Lazard (NYSE:LAZ) Shares Gap Down Following Weak Earnings

Key Points

• Lazard missed expectations — Q1 EPS was $0.42 vs. $0.52 expected and revenue was $673M vs. $707.4M expected, and the stock gapped down premarket (prior close $48.50, opened $45.42, last $46.18).
• The company declared a quarterly dividend of $0.50 (annualized $2.00) with a 4.4% yield, ex-dividend date May 11 and payable May 22, though the payout ratio is high at 91.74%.
• Analysts have trimmed targets and ratings (e.g., Morgan Stanley cut to $52 and UBS to $45) leaving an average consensus of Hold with a $52.50 target, while insiders have sold roughly 80,999 shares (~$3.29M) over the last 90 days.

Shares of Lazard, Inc. (NYSE:LAZ - Get Free Report) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $48.50, but opened at $45.42. Lazard shares last traded at $46.1820, with a volume of 206,459 shares changing hands.

The asset manager reported $0.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($0.10). The firm had revenue of $673.00 million during the quarter, compared to analysts' expectations of $707.42 million. Lazard had a return on equity of 33.04% and a net margin of 7.49%.The business's revenue for the quarter was up 16.8% on a year-over-year basis. During the same period last year, the company earned $0.56 earnings per share.

Lazard Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Monday, May 11th will be paid a $0.50 dividend. The ex-dividend date of this dividend 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 91.74%.

Analysts Set New Price Targets

LAZ has been the subject of a number of analyst reports. Morgan Stanley reduced their price objective on shares of Lazard from $59.00 to $52.00 and set an "underweight" rating for the company in a research note on Thursday, April 9th. UBS Group reduced their price objective on shares of Lazard from $48.00 to $45.00 and set a "neutral" rating for the company in a research note on Wednesday, April 8th. Zacks Research cut shares of Lazard from a "hold" rating to a "strong sell" rating in a research note on Friday, April 10th. Wall Street Zen cut shares of Lazard from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Lazard in a research note on Friday, March 27th. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $52.50.

Insider Buying and Selling at Lazard

In related news, CEO Christopher Hogbin sold 7,885 shares of the firm's stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $40.37, for a total transaction of $318,317.45. Following the completion of the transaction, the chief executive officer directly owned 15,773 shares of the company's stock, valued at approximately $636,756.01. This trade represents a 33.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Peter Richard Orszag sold 69,170 shares of the firm'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 transaction, the chief executive officer directly owned 210,942 shares of the company's stock, valued at $8,597,995.92. The trade was a 24.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 80,999 shares of company stock valued at $3,292,962 over the last ninety days. 0.95% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lazard

Several institutional investors have recently bought and sold shares of the stock. Teza Capital Management LLC raised its holdings in shares of Lazard by 2.4% in the 2nd quarter. Teza Capital Management LLC now owns 8,059 shares of the asset manager's stock valued at $387,000 after purchasing an additional 187 shares in the last quarter. Lesa Sroufe & Co raised its holdings in shares of Lazard by 0.4% in the 3rd quarter. Lesa Sroufe & Co now owns 52,836 shares of the asset manager's stock valued at $2,789,000 after purchasing an additional 217 shares in the last quarter. Sound Income Strategies LLC grew its position in shares of Lazard by 59.5% in the 4th 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 grew its position in shares of Lazard by 53.5% in the 3rd quarter. IFP Advisors Inc now owns 643 shares of the asset manager's stock worth $34,000 after buying an additional 224 shares during the last quarter. Finally, Xponance LLC grew its position in shares of Lazard by 3.7% in the 4th quarter. Xponance LLC now owns 6,454 shares of the asset manager's stock worth $313,000 after buying an additional 232 shares during the last quarter. 54.80% of the stock is owned by hedge funds and other institutional investors.

Lazard Stock Performance

The business's 50-day moving average price is $45.25 and its 200-day moving average price is $48.97. The company has a current ratio of 2.28, a quick ratio of 2.28 and a debt-to-equity ratio of 1.85. The stock has a market cap of $5.10 billion, a PE ratio of 20.73, a P/E/G ratio of 0.42 and a beta of 1.42.

Lazard Company Profile

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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