Lazard (NYSE:LAZ) Shares Gap Down - Time to Sell?

Key Points

• Lazard shares gapped down at the open, falling from a prior close of $42.14 to $40.55 before later trading around $43.68. The move came amid heightened attention on whether the stock is due for a pullback or still supported by recent gains.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $51.00. Recent firms have cut targets or issued cautious ratings, including Morgan Stanley’s underweight call and KBW’s lower target of $44.
• Lazard’s latest earnings missed estimates, posting $0.42 EPS versus $0.52 expected and revenue of $672.98 million versus $707.42 million forecast. The company still reported 16.8% year-over-year revenue growth and pays a $2.00 annual dividend yielding about 4.6%.

Lazard, Inc. (NYSE:LAZ - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $42.14, but opened at $40.55. Lazard shares last traded at $43.6760, with a volume of 99,565 shares.

Analyst Upgrades and Downgrades

LAZ has been the subject of several research reports. The Goldman Sachs Group set a $40.00 target price on Lazard in a research report on Friday, June 12th. Weiss Ratings raised Lazard from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, July 15th. Argus decreased their price objective on Lazard from $63.00 to $52.00 and set a "buy" rating for the company in a report on Tuesday, May 5th. Keefe, Bruyette & Woods dropped their target price on shares of Lazard from $49.00 to $44.00 and set a "market perform" rating on the stock in a report on Friday, July 10th. Finally, Morgan Stanley reduced their target price on shares of Lazard from $53.00 to $47.00 and set an "underweight" rating on the stock in a research report on Thursday, July 9th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Lazard presently has an average rating of "Hold" and a consensus target price of $51.00.

Lazard Trading Up 3.7%

The company has a debt-to-equity ratio of 1.94, a quick ratio of 3.51 and a current ratio of 3.51. The company has a market cap of $4.88 billion, a P/E ratio of 17.27, a price-to-earnings-growth ratio of 0.64 and a beta of 1.43. The stock has a 50-day moving average of $44.41 and a two-hundred day moving average of $46.91.

Lazard (NYSE:LAZ - Get Free Report) last released its earnings results on Friday, May 1st. The asset manager reported $0.42 EPS for the quarter, missing the consensus estimate of $0.52 by ($0.10). The company had revenue of $672.98 million during the quarter, compared to the consensus estimate of $707.42 million. Lazard had a return on equity of 29.30% and a net margin of 8.47%.The company's revenue was up 16.8% compared to the same quarter last year. During the same period last year, the firm posted $0.56 earnings per share. On average, equities research analysts predict that Lazard, Inc. will post 2.63 earnings per share for the current year.

Lazard Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Monday, May 11th were paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 4.6%. The ex-dividend date was Monday, May 11th. Lazard's dividend payout ratio is currently 79.05%.

Hedge Funds Weigh In On Lazard

Hedge funds have recently added to or reduced their stakes in the company. CX Institutional boosted its stake in Lazard by 10.9% during the 2nd quarter. CX Institutional now owns 83,677 shares of the asset manager's stock valued at $3,509,000 after purchasing an additional 8,225 shares during the last quarter. Empowered Funds LLC purchased a new position in shares of Lazard in the first quarter worth $904,000. Axiom Investment Management LLC bought a new position in shares of Lazard during the first quarter valued at $89,000. Bank of America Corp DE lifted its holdings 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 valued at $19,050,000 after purchasing an additional 99,110 shares in the last quarter. Finally, Edgestream Partners L.P. purchased a new stake in shares of Lazard during the first quarter valued at $3,392,000. 54.80% of the stock is currently 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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