the company’s stock.
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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