Lazard (NYSE:LAZ) Stock Rating Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Lazard from “hold” to “sell,” while Morgan Stanley also lowered its price target to $40 and maintained an “underweight” rating. Overall, analysts’ consensus remains “hold,” with a $46.50 target price.
• Lazard’s latest quarter fell short of expectations: EPS was $0.36 versus $0.42 expected, and revenue was $805 million versus an estimated $844.23 million. EPS also declined from $0.56 a year earlier, despite 8.8% year-over-year revenue growth.
• Shares opened at $37.23, near the lower end of their 12-month range of $34.13 to $58.75. The company continues to offer a quarterly dividend of $0.50 per share, while management points to positive forward indicators and expects its Campbell Lutyens combination to support future growth.

Lazard (NYSE:LAZ - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday, Wall Street Zen reports.

LAZ has been the topic of a number of other reports. Morgan Stanley lowered their price target on shares of Lazard from $41.00 to $40.00 and set an "underweight" rating on the stock in a report on Friday. Zacks Research upgraded Lazard from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. Weiss Ratings cut Lazard from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, July 29th. Keefe, Bruyette & Woods lowered their price target on Lazard from $44.00 to $42.00 and set a "market perform" rating on the stock in a report on Friday, July 24th. Finally, Capital One Financial set a $38.00 target price on shares of Lazard in a report on Tuesday, October 6th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $46.50.

Lazard Stock Performance

Shares of LAZ opened at $37.23 on Friday. The stock has a market capitalization of $4.12 billion, a P/E ratio of 21.94, a price-to-earnings-growth ratio of 1.24 and a beta of 1.47. The company has a current ratio of 2.66, a quick ratio of 2.84 and a debt-to-equity ratio of 1.80. The firm's fifty day simple moving average is $39.31 and its two-hundred day simple moving average is $42.93. Lazard has a 12 month low of $34.13 and a 12 month 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 the consensus estimate of $0.42 by ($0.06). Lazard had a return on equity of 20.76% and a net margin of 5.55%. The company had revenue of $805.00 million for the quarter, compared to analyst estimates of $844.23 million. During the same period last year, the business earned $0.56 EPS. The business's quarterly revenue was up 8.8% compared to the same quarter last year. As a group, analysts predict that Lazard will post 1.93 EPS for the current year.

Insider Buying and Selling

In other news, CEO Peter Orszag sold 125,000 shares of Lazard stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $43.52, for a total transaction of $5,440,000.00. Following the transaction, the chief executive officer owned 260,942 shares in the company, valued at $11,356,195.84. The trade was a 32.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.95% of the company's stock.

Institutional Investors Weigh In On Lazard

A number of hedge funds have recently bought and sold shares of the stock. Pinnacle Associates Ltd. increased its holdings in shares of Lazard by 60.6% in the 3rd quarter. Pinnacle Associates Ltd. now owns 12,526 shares of the asset manager's stock valued at $454,000 after acquiring an additional 4,725 shares during the period. Counterpoint Mutual Funds LLC purchased a new position in Lazard during the third quarter worth about $586,000. TD Waterhouse Canada Inc. increased its holdings in shares of Lazard by 2.5% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 13,129 shares of the asset manager's stock worth $478,000 after buying an additional 320 shares during the last quarter. GAMMA Investing LLC lifted its holdings in shares of Lazard by 37.2% during the 3rd quarter. GAMMA Investing LLC now owns 1,872 shares of the asset manager's stock valued at $68,000 after acquiring an additional 508 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its stake in shares of Lazard by 251.6% during the third quarter. Farther Finance Advisors LLC now owns 2,500 shares of the asset manager's stock valued at $91,000 after acquiring an additional 1,789 shares in the last quarter. Institutional investors and hedge funds own 54.80% of the company's stock.

Lazard News Roundup

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard plans to complete the closure of Campbell Lutyens in early November and expects the combined business to generate approximately $500 million of revenue in 2027. The transaction could strengthen Lazard’s private-capital and fundraising capabilities, although execution and integration remain important. Campbell Lutyens transaction
• Positive Sentiment: Lazard declared its regular quarterly dividend of $0.50 per share, equivalent to $2.00 annually and a yield of roughly 5.3% based on the cited share price. The dividend is payable November 13 to shareholders of record November 2. Lazard quarterly results and dividend
• Neutral Sentiment: Management said forward indicators were “really positive,” offering some support for a recovery in deal activity and future revenue. However, investors appear focused on whether that pipeline can translate into stronger near-term profitability. Lazard CEO comments
• Neutral Sentiment: Reports on changes to two key leadership roles add a governance and execution consideration for investors, though the immediate financial impact is unclear. Leadership changes
• Neutral Sentiment: Lazard Global Total Return and Income Fund NYSE: LGI, a separate closed-end fund, announced a $0.15340 monthly distribution payable November 24. This does not directly represent a dividend change for Lazard, Inc. (LAZ). LGI monthly distribution
• Negative Sentiment: Third-quarter adjusted EPS was $0.36, below the $0.42 consensus estimate, while adjusted revenue of $805 million missed expectations of approximately $844 million. EPS also fell from $0.56 a year earlier, deepening concerns about margin pressure and limited deal pull-forwards. Third-quarter earnings release
• Negative Sentiment: Morgan Stanley lowered its price target from $41 to $40 and maintained an “underweight” rating, signaling limited confidence in Lazard’s near-term earnings outlook despite the target remaining above the cited share price.

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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