Lamar Advertising Co. (LAMR) Rating Lowered to Hold at Zacks Investment Research
Lamar Advertising Co. (NASDAQ:LAMR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Lamar reported third-quarter 2016 adjusted funds from operations (FFO) of $1.37 per share, surpassing the Zacks Consensus Estimate of $1.25 and ahead of the year-ago tally of $1.27. The company’s diversified tenant base comprising different industries and impressive national footprint aid in keeping its growth momentum going. Further, solid growth opportunities in the outdoor advertising industry and healthy balance sheet bode well for the future. Recent hike in quarterly dividend payout is also encouraging. However, increased capital expenditures and higher expenses related to the acquired outdoor advertising assets could reduce free cash flow and strain its margins. Further, stiff competition and any rise in the interest rate pose challenges for Lamar.”
A number of other equities research analysts have also weighed in on LAMR. Gabelli lowered shares of Lamar Advertising from a “buy” rating to a “hold” rating and set a $64.00 target price on the stock. in a report on Thursday, July 21st. Loop Capital started coverage on shares of Lamar Advertising in a report on Monday, September 12th. They issued a “buy” rating on the stock. Five research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $65.75.
Shares of Lamar Advertising (NASDAQ:LAMR) opened at 59.89 on Wednesday. Lamar Advertising has a one year low of $49.73 and a one year high of $69.35. The stock’s 50 day moving average price is $63.83 and its 200-day moving average price is $64.04.
Lamar Advertising (NASDAQ:LAMR) last posted its earnings results on Thursday, November 3rd. The company reported $0.87 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.85 by $0.02. Lamar Advertising had a net margin of 20.06% and a return on equity of 28.50%. The company had revenue of $387.50 million for the quarter, compared to analyst estimates of $386.68 million. During the same quarter in the prior year, the business posted $0.89 EPS. The firm’s revenue was up 10.5% compared to the same quarter last year. On average, analysts forecast that Lamar Advertising will post $3.07 earnings per share for the current fiscal year.
Several large investors have recently modified their holdings of LAMR. Creative Planning raised its stake in shares of Lamar Advertising by 1.0% in the third quarter. Creative Planning now owns 2,097 shares of the company’s stock valued at $137,000 after buying an additional 20 shares during the last quarter. I.G. Investment Management LTD. bought a new stake in shares of Lamar Advertising during the second quarter valued at about $175,000. CIBC Asset Management Inc bought a new stake in shares of Lamar Advertising during the second quarter valued at about $200,000. Zacks Investment Management bought a new stake in shares of Lamar Advertising during the second quarter valued at about $206,000. Finally, BB&T Securities LLC bought a new stake in shares of Lamar Advertising during the third quarter valued at about $214,000. Institutional investors own 81.43% of the company’s stock.
Lamar Advertising Company Profile
Lamar Advertising Company is an outdoor advertising company in the United States. The Company operates in the advertising segment. The Company sells advertising on billboards, buses, shelters, benches and logo plates. It operates three types of outdoor advertising displays: billboards, logo signs and transit advertising displays.
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