Lazard (NYSE:LAZ) Shares Gap Down - Here's What Happened

Key Points

• Lazard shares fell sharply, gapping down from $47.30 to $43.88 before trading around $44.88, a move of about 8% lower on the day.
• Recent earnings missed expectations: the company reported $0.42 EPS versus the $0.52 consensus and revenue of $672.98 million versus $707.42 million expected, even though revenue rose 16.8% year over year.
• Wall Street sentiment is mixed, with analysts split between Buy, Hold, and Sell ratings; the stock currently carries an average “Hold” rating and an average price target of $52.56.

Lazard, Inc. (NYSE:LAZ - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $47.30, but opened at $43.88. Lazard shares last traded at $44.8760, with a volume of 449,734 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have commented on LAZ. Citizens Jmp decreased their price objective on Lazard from $65.00 to $60.00 and set a "market outperform" rating on the stock in a report on Friday, April 10th. The Goldman Sachs Group raised their price target on Lazard from $40.00 to $45.00 and gave the stock a "sell" rating in a research report on Tuesday, April 14th. Weiss Ratings cut Lazard from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, May 22nd. UBS Group restated a "neutral" rating and issued a $44.00 price target on shares of Lazard in a research report on Tuesday. Finally, Keefe, Bruyette & Woods raised their price target on Lazard from $47.00 to $49.00 and gave the stock a "market perform" rating in a research report on Monday, May 4th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $52.56.

Lazard Stock Down 8.0%

The firm has a 50 day moving average of $46.56 and a two-hundred day moving average of $48.54. The firm has a market capitalization of $4.86 billion, a price-to-earnings ratio of 17.19, a price-to-earnings-growth ratio of 0.49 and a beta of 1.41. The company has a quick ratio of 3.51, a current ratio of 3.51 and a debt-to-equity ratio of 1.94.

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

Lazard Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Monday, May 11th were paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date of this dividend was Monday, May 11th. Lazard's dividend payout ratio (DPR) is presently 79.05%.

Insider Transactions at Lazard

In other news, CEO Christopher Hogbin sold 3,944 shares of Lazard stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $39.37, for a total transaction of $155,275.28. Following the sale, the chief executive officer directly owned 11,829 shares of the company's stock, valued at approximately $465,707.73. This trade represents a 25.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Peter Richard Orszag sold 69,170 shares of Lazard stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $40.76, for a total value of $2,819,369.20. Following the sale, the chief executive officer directly owned 210,942 shares in the company, 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 worth $3,292,962 over the last three months. Insiders own 0.95% of the company's stock.

Hedge Funds Weigh In On Lazard

A number of hedge funds have recently made changes to their positions in the stock. Axiom Investment Management LLC bought a new position in shares of Lazard during the first quarter worth about $89,000. Bank of America Corp DE raised its position in shares of Lazard by 28.4% during the first quarter. Bank of America Corp DE now owns 448,446 shares of the asset manager's stock worth $19,050,000 after acquiring an additional 99,110 shares during the last quarter. Edgestream Partners L.P. bought a new position in shares of Lazard during the first quarter worth about $3,392,000. Janus Henderson Group PLC increased its holdings in Lazard by 3.5% in the first quarter. Janus Henderson Group PLC now owns 1,431,358 shares of the asset manager's stock worth $60,806,000 after purchasing an additional 48,607 shares in the last quarter. Finally, Amundi increased its holdings in Lazard by 2,607.1% in the first quarter. Amundi now owns 155,224 shares of the asset manager's stock worth $6,594,000 after purchasing an additional 149,490 shares in the last quarter. 54.80% of the stock is currently owned by institutional investors.

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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