Lazard, Inc. (NYSE:LAZ) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Lazard has a consensus analyst rating of “Hold” from 11 brokers, with an average 12-month price target of about $50.38. The coverage is mixed, with 4 buy ratings, 5 holds, and 2 sells.
• The company’s latest quarterly results were mixed to disappointing: EPS came in at $0.12, well below expectations of $0.34, even though revenue of $786.0 million beat estimates. Management and analysts have also pointed to pressure from higher expenses and weaker advisory results.
• Lazard recently declared a quarterly dividend of $0.50 per share, implying a 4.5% yield. The payout is sizable, but the payout ratio is very high at about 98%, which may limit flexibility.

Lazard, Inc. (NYSE:LAZ - Get Free Report) has earned an average rating of "Hold" from the eleven analysts that are covering the company, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and four have given a buy rating to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $50.3750.

Several research firms have recently issued reports on LAZ. Keefe, Bruyette & Woods cut their price objective on shares of Lazard from $44.00 to $42.00 and set a "market perform" rating on the stock in a report on Friday. Zacks Research raised shares of Lazard from a "strong sell" rating to a "hold" rating in a research report on Monday, July 6th. Argus dropped their target price on shares of Lazard from $63.00 to $52.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. Citizens Jmp cut their price target on shares of Lazard from $65.00 to $60.00 and set a "market outperform" rating on the stock in a research note on Friday, April 10th. Finally, UBS Group reaffirmed a "neutral" rating and issued a $44.00 price target on shares of Lazard in a report on Tuesday, June 9th.

Lazard Stock Up 2.7%

Lazard stock opened at $44.21 on Friday. The business has a fifty day moving average price of $44.24 and a 200-day moving average price of $46.78. Lazard has a 1-year low of $38.67 and a 1-year high of $58.75. The stock has a market capitalization of $4.94 billion, a price-to-earnings ratio of 21.67, a PEG ratio of 0.65 and a beta of 1.43. The company has a debt-to-equity ratio of 1.87, a current ratio of 2.84 and a quick ratio of 3.51.

Lazard (NYSE:LAZ - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The asset manager reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.34 by ($0.22). The business had revenue of $786.02 million during the quarter, compared to analysts' expectations of $736.29 million. Lazard had a net margin of 6.95% and a return on equity of 23.58%. The company's quarterly revenue was up 1.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.52 earnings per share. Equities research analysts forecast that Lazard will post 2.45 EPS for the current fiscal year.

Lazard Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Monday, August 3rd will be given a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend is Monday, August 3rd. Lazard's dividend payout ratio is presently 98.04%.

Lazard News Roundup

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard expanded its buyback plan while continuing to grow Asset Management revenue and assets under management, which supports the long-term capital return and earnings story. LAZ Stock Down as Q2 Earnings Lag on Higher Costs, Expands Buyback Plan
• Positive Sentiment: The company reiterated a long-term revenue target for Lazard Capital and outlined productivity goals, including higher revenue per managing director, suggesting management is focused on improving margins. Lazard targets $10m per MD by 2028 as it reiterates $500m Lazard CL 2027 revenue plan
• Neutral Sentiment: CEO Peter Orszag said AI should make future deal teams “leaner,” reinforcing the firm’s cost-efficiency push, but the impact on near-term results is still uncertain. Lazard CEO Orszag: AI will lead to ‘leaner’ deal teams with more MDs
• Neutral Sentiment: Lazard declared a quarterly dividend, which may appeal to income investors, but it is not a major fresh catalyst for the stock. Lazard earnings report and conference call
• Negative Sentiment: Q2 earnings missed expectations, with EPS of $0.12 versus estimates around $0.34-$0.42, reflecting pressure from weaker Financial Advisory revenue and higher expenses. Lazard (LAZ) Q2 Earnings Miss Estimates
• Negative Sentiment: Profit fell sharply year over year, with reports pointing to a 91% decline in quarterly profit due to a higher tax rate and volatility in the advisory business, which likely weighed on sentiment. Lazard profit plunges on elevated tax rate, financial advisory volatility
• Negative Sentiment: Keefe, Bruyette & Woods cut its price target on LAZ to $42 and kept a market-perform rating, signaling limited near-term upside. Benzinga report on Lazard price target cut

Institutional Trading of Lazard

Several large investors have recently added to or reduced their stakes in the company. Kestra Advisory Services LLC purchased a new position in shares of Lazard in the fourth quarter worth about $26,000. Sound Income Strategies LLC increased its stake 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 acquiring an additional 220 shares during the period. Quest 10 Wealth Builders Inc. purchased a new stake in Lazard in the fourth quarter valued at $32,000. IFP Advisors Inc boosted its holdings in Lazard by 53.5% in 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 during the last quarter. Finally, State of Wyoming acquired a new stake in Lazard during the 2nd quarter worth about $38,000. Hedge funds and other institutional investors own 54.80% of the company's stock.

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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