Gabelli Comments on Legg Mason, Inc.’s FY2018 Earnings (LM)
Legg Mason, Inc. (NYSE:LM) – Research analysts at Gabelli lowered their FY2018 EPS estimates for Legg Mason in a research report issued to clients and investors on Monday. Gabelli analyst M. Sykes now forecasts that the asset manager will post earnings per share of $2.62 for the year, down from their previous estimate of $2.80. Gabelli also issued estimates for Legg Mason’s FY2019 earnings at $3.43 EPS.
Several other research firms have also weighed in on LM. BidaskClub upgraded shares of Legg Mason from a “buy” rating to a “strong-buy” rating in a report on Wednesday, June 21st. Credit Suisse Group reiterated a “buy” rating and issued a $41.00 target price on shares of Legg Mason in a report on Friday, June 16th. Zacks Investment Research lowered shares of Legg Mason from a “hold” rating to a “sell” rating in a report on Tuesday, June 13th. Morgan Stanley reiterated an “equal weight” rating and issued a $38.00 target price (up from $35.00) on shares of Legg Mason in a report on Monday. Finally, ValuEngine upgraded shares of Legg Mason from a “hold” rating to a “buy” rating in a report on Saturday, June 10th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and nine have issued a buy rating to the company. Legg Mason has an average rating of “Buy” and a consensus price target of $40.78.
Shares of Legg Mason (LM) traded down 1.32% during mid-day trading on Tuesday, reaching $38.74. 466,247 shares of the company’s stock traded hands. The firm has a market cap of $3.71 billion, a price-to-earnings ratio of 17.77 and a beta of 2.19. The company’s 50 day moving average is $38.48 and its 200-day moving average is $35.71. Legg Mason has a 52 week low of $28.10 and a 52 week high of $40.82.
Legg Mason (NYSE:LM) last announced its earnings results on Wednesday, April 26th. The asset manager reported $0.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.29. Legg Mason had a net margin of 7.87% and a return on equity of 6.71%. The company had revenue of $723.13 million for the quarter, compared to the consensus estimate of $701.50 million. During the same period in the previous year, the business earned ($0.15) EPS. The company’s revenue was up 16.7% on a year-over-year basis.
Large investors have recently modified their holdings of the stock. Atria Investments LLC increased its position in shares of Legg Mason by 14.7% in the second quarter. Atria Investments LLC now owns 7,222 shares of the asset manager’s stock worth $276,000 after buying an additional 923 shares during the period. Capstone Asset Management Co. increased its position in shares of Legg Mason by 3.9% in the second quarter. Capstone Asset Management Co. now owns 12,555 shares of the asset manager’s stock worth $479,000 after buying an additional 470 shares during the period. Boston Common Asset Management LLC purchased a new position in shares of Legg Mason during the first quarter worth approximately $805,000. North Star Asset Management Inc. purchased a new position in shares of Legg Mason during the first quarter worth approximately $234,000. Finally, FNY Partners Fund LP purchased a new position in shares of Legg Mason during the first quarter worth approximately $109,000. Hedge funds and other institutional investors own 79.15% of the company’s stock.
In other Legg Mason news, CAO Ursula Schliessler sold 1,745 shares of Legg Mason stock in a transaction on Monday, May 1st. The shares were sold at an average price of $37.39, for a total value of $65,245.55. Following the sale, the chief accounting officer now directly owns 14,445 shares in the company, valued at approximately $540,098.55. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Terence Johnson sold 8,777 shares of Legg Mason stock in a transaction on Monday, May 1st. The shares were sold at an average price of $37.24, for a total transaction of $326,855.48. Following the completion of the sale, the insider now owns 100,415 shares in the company, valued at $3,739,454.60. The disclosure for this sale can be found here. Insiders sold a total of 4,243,022 shares of company stock worth $163,047,076 over the last quarter. Company insiders own 12.70% of the company’s stock.
The firm also recently declared a quarterly dividend, which was paid on Monday, July 10th. Shareholders of record on Tuesday, June 13th were paid a $0.28 dividend. This is a positive change from Legg Mason’s previous quarterly dividend of $0.22. This represents a $1.12 annualized dividend and a yield of 2.85%. The ex-dividend date of this dividend was Friday, June 9th. Legg Mason’s payout ratio is presently 50.91%.
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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