Jefferies Financial Group Downgrades Legal & General Group (LON:LGEN) to Underperform

Key Points

• Jefferies downgraded Legal & General to an Underperform and set a GBX 185 target, implying roughly a 25.44% downside from the prior close.
• Analyst views are mixed but the consensus is a Hold with an average price target of GBX 250.71; broker targets range widely from GBX 185 to GBX 308 (two Buys, three Holds, two Sells).
• Insiders have been buying small stakes (e.g., Laura Wade‑Gery 988 shares, Mark Jordy 1,040 shares), while the stock trades around GBX 248 with a market cap of £13.93bn and a P/E of 25.48.

Legal & General Group (LON:LGEN - Get Free Report) was downgraded by stock analysts at Jefferies Financial Group to an "underperform" rating in a note issued to investors on Tuesday,Digital Look reports. They currently have a GBX 185 target price on the financial services provider's stock. Jefferies Financial Group's price objective indicates a potential downside of 25.44% from the stock's previous close.

A number of other equities research analysts also recently weighed in on the stock. Citigroup raised their price target on shares of Legal & General Group from GBX 243 to GBX 249 and gave the company a "neutral" rating in a research note on Tuesday, March 24th. The Goldman Sachs Group raised their price target on shares of Legal & General Group from GBX 249 to GBX 263 and gave the company a "neutral" rating in a research note on Wednesday, January 21st. Royal Bank Of Canada raised their price target on shares of Legal & General Group from GBX 205 to GBX 220 and gave the company an "underperform" rating in a research note on Monday, March 23rd. Finally, Berenberg Bank restated a "buy" rating and issued a GBX 308 price target on shares of Legal & General Group in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of GBX 250.71.

Legal & General Group Stock Down 2.7%

LGEN stock opened at GBX 248.14 on Tuesday. Legal & General Group has a 12 month low of GBX 217.20 and a 12 month high of GBX 279.50. The firm has a market cap of £13.93 billion, a P/E ratio of 25.48, a P/E/G ratio of 2.34 and a beta of 0.81. The company's 50-day moving average price is GBX 255.54 and its two-hundred day moving average price is GBX 254.18.

Legal & General Group (LON:LGEN - Get Free Report) last released its earnings results on Wednesday, March 11th. The financial services provider reported GBX 831 EPS for the quarter. Legal & General Group had a net margin of 0.91% and a return on equity of 15.89%. Equities analysts predict that Legal & General Group will post 24.2376446 EPS for the current year.

Legal & General Group declared that its Board of Directors has initiated a share repurchase plan on Wednesday, March 11th that allows the company to repurchase 0 shares. This repurchase authorization allows the financial services provider to buy shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Legal & General Group news, insider Laura Wade-Gery acquired 988 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was acquired at an average price of GBX 253 per share, for a total transaction of £2,499.64. Also, insider Mark Jordy acquired 1,040 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was acquired at an average price of GBX 253 per share, with a total value of £2,631.20. Over the last quarter, insiders have purchased 6,998 shares of company stock worth $1,817,940 and have sold 410,095 shares worth $106,048,563. Corporate insiders own 0.59% of the company's stock.

Legal & General Group Company Profile

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in Legal & General Retirement Institutional (LGRI), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Retail segments. The LGRI segment offers annuity contracts with guaranteed income for a specified time; and longevity insurance products. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets.

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