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

Key Points

• Lazard shares gapped down — the stock closed at $44.16, opened at $41.88 and last traded around $42.42 on volume ~231,727, trading well below its 50- and 200-day moving averages (~$51.5).
• Analyst coverage is mixed (4 Buys, 5 Holds, 2 Sells) with an average rating of Hold and an average price target of $57.13, implying notable upside from current levels.
• The company beat Q4 estimates (EPS $0.80 vs. $0.68, revenue $892M vs. $876M, revenue +11% YoY) and pays a quarterly dividend of $0.50 (annualized yield 4.7%), though its dividend payout ratio is high (~91.7%).

Lazard, Inc. (NYSE:LAZ - Get Free Report) shares gapped down prior to trading on Thursday . The stock had previously closed at $44.16, but opened at $41.88. Lazard shares last traded at $42.4170, with a volume of 231,727 shares traded.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. UBS Group reiterated a "neutral" rating and set a $59.00 price target on shares of Lazard in a research note on Friday, January 30th. Bank of America began coverage on Lazard in a research report on Monday, January 26th. They set a "buy" rating and a $65.00 target price on the stock. Zacks Research raised Lazard from a "strong sell" rating to a "hold" rating in a report on Friday, March 6th. Weiss Ratings restated a "hold (c)" rating on shares of Lazard in a research report on Monday, December 29th. Finally, Wall Street Zen raised Lazard from a "hold" rating to a "buy" rating in a research report on Saturday, February 28th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Lazard presently has an average rating of "Hold" and an average price target of $57.13.

Lazard Price Performance

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 50 day simple moving average of $51.47 and a 200-day simple moving average of $51.56. The firm has a market cap of $4.72 billion, a PE ratio of 19.39, a price-to-earnings-growth ratio of 0.34 and a beta of 1.40.

Lazard (NYSE:LAZ - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The asset manager reported $0.80 EPS for the quarter, beating the consensus estimate of $0.68 by $0.12. Lazard had a return on equity of 33.04% and a net margin of 7.49%.The business had revenue of $892.00 million for the quarter, compared to the consensus estimate of $876.32 million. During the same period in the previous year, the business earned $0.78 earnings per share. The business's revenue was up 11.0% on a year-over-year basis. Equities analysts anticipate that Lazard, Inc. will post 4.24 earnings per share for the current fiscal year.

Lazard Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Monday, February 9th were issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 4.7%. 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

Several hedge funds have recently modified their holdings of LAZ. Kestra Advisory Services LLC bought a new stake in Lazard in the 4th quarter valued at $26,000. Sound Income Strategies LLC grew its position in shares of 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 purchasing an additional 220 shares in the last quarter. Quest 10 Wealth Builders Inc. bought a new stake in shares of Lazard in the fourth quarter worth about $32,000. IFP Advisors Inc lifted 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 buying an additional 224 shares in the last quarter. Finally, Costello Asset Management INC purchased a new stake in shares of Lazard in the third quarter worth about $37,000. Hedge funds and other institutional investors own 54.80% of the company's stock.

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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