Analysts’ Recent Ratings Updates for Legg Mason (LM)

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A number of firms have modified their ratings and price targets on shares of Legg Mason (NYSE: LM) recently:

  • 1/16/2019 – Legg Mason was upgraded by analysts at ValuEngine from a “strong sell” rating to a “sell” rating.
  • 1/14/2019 – Legg Mason was downgraded by analysts at Bank of America Corp from a “hold” rating to an “underperform” rating. They now have a $30.50 price target on the stock.
  • 1/11/2019 – Legg Mason was upgraded by analysts at Bank of America Corp from an “underperform” rating to a “neutral” rating. They now have a $29.00 price target on the stock, down previously from $30.00.
  • 1/10/2019 – Legg Mason was downgraded by analysts at Deutsche Bank AG from a “buy” rating to a “hold” rating. They now have a $27.00 price target on the stock, down previously from $31.00.
  • 12/31/2018 – Legg Mason was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Shares of Legg Mason have underperformed the industry over the past six months. However, the company displayed an impressive earnings surprise history, beating the Zacks Consensus Estimate in three of the trailing four quarters. Legg Mason’s strategic acquisitions over the last few years are anticipated to boost top-line growth. Also, Legg Mason’s cost control measures will provide support to its financials. Further, the company's focus on expanding product offerings for its customers bode well for the long-term. However, continued equity assets under management (AUM) outflows remain major concern for the company. This may make it difficult to achieve steady overall net inflows.”
  • 12/11/2018 – Legg Mason was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Shares of Legg Mason have underperformed the industry over the past six months. However, the company displayed an impressive earnings surprise history, beating the Zacks Consensus Estimate in three of the trailing four quarters. Legg Mason’s strategic acquisitions over the last few years are anticipated to boost top-line growth. Also, Legg Mason’s cost control measures will provide support to its financials. Further, the company's focus on expanding product offerings for its customers bode well for the long-term. However, continued equity assets under management (AUM) outflows remain major concern for the company. This may make it difficult to achieve steady overall net inflows. Further, cyclical and secular pressures are likely to negatively affect its results.”

LM stock traded up $0.63 during midday trading on Monday, reaching $29.09. 753,166 shares of the company’s stock traded hands, compared to its average volume of 811,868. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.77 and a quick ratio of 1.27. Legg Mason Inc has a 52 week low of $23.25 and a 52 week high of $47.13. The stock has a market capitalization of $2.49 billion, a price-to-earnings ratio of 7.82, a PEG ratio of 0.65 and a beta of 1.60.

Legg Mason (NYSE:LM) last issued its earnings results on Wednesday, October 24th. The asset manager reported $0.82 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.83 by ($0.01). Legg Mason had a net margin of 11.81% and a return on equity of 8.03%. The business had revenue of $758.43 million for the quarter, compared to the consensus estimate of $755.29 million. Equities research analysts anticipate that Legg Mason Inc will post 2.95 EPS for the current year.

The company also recently declared a quarterly dividend, which was paid on Monday, January 14th. Stockholders of record on Wednesday, December 19th were issued a $0.34 dividend. The ex-dividend date of this dividend was Tuesday, December 18th. This represents a $1.36 annualized dividend and a dividend yield of 4.68%. Legg Mason’s payout ratio is currently 36.56%.

Several institutional investors have recently added to or reduced their stakes in LM. Cornerstone Advisors Inc. increased its holdings in shares of Legg Mason by 113.0% in the third quarter. Cornerstone Advisors Inc. now owns 1,127 shares of the asset manager’s stock worth $35,000 after purchasing an additional 598 shares during the period. Cerebellum GP LLC bought a new position in shares of Legg Mason in the fourth quarter worth $46,000. Quantbot Technologies LP bought a new position in shares of Legg Mason in the third quarter worth $131,000. Sageworth Trust Co increased its holdings in shares of Legg Mason by 608.3% in the third quarter. Sageworth Trust Co now owns 4,250 shares of the asset manager’s stock worth $133,000 after purchasing an additional 3,650 shares during the period. Finally, Westbourne Investment Advisors Inc. bought a new position in shares of Legg Mason in the third quarter worth $137,000. 83.92% of the stock is currently owned by hedge funds and other institutional investors.

Legg Mason, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides investment management and related services to company-sponsored mutual funds and other investment vehicles including pension funds, foundations, endowments, sovereign wealth funds, insurance companies, private banks, family offices, individuals, as well as to global, institutional, and retail clients.

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