Legal & General Group's (LGEN) Buy Rating Reiterated at Berenberg Bank

Key Points

• Berenberg Bank reaffirmed a "Buy" rating on Legal & General with a GBX 308 price target, implying about a 26.5% upside from the current price.
• Analyst coverage is mixed—two Buys, two Holds and one Sell—leaving an average rating of "Hold" and an average target of GBX 262.20; Goldman Sachs raised its target to GBX 263 and kept a "neutral" view.
• The board authorised a record £1.2bn buyback, but shares fell amid a short-term earnings miss and a lower solvency ratio (quarterly EPS GBX 831, ROE ~3.9%, net margin ~1.49%), triggering roughly a 6% intraday plunge.

Legal & General Group (LON:LGEN - Get Free Report)'s stock had its "buy" rating reaffirmed by analysts at Berenberg Bank in a report released on Thursday,Digital Look reports. They currently have a GBX 308 price objective on the financial services provider's stock. Berenberg Bank's price target would indicate a potential upside of 26.49% from the company's current price.

Separately, The Goldman Sachs Group raised their target price on shares of Legal & General Group from GBX 249 to GBX 263 and gave the company a "neutral" rating in a report on Wednesday, January 21st. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Legal & General Group presently has an average rating of "Hold" and an average target price of GBX 262.20.

Legal & General Group Price Performance

Shares of LON LGEN opened at GBX 243.50 on Thursday. The business has a fifty day moving average price of GBX 264.88 and a two-hundred day moving average price of GBX 250.66. The stock has a market capitalization of £13.71 billion, a PE ratio of 54.60, a P/E/G ratio of 2.34 and a beta of 0.81. Legal & General Group has a fifty-two week low of GBX 206.80 and a fifty-two week high of GBX 279.50.

Legal & General Group (LON:LGEN - Get Free Report) last issued its quarterly earnings results on Wednesday, March 11th. The financial services provider reported GBX 831 EPS for the quarter. Legal & General Group had a return on equity of 3.89% and a net margin of 1.49%. On average, equities analysts expect that Legal & General Group will post 24.2376446 EPS for the current year.

Legal & General Group declared that its board has initiated a share buyback plan on Wednesday, March 11th that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the financial services provider to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider António Simões sold 47,433 shares of the stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of GBX 262, for a total value of £124,274.46. Also, insider Mark Jordy bought 1,006 shares of the business's stock in a transaction on Friday, January 2nd. The stock was bought at an average price of GBX 261 per share, for a total transaction of £2,625.66. Insiders bought a total of 10,428 shares of company stock worth $2,757,069 in the last ninety days. Insiders own 0.59% of the company's stock.

Key Stories Impacting Legal & General Group

Here are the key news stories impacting Legal & General Group this week:

• Positive Sentiment: Board-authorised record buyback (£1.2bn) signals management thinks shares are undervalued and supports demand for stock. Legal & General tumbles despite launching record share buyback
• Positive Sentiment: High income profile: commentary highlights an ~8.9% yield and the firm’s appeal to income investors remains a key buy case despite near-term noise. As well as an 8.9%-yield, is there another reason to buy Legal & General’s shares after today’s results?
• Positive Sentiment: Valuation commentary argues recent weakness creates a buying opportunity for longer-term investors who prioritise yield and buybacks. Legal & General Group LSE: LGEN Valuation Check After Recent Share Price Weakness
• Neutral Sentiment: Official quarterly results: LGEN reported GBX 831 EPS for the quarter, with net margin ~1.49% and ROE ~3.9%; slides and conference call are available for detail. Legal & General earnings release / slides
• Neutral Sentiment: Investor chatter and forums are active (LSE share chat), reflecting heightened short-term interest and volatility around the prints and buyback. Legal & General Share Chat (LGEN)
• Negative Sentiment: Short-term earnings miss and a lower-than-expected solvency ratio (reported ~210%) triggered an earlier sell-off and analyst caution about margin and credit exposure in the life-insurance business. Britain's L&G shares fall after earnings misses, lower solvency ratio
• Negative Sentiment: Market reaction: coverage notes a sharp intraday drop (reports of a ~6% plunge) even after the buyback, highlighting how the earnings/solvency headlines outweighed the buyback for many traders. Legal & General (LGEN) Stock Plunges 6% Despite Record £1.2B Buyback Announcement

About Legal & General Group

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in Legal & General Retirement Institutional (LGRI), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Retail segments. The LGRI segment offers annuity contracts with guaranteed income for a specified time; and longevity insurance products. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.