Legg Mason (NYSE:LM) posted its earnings results on Thursday. The asset manager reported $0.75 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.72 by $0.03, Bloomberg Earnings reports. Legg Mason had a positive return on equity of 7.23% and a negative net margin of 1.72%. The firm had revenue of $705.36 million for the quarter, compared to analysts’ expectations of $708.70 million. During the same period in the previous year, the firm earned $0.75 earnings per share. The business’s revenue was down 5.7% compared to the same quarter last year.
LM stock traded up $0.90 during midday trading on Friday, hitting $37.98. The stock had a trading volume of 1,330,481 shares, compared to its average volume of 606,827. The stock has a market cap of $3.21 billion, a price-to-earnings ratio of 12.49, a price-to-earnings-growth ratio of 0.59 and a beta of 1.49. The stock’s 50-day moving average price is $37.74. Legg Mason has a 52-week low of $23.25 and a 52-week high of $38.94. The company has a current ratio of 1.82, a quick ratio of 1.36 and a debt-to-equity ratio of 0.53.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 28th. Investors of record on Thursday, October 10th will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 4.21%. Legg Mason’s payout ratio is 52.63%.
In related news, insider Joseph A. Sullivan sold 26,470 shares of the company’s stock in a transaction on Thursday, May 16th. The stock was sold at an average price of $36.18, for a total value of $957,684.60. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CAO Ursula Schliessler sold 3,608 shares of the business’s stock in a transaction on Thursday, May 16th. The stock was sold at an average price of $36.03, for a total value of $129,996.24. Following the completion of the sale, the chief accounting officer now directly owns 27,495 shares in the company, valued at $990,644.85. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 63,378 shares of company stock worth $2,292,180. 8.08% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in the business. Clarkston Capital Partners LLC boosted its holdings in Legg Mason by 3.5% in the first quarter. Clarkston Capital Partners LLC now owns 4,824,985 shares of the asset manager’s stock worth $132,060,000 after acquiring an additional 164,850 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Legg Mason by 0.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,075,993 shares of the asset manager’s stock worth $103,979,000 after acquiring an additional 18,559 shares in the last quarter. FMR LLC lifted its holdings in shares of Legg Mason by 5.6% during the fourth quarter. FMR LLC now owns 1,295,605 shares of the asset manager’s stock valued at $33,051,000 after purchasing an additional 68,895 shares in the last quarter. Robeco Institutional Asset Management B.V. lifted its holdings in shares of Legg Mason by 18.7% during the first quarter. Robeco Institutional Asset Management B.V. now owns 1,137,694 shares of the asset manager’s stock valued at $31,141,000 after purchasing an additional 179,268 shares in the last quarter. Finally, Fiera Capital Corp lifted its holdings in shares of Legg Mason by 0.6% during the first quarter. Fiera Capital Corp now owns 1,052,995 shares of the asset manager’s stock valued at $28,820,000 after purchasing an additional 5,872 shares in the last quarter. 84.05% of the stock is currently owned by institutional investors and hedge funds.
Several equities analysts have recently issued reports on the company. Zacks Investment Research raised Legg Mason from a “hold” rating to a “buy” rating and set a $40.00 target price on the stock in a research note on Monday, May 20th. Royal Bank of Canada boosted their target price on Legg Mason to $39.00 and gave the company an “in-line” rating in a research note on Tuesday, May 14th. Gabelli reissued a “buy” rating on shares of Legg Mason in a research note on Wednesday, April 10th. Morgan Stanley set a $27.00 price target on Legg Mason and gave the stock a “sell” rating in a research note on Thursday, May 16th. Finally, ValuEngine cut Legg Mason from a “hold” rating to a “sell” rating in a research note on Thursday. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and five have assigned a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $33.22.
About Legg Mason
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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