Lazard (NYSE:LAZ) Hits New 12-Month Low - Time to Sell?

Key Points

• Lazard shares fell to a new 52-week low of $38.65, trading about 3.9% lower, below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the stock has an average “Hold” rating and a $50.38 price target, with four Buy, four Hold, and three Sell ratings. Lazard’s latest earnings missed estimates, despite revenue exceeding expectations.
• Lazard maintains a quarterly dividend of $0.50, equivalent to a 5.1% annual yield, while CEO Peter Orszag sold 125,000 shares under a pre-arranged trading plan; institutional investors own 54.8% of the stock.

Lazard, Inc. (NYSE:LAZ - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $38.65 and last traded at $39.4270, with a volume of 790709 shares changing hands. The stock had previously closed at $41.10.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on LAZ. Weiss Ratings downgraded shares of Lazard from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. Morgan Stanley set a $44.00 price objective on shares of Lazard in a research note on Friday, July 24th. The Goldman Sachs Group reissued a "sell" rating on shares of Lazard in a report on Thursday, July 23rd. Citigroup restated a "market outperform" rating on shares of Lazard in a research report on Friday, July 24th. Finally, Zacks Research cut Lazard from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 4th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $50.38.

Lazard Stock Down 3.9%

The stock has a market cap of $4.37 billion, a price-to-earnings ratio of 19.37, a P/E/G ratio of 1.12 and a beta of 1.43. The company has a current ratio of 2.84, a quick ratio of 2.84 and a debt-to-equity ratio of 1.87. The stock's 50-day moving average price is $43.23 and its 200-day moving average price is $44.43.

Lazard (NYSE:LAZ - Get Free Report) last posted its quarterly earnings data on Friday, July 24th. The asset manager reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.22). Lazard had a return on equity of 23.58% and a net margin of 6.95%.The firm had revenue of $786.47 million for the quarter, compared to analyst estimates of $736.29 million. During the same quarter last year, the company earned $0.52 earnings per share. The company's quarterly revenue was up 1.5% compared to the same quarter last year. On average, sell-side analysts expect that Lazard, Inc. will post 2.18 earnings per share for the current year.

Lazard Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, August 3rd were paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date of this dividend was Monday, August 3rd. Lazard's dividend payout ratio (DPR) is 98.04%.

Insider Activity at Lazard

In other news, CEO Peter Orszag sold 125,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $43.52, for a total value of $5,440,000.00. Following the completion of the sale, the chief executive officer directly owned 260,942 shares of the company's stock, valued at $11,356,195.84. This represents a 32.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.95% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lazard

Several institutional investors have recently added to or reduced their stakes in LAZ. AQR Capital Management LLC raised its position in shares of Lazard by 131.8% in the first quarter. AQR Capital Management LLC now owns 12,563 shares of the asset manager's stock valued at $544,000 after purchasing an additional 7,144 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of Lazard by 27.5% in the first quarter. Goldman Sachs Group Inc. now owns 759,867 shares of the asset manager's stock valued at $32,902,000 after acquiring an additional 163,983 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Lazard by 8.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 238,288 shares of the asset manager's stock valued at $10,318,000 after acquiring an additional 18,444 shares in the last quarter. American Century Companies Inc. increased its holdings in Lazard by 167.0% during the 2nd quarter. American Century Companies Inc. now owns 26,097 shares of the asset manager's stock worth $1,252,000 after acquiring an additional 16,322 shares during the period. Finally, Prudential Financial Inc. boosted its holdings in Lazard by 62.4% in the 2nd quarter. Prudential Financial Inc. now owns 7,102 shares of the asset manager's stock valued at $369,000 after purchasing an additional 2,730 shares during the period. Institutional investors own 54.80% of the company's stock.

Lazard Company Profile

Lazard Ltd. NYSE: LAZ is a global financial advisory and asset management firm. The company provides advice on mergers and acquisitions, capital structure, restructuring, strategic matters and other corporate finance activities. Lazard also offers asset management services for institutions, financial intermediaries, private clients and other investors.

Lazard traces its origins to 1848, when the Lazard brothers established a business in New Orleans. The firm later expanded to San Francisco and Paris, developing an international platform that serves clients across North America, Europe, Asia-Pacific and other key global markets.

The company operates through financial advisory and asset management businesses, with teams serving corporations, governments, institutions and high-net-worth individuals.

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