Legg Mason Inc. (NYSE:LM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The firm presently has a $38.00 target price on the stock. Zacks Investment Research’s price target suggests a potential upside of 11.80% from the company’s previous close.
According to Zacks, “Legg Mason’s estimates have been increasing lately ahead of its second-quarter fiscal 2017 earnings release. The company’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, stringent regulatory landscape and the current cyclical and secular pressures in the asset management business remain concerns for Legg Mason.”
Several other research firms have also recently commented on LM. Morgan Stanley restated a “hold” rating on shares of Legg Mason in a report on Friday, September 9th. Keefe, Bruyette & Woods restated an “outperform” rating and issued a $4.00 price target on shares of Legg Mason in a report on Monday, September 12th. Barclays PLC restated an “overweight” rating and issued a $41.00 price target on shares of Legg Mason in a report on Sunday, July 31st. Jefferies Group restated a “buy” rating on shares of Legg Mason in a report on Thursday, August 11th. Finally, Wells Fargo & Co. restated a “buy” rating on shares of Legg Mason in a report on Monday, July 18th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and eight have assigned a buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $37.70.
Shares of Legg Mason (NYSE:LM) opened at 33.99 on Friday. Legg Mason has a 1-year low of $24.93 and a 1-year high of $46.41. The company’s 50 day moving average is $34.06 and its 200-day moving average is $32.98. The stock’s market capitalization is $3.52 billion.
Legg Mason (NYSE:LM) last posted its quarterly earnings data on Wednesday, July 27th. The company reported $0.31 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.06. The firm earned $700.20 million during the quarter, compared to analysts’ expectations of $681.99 million. Legg Mason had a positive return on equity of 7.06% and a negative net margin of 3.25%. The firm’s quarterly revenue was down 1.2% compared to the same quarter last year. During the same quarter last year, the business posted $1.14 EPS. Equities analysts anticipate that Legg Mason will post $2.31 earnings per share for the current fiscal year.
The business also recently declared 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 annualized dividend and a yield of 2.59%. The ex-dividend date is Tuesday, October 4th. Legg Mason’s dividend payout ratio (DPR) is presently -103.53%.
Institutional investors have recently made changes to their positions in the stock. CIBC Asset Management Inc raised its position in shares of Legg Mason by 0.9% in the second quarter. CIBC Asset Management Inc now owns 11,545 shares of the company’s stock worth $340,000 after buying an additional 104 shares during the last quarter. Gyroscope Capital Management Group LLC increased its stake in shares of Legg Mason by 0.6% in the second quarter. Gyroscope Capital Management Group LLC now owns 18,329 shares of the company’s stock worth $541,000 after buying an additional 116 shares during the period. World Asset Management Inc increased its stake in shares of Legg Mason by 1.9% in the second quarter. World Asset Management Inc now owns 11,267 shares of the company’s stock worth $332,000 after buying an additional 211 shares during the period. Mutual of America Capital Management LLC increased its stake in shares of Legg Mason by 3.5% in the second quarter. Mutual of America Capital Management LLC now owns 12,220 shares of the company’s stock worth $360,000 after buying an additional 411 shares during the period. Finally, BOKF NA increased its stake in shares of Legg Mason by 1.6% in the second quarter. BOKF NA now owns 26,278 shares of the company’s stock worth $775,000 after buying an additional 411 shares during the period. 78.66% of the stock is currently owned by institutional investors.
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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