Lazard (NYSE:LAZ) Shares Down 8.2% - Should You Sell?

Key Points

• Lazard shares fell 8.2% intraday to about $40.96, trading well below its 50- and 200-day moving averages (~$51.8) on volume roughly 40% below average.
• Analyst sentiment is mixed — the consensus rating is Hold (4 Buy / 4 Hold / 3 Sell) with an average target of $57.13, while firms have issued both upgrades and downgrades recently.
• The company beat Q4 estimates (EPS $0.80 vs $0.68; revenue $892M vs $876M) and pays a sizable dividend ($2.00 annual, 4.8% yield

Lazard, Inc. (NYSE:LAZ - Get Free Report)'s share price dropped 8.2% during mid-day trading on Monday . The stock traded as low as $40.63 and last traded at $40.96. Approximately 666,760 shares traded hands during trading, a decline of 40% from the average daily volume of 1,115,553 shares. The stock had previously closed at $44.64.

Wall Street Analyst Weigh In

LAZ has been the subject of a number of analyst reports. Morgan Stanley lowered their target price on Lazard from $61.00 to $59.00 and set an "underweight" rating for the company in a report on Tuesday, January 6th. Wall Street Zen raised shares of Lazard from a "hold" rating to a "buy" rating in a research report on Saturday, February 28th. Weiss Ratings restated a "hold (c)" rating on shares of Lazard in a research note on Monday, December 29th. Keefe, Bruyette & Woods lifted their price target on Lazard from $59.00 to $62.00 and gave the stock an "outperform" rating in a research report on Friday, January 30th. Finally, Citigroup reissued a "market outperform" rating on shares of Lazard in a research report on Friday, January 30th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $57.13.

Lazard Price Performance

The company's fifty day moving average price is $51.82 and its 200 day moving average price is $51.78. The company has a market capitalization of $4.61 billion, a P/E ratio of 18.92, a PEG ratio of 0.36 and a beta of 1.40. The company has a quick ratio of 2.28, a current ratio of 2.28 and a debt-to-equity ratio of 1.85.

Lazard (NYSE:LAZ - Get Free Report) last released its earnings results on Thursday, January 29th. The asset manager reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.12. The company had revenue of $892.00 million for the quarter, compared to analyst estimates of $876.32 million. Lazard had a return on equity of 33.04% and a net margin of 7.49%.Lazard's quarterly revenue was up 11.0% on a year-over-year basis. During the same period in the prior year, the firm posted $0.78 EPS. As a group, sell-side analysts forecast that Lazard, Inc. will post 4.24 EPS for the current year.

Lazard Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Monday, February 9th were paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 4.8%. The ex-dividend date of this dividend was Monday, February 9th. Lazard's dividend payout ratio (DPR) is 91.74%.

Hedge Funds Weigh In On Lazard

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Kestra Advisory Services LLC bought a new position in Lazard during the fourth quarter worth about $26,000. Sound Income Strategies LLC boosted its stake in Lazard by 59.5% during the fourth quarter. Sound Income Strategies LLC now owns 590 shares of the asset manager's stock valued at $31,000 after buying an additional 220 shares during the period. IFP Advisors Inc increased its position in shares of Lazard by 53.5% in the third quarter. IFP Advisors Inc now owns 643 shares of the asset manager's stock worth $34,000 after purchasing an additional 224 shares during the last quarter. Quest 10 Wealth Builders Inc. purchased a new stake in shares of Lazard during the 4th quarter valued at $32,000. Finally, Costello Asset Management INC purchased a new position in Lazard in the third quarter worth $37,000. 54.80% of the stock is owned by hedge funds and other institutional investors.

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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