Legg Mason, Inc. (LM) Rating Lowered to Hold at Zacks Investment Research
Legg Mason, Inc. (NYSE:LM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Friday.
According to Zacks, “Shares of Legg Mason have outperformed the industry year to date. The company has displayed a decent earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Legg Mason’s second-quarter fiscal 2018 results reflected top-line strength and steady assets under management (AUM), partially offset by higher expenses. The company’s strategic acquisitions over the last few years, are anticipated to boost top-line growth. Further, its steady capital deployment activities will continue enhancing shareholders’ value. However, continued equity AUM outflows in the coming years can be a headwind. Also, escalating compensation expenses may hinder the company's bottom-line growth.”
Several other research analysts have also weighed in on the company. Deutsche Bank AG started coverage on Legg Mason in a research report on Tuesday, October 17th. They issued a “buy” rating and a $44.00 target price on the stock. Royal Bank Of Canada set a $47.00 target price on Legg Mason and gave the stock a “buy” rating in a research report on Wednesday, October 18th. Keefe, Bruyette & Woods reaffirmed a “buy” rating and issued a $47.00 target price on shares of Legg Mason in a research report on Friday, September 29th. Jefferies Group LLC reaffirmed a “buy” rating and issued a $49.00 target price on shares of Legg Mason in a research report on Sunday, August 20th. Finally, Credit Suisse Group increased their target price on Legg Mason from $48.00 to $49.00 and gave the stock an “outperform” rating in a research report on Thursday, October 26th. Three investment analysts have rated the stock with a sell rating, four have issued a hold rating and six have issued a buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of C$43.10.
Legg Mason (LM) traded up C$0.52 during mid-day trading on Friday, hitting C$38.06. The stock had a trading volume of 1,160,000 shares, compared to its average volume of 993,691. Legg Mason has a 1-year low of C$29.71 and a 1-year high of C$42.08. The company has a quick ratio of 1.93, a current ratio of 2.74 and a debt-to-equity ratio of 0.56. The firm has a market capitalization of $3,499.16, a PE ratio of 13.26, a price-to-earnings-growth ratio of 0.89 and a beta of 2.27.
Legg Mason (NYSE:LM) last posted its quarterly earnings data on Wednesday, October 25th. The company reported C$0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of C$0.69 by C$0.10. Legg Mason had a return on equity of 7.15% and a net margin of 8.46%. The business had revenue of C$768.30 million for the quarter, compared to analysts’ expectations of C$739.47 million. During the same quarter last year, the firm earned $0.63 earnings per share. The business’s revenue was up 2.7% on a year-over-year basis. sell-side analysts forecast that Legg Mason will post 2.84 EPS for the current year.
Large investors have recently added to or reduced their stakes in the business. Zurcher Kantonalbank Zurich Cantonalbank raised its position in Legg Mason by 10.1% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,193 shares of the company’s stock valued at $122,000 after purchasing an additional 294 shares during the period. QCM Cayman Ltd. purchased a new position in Legg Mason in the second quarter valued at about $200,000. Gotham Asset Management LLC purchased a new position in Legg Mason in the second quarter valued at about $212,000. Institute for Wealth Management LLC. purchased a new position in Legg Mason in the second quarter valued at about $224,000. Finally, Raymond James Financial Services Advisors Inc. purchased a new position in Legg Mason in the third quarter valued at about $224,000. 83.47% of the stock is currently owned by institutional investors.
About Legg Mason
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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