Freemont Management S.A. Boosts Holdings in Lazard, Inc. $LAZ

Key Points

• Freemont Management S.A. sharply increased its stake in Lazard by 197.2% in the fourth quarter, buying 77,100 more shares and bringing its total holdings to 116,205 shares worth about $5.64 million.
• Lazard’s latest earnings missed analyst expectations, reporting $0.42 EPS versus $0.52 expected, while revenue came in at $672.98 million, below estimates but still up 16.8% year over year.
• The company also declared a quarterly dividend of $0.50 per share, implying an annualized yield of 4.4%, even as insiders have sold shares and analysts currently hold a consensus rating of Hold.

Freemont Management S.A. increased its holdings in Lazard, Inc. (NYSE:LAZ - Free Report) by 197.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 116,205 shares of the asset manager's stock after buying an additional 77,100 shares during the quarter. Freemont Management S.A. owned 0.10% of Lazard worth $5,643,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Teza Capital Management LLC boosted its holdings in shares of Lazard by 2.4% in the second quarter. Teza Capital Management LLC now owns 8,059 shares of the asset manager's stock worth $387,000 after buying an additional 187 shares during the last quarter. Sound Income Strategies LLC boosted its holdings in shares of Lazard by 59.5% in the fourth quarter. Sound Income Strategies LLC now owns 590 shares of the asset manager's stock worth $31,000 after buying an additional 220 shares during the last quarter. IFP Advisors Inc lifted its holdings in Lazard by 53.5% during the third quarter. IFP Advisors Inc now owns 643 shares of the asset manager's stock valued at $34,000 after purchasing an additional 224 shares in the last quarter. Oliver Luxxe Assets LLC lifted its holdings in Lazard by 0.5% during the fourth quarter. Oliver Luxxe Assets LLC now owns 47,628 shares of the asset manager's stock valued at $2,313,000 after purchasing an additional 235 shares in the last quarter. Finally, AMG National Trust Bank lifted its holdings in Lazard by 0.6% during the third quarter. AMG National Trust Bank now owns 44,214 shares of the asset manager's stock valued at $2,334,000 after purchasing an additional 267 shares in the last quarter. Hedge funds and other institutional investors own 54.80% of the company's stock.

Lazard Price Performance

Shares of NYSE:LAZ opened at $45.28 on Thursday. The company has a debt-to-equity ratio of 1.94, a quick ratio of 3.51 and a current ratio of 3.51. The firm has a fifty day moving average price of $44.58 and a 200 day moving average price of $48.80. Lazard, Inc. has a fifty-two week low of $38.67 and a fifty-two week high of $58.75. The firm has a market cap of $5.06 billion, a price-to-earnings ratio of 17.90, a P/E/G ratio of 0.49 and a beta of 1.44.

Lazard (NYSE:LAZ - Get Free Report) last issued its earnings results on Friday, May 1st. The asset manager reported $0.42 earnings per share for the quarter, missing analysts' consensus estimates of $0.52 by ($0.10). Lazard had a return on equity of 29.30% and a net margin of 8.47%.The company had revenue of $672.98 million for the quarter, compared to the consensus estimate of $707.42 million. During the same quarter in the prior year, the company posted $0.56 EPS. Lazard's revenue was up 16.8% compared to the same quarter last year. As a group, sell-side analysts expect that Lazard, Inc. will post 2.85 earnings per share for the current fiscal year.

Lazard Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Monday, May 11th will be given a dividend of $0.50 per share. The ex-dividend date is Monday, May 11th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 4.4%. Lazard's dividend payout ratio is currently 79.05%.

Insiders Place Their Bets

In related news, CEO Peter Richard Orszag sold 69,170 shares of the company's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $40.76, for a total transaction of $2,819,369.20. Following the completion of the transaction, the chief executive officer owned 210,942 shares in the company, valued at approximately $8,597,995.92. This represents a 24.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Christopher Hogbin sold 7,885 shares of the company's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $40.37, for a total transaction of $318,317.45. Following the transaction, the chief executive officer owned 15,773 shares of the company's stock, valued at approximately $636,756.01. This represents a 33.33% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 80,999 shares of company stock valued at $3,292,962. 0.95% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several brokerages have weighed in on LAZ. Citizens Jmp lowered their price target on shares of Lazard from $65.00 to $60.00 and set a "market outperform" rating on the stock in a report on Friday, April 10th. UBS Group lowered their price target on shares of Lazard from $45.00 to $44.00 and set a "neutral" rating on the stock in a report on Monday, May 4th. Keefe, Bruyette & Woods lifted their price target on shares of Lazard from $47.00 to $49.00 and gave the company a "market perform" rating in a report on Monday, May 4th. Morgan Stanley lowered their price target on shares of Lazard from $59.00 to $52.00 and set an "underweight" rating on the stock in a report on Thursday, April 9th. Finally, Wall Street Zen downgraded shares of Lazard from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $52.56.

About Lazard

Lazard Ltd. NYSE: LAZ is a leading global financial advisory and asset management firm, offering a comprehensive suite of services to corporations, governments and individuals. Founded in 1848, Lazard has built a reputation for providing independent advice and innovative solutions in complex financial transactions. The firm is publicly traded on the New York Stock Exchange under the ticker symbol LAZ and maintains its headquarters in Hamilton, Bermuda.

In its Financial Advisory segment, Lazard assists clients with mergers and acquisitions, restructurings, capital structure optimization and strategic planning.

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