Lamar Advertising Rating Lowered to Neutral at Zacks (LAMR)
Lamar Advertising (NASDAQ:LAMR) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research note issued on Tuesday. They currently have a $55.00 price target on the stock. Zacks‘s price target would indicate a potential upside of 4.34% from the stock’s previous close.
Zacks’ analyst wrote, “We are downgrading our recommendation on Lamar to Neutral from Outperform, due to meek second-quarter results. The company’s net income per share decreased on a year-over-year basis due to loss on debt extinguishment expense. Also, operating income and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined on a year-over-year basis. Nevertheless, Lamar experienced a fall in interest expenses. We believe the company’s REIT conversion move to capitalize on a seemingly more favorable tax environment is a strategic fit for long-term growth. Additionally, the recent buyout of a New Orleans-based advertising company bodes well as it will include REIT-qualified, premium billboard assets in its portfolio. “
A number of other analysts have also recently weighed in on LAMR. Analysts at Evercore Partners reiterated an “overweight” rating on shares of Lamar Advertising in a research note on Wednesday, August 13th. They now have a $57.00 price target on the stock, down previously from $59.00. Separately, analysts at Topeka Capital Markets cut their price target on shares of Lamar Advertising from $65.00 to $62.00 in a research note on Thursday, August 7th. They now have a “buy” rating on the stock. Finally, analysts at Morgan Stanley downgraded shares of Lamar Advertising from an “overweight” rating to an “equal weight” rating in a research note on Wednesday, July 30th. Five research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus target price of $56.69.
Lamar Advertising (NASDAQ:LAMR) traded up 0.44% during mid-day trading on Tuesday, hitting $52.71. The stock had a trading volume of 1,204,646 shares. Lamar Advertising has a 52 week low of $41.57 and a 52 week high of $54.48. The stock’s 50-day moving average is $51.5 and its 200-day moving average is $51.26. The company has a market cap of $5.022 billion and a price-to-earnings ratio of 132.86. Lamar Advertising also was the recipient of a large drop in short interest during the month of August. As of August 15th, there was short interest totalling 7,640,737 shares, a drop of 18.5% from the July 31st total of 9,370,059 shares. Based on an average daily trading volume, of 1,635,610 shares, the short-interest ratio is currently 4.7 days. Approximately 9.6% of the company’s shares are short sold.
Lamar Advertising (NASDAQ:LAMR) last announced its earnings results on Thursday, August 7th. The company reported $0.16 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.39 by $0.23. The company had revenue of $330.40 million for the quarter, compared to the consensus estimate of $333.27 million. During the same quarter last year, the company posted $0.22 earnings per share. Lamar Advertising’s revenue was up .8% compared to the same quarter last year. On average, analysts predict that Lamar Advertising will post $0.88 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, September 30th. Stockholders of record on Monday, September 22nd will be paid a dividend of $0.83 per share. This represents a $3.32 annualized dividend and a dividend yield of 6.30%. The ex-dividend date is Thursday, September 18th.
Lamar Advertising Company is an outdoor advertising company in the United States. The Company operates in the advertising segment.
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