Lazard (NYSE:LAZ) Shares Gap Down Following Weak Earnings

Lazard, Inc. (NYSE:LAZ) shares gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $48.50, but opened at $45.42. Lazard shares last traded at $46.1820, with a volume of 206,459 shares changing hands.

The asset manager reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.10). Lazard had a return on equity of 33.04% and a net margin of 7.49%.The firm had revenue of $673.00 million during the quarter, compared to analysts’ expectations of $707.42 million. During the same period in the previous year, the firm earned $0.56 EPS. The firm’s quarterly revenue was up 16.8% on a year-over-year basis.

Lazard Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Monday, May 11th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 4.4%. The ex-dividend date of this dividend is Monday, May 11th. Lazard’s payout ratio is currently 91.74%.

Analysts Set New Price Targets

Several research firms have weighed in on LAZ. The Goldman Sachs Group boosted their target price on shares of Lazard from $40.00 to $45.00 and gave the stock a “sell” rating in a research report on Tuesday, April 14th. Keefe, Bruyette & Woods reissued a “market perform” rating and set a $47.00 target price (down from $62.00) on shares of Lazard in a research report on Wednesday, April 8th. Citizens Jmp dropped their target price on shares of Lazard from $65.00 to $60.00 and set a “market outperform” rating on the stock in a research report on Friday, April 10th. Citigroup reissued an “outperform” rating on shares of Lazard in a research report on Friday, April 10th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Lazard in a research report on Friday, March 27th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $52.50.

Insider Buying and Selling at Lazard

In other news, CEO Peter Richard Orszag sold 69,170 shares of the company’s stock in a transaction on 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 of the company’s stock, valued at $8,597,995.92. This represents a 24.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Christopher Hogbin sold 3,944 shares of the company’s stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $39.37, for a total transaction of $155,275.28. Following the completion of the sale, the chief executive officer directly owned 11,829 shares in the company, valued at $465,707.73. This trade represents a 25.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 80,999 shares of company stock worth $3,292,962 over the last ninety days. Insiders own 0.95% of the company’s stock.

Hedge Funds Weigh In On Lazard

Large investors have recently made changes to their positions in the company. Kestra Advisory Services LLC acquired a new position in shares of Lazard in the 4th quarter valued at $26,000. Sound Income Strategies LLC lifted its stake in shares of Lazard by 59.5% in the 4th 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 during the period. IFP Advisors Inc lifted its stake in shares of Lazard by 53.5% in the 3rd quarter. IFP Advisors Inc now owns 643 shares of the asset manager’s stock valued at $34,000 after purchasing an additional 224 shares during the period. Quest 10 Wealth Builders Inc. acquired a new position in shares of Lazard in the 4th quarter valued at $32,000. Finally, Costello Asset Management INC acquired a new position in shares of Lazard in the 3rd quarter valued at $37,000. 54.80% of the stock is currently owned by institutional investors and hedge funds.

Lazard Stock Performance

The company has a debt-to-equity ratio of 1.85, a quick ratio of 2.28 and a current ratio of 2.28. The firm’s 50 day moving average is $45.25 and its 200-day moving average is $48.97. The stock has a market capitalization of $5.10 billion, a price-to-earnings ratio of 20.73, a PEG ratio of 0.42 and a beta of 1.42.

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.