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.”
Several other equities research analysts have also recently weighed in on the company. Keefe, Bruyette & Woods reaffirmed an outperform rating and issued a $4.00 price target on shares of Legg Mason in a research note on Monday, September 12th. Morgan Stanley reaffirmed a hold rating on shares of Legg Mason in a research note on Friday, September 9th. Jefferies Group reaffirmed a buy rating on shares of Legg Mason in a research note on Thursday, August 11th. Barclays PLC reaffirmed an overweight rating and issued a $41.00 price target on shares of Legg Mason in a research note on Sunday, July 31st. Finally, Citigroup Inc. upped their price target on Legg Mason from $45.00 to $50.00 and gave the stock a buy rating in a research note on Thursday, July 28th. 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 stock. The stock currently has an average rating of Buy and an average target price of $37.20.
Legg Mason (NYSE:LM) opened at 32.96 on Tuesday. The firm’s 50 day moving average price is $34.09 and its 200-day moving average price is $32.97. The company’s market capitalization is $3.42 billion. Legg Mason has a 12-month low of $24.93 and a 12-month high of $46.41.
Legg Mason (NYSE:LM) last posted its earnings results on Wednesday, July 27th. The company reported $0.31 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.06. Legg Mason had a positive return on equity of 7.06% and a negative net margin of 3.25%. The firm had revenue of $700.20 million for the quarter, compared to analysts’ expectations of $681.99 million. During the same period in the previous year, the firm earned $1.14 earnings per share. The business’s revenue was down 1.2% compared to the same quarter last year. On average, equities analysts anticipate that Legg Mason will post $2.31 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 24th. Investors of record on Thursday, October 6th will be given a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 2.67%. The ex-dividend date of this dividend is Tuesday, October 4th. Legg Mason’s dividend payout ratio (DPR) is presently -103.53%.
A number of hedge funds have recently bought and sold shares of LM. Howard Hughes Medical Institute boosted its stake in Legg Mason by 2.0% in the first quarter. Howard Hughes Medical Institute now owns 3,379 shares of the company’s stock worth $117,000 after buying an additional 67 shares during the period. Envestnet Asset Management Inc. boosted its stake in Legg Mason by 36.0% in the first quarter. Envestnet Asset Management Inc. now owns 3,673 shares of the company’s stock worth $127,000 after buying an additional 972 shares during the period. Seven Eight Capital LLC purchased a new stake in Legg Mason during the first quarter worth approximately $180,000. Parametrica Management Ltd purchased a new stake in Legg Mason during the first quarter worth approximately $213,000. Finally, Ironwood Investment Counsel LLC purchased a new stake in Legg Mason during the first quarter worth approximately $227,000. 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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