Lazard (NYSE:LAZ) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Lazard from “hold” to “strong sell,” while the broader analyst consensus remains “hold” with an average price target of $46.50.
• Lazard’s latest quarterly results missed expectations, with earnings per share of $0.36 versus the $0.42 consensus and revenue of $804.62 million versus $844.23 million expected.
• LAZ shares opened at $38.45, near their 52-week low of $34.13 and below the 200-day moving average of $44.44; CEO Peter Orszag also sold 125,000 shares under a pre-arranged trading plan.

Lazard (NYSE:LAZ - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday, Zacks reports.

A number of other research firms have also recently commented on LAZ. The Goldman Sachs Group set a $35.00 price target on Lazard in a report on Thursday, October 22nd. Capital One Financial set a $38.00 price objective on Lazard in a research report on Tuesday, October 6th. Morgan Stanley reduced their target price on Lazard from $41.00 to $40.00 and set an "underweight" rating for the company in a research note on Friday, October 23rd. Wall Street Zen lowered Lazard from a "hold" rating to a "sell" rating in a report on Saturday, October 24th. Finally, UBS Group decreased their target price on Lazard from $44.00 to $40.00 and set a "neutral" rating on the stock in a report on Wednesday, October 7th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $46.50.

Lazard Stock Performance

Shares of LAZ stock opened at $38.45 on Tuesday. The stock has a market cap of $4.25 billion, a P/E ratio of 23.31, a P/E/G ratio of 1.24 and a beta of 1.47. The company has a debt-to-equity ratio of 1.80, a current ratio of 2.66 and a quick ratio of 2.84. The company has a fifty day moving average price of $38.93 and a two-hundred day moving average price of $44.44. Lazard has a one year low of $34.13 and a one year high of $58.75.

Lazard (NYSE:LAZ - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The asset manager reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.06). The firm had revenue of $804.62 million during the quarter, compared to the consensus estimate of $844.23 million. Lazard had a net margin of 5.55% and a return on equity of 20.76%. The business's revenue was up 8.8% on a year-over-year basis. During the same period last year, the business earned $0.56 EPS. As a group, equities analysts predict that Lazard will post 1.34 EPS for the current year.

Insider Activity

In other news, CEO Peter Orszag sold 125,000 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $43.52, for a total value of $5,440,000.00. Following the transaction, the chief executive officer owned 260,942 shares of the company's stock, valued at approximately $11,356,195.84. This represents a 32.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.95% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lazard

A number of large investors have recently made changes to their positions in the company. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its position in shares of Lazard by 16.1% during the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 7,200 shares of the asset manager's stock valued at $261,000 after acquiring an additional 1,000 shares during the period. Great Lakes Retirement Inc. grew its holdings in shares of Lazard by 10.8% during the 3rd quarter. Great Lakes Retirement Inc. now owns 30,663 shares of the asset manager's stock worth $1,111,000 after purchasing an additional 2,987 shares in the last quarter. Pinnacle Associates Ltd. increased its position in shares of Lazard by 60.6% in the third quarter. Pinnacle Associates Ltd. now owns 12,526 shares of the asset manager's stock worth $454,000 after purchasing an additional 4,725 shares during the period. Counterpoint Mutual Funds LLC bought a new position in shares of Lazard in the third quarter worth $586,000. Finally, TD Waterhouse Canada Inc. increased its position in shares of Lazard by 2.5% in the third quarter. TD Waterhouse Canada Inc. now owns 13,129 shares of the asset manager's stock worth $478,000 after purchasing an additional 320 shares during the period. Institutional investors own 54.80% of the company's stock.

About Lazard

Lazard, Ltd. is a global financial advisory and asset management firm that serves corporations, financial institutions, governments, sovereign entities and individuals. Its Financial Advisory business provides advice on mergers and acquisitions, strategic matters, capital structure, restructuring, capital raising and other complex financial transactions.

Through its Asset Management business, Lazard offers investment strategies across equities, fixed income, private markets, alternatives and multi-asset portfolios.

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