Legg Mason (LM) Downgraded by Deutsche Bank to “Hold”

Deutsche Bank downgraded shares of Legg Mason (NYSE:LM) from a buy rating to a hold rating in a research report report published on Thursday, Marketbeat reports. They currently have $27.00 target price on the asset manager’s stock, down from their previous target price of $31.00.

LM has been the subject of several other research reports. Royal Bank of Canada restated a buy rating and set a $37.00 target price on shares of Legg Mason in a research note on Thursday, October 25th. Morgan Stanley boosted their price objective on Legg Mason from $31.00 to $32.00 and gave the company a sell rating in a research note on Tuesday, October 9th. Wells Fargo & Co reduced their price objective on Legg Mason from $39.00 to $34.00 and set an outperform rating for the company in a research note on Thursday, October 25th. Zacks Investment Research lowered Legg Mason from a hold rating to a sell rating in a report on Tuesday, December 11th. Finally, Jefferies Financial Group reaffirmed a hold rating and set a $39.00 price objective on shares of Legg Mason in a report on Thursday, October 11th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus price target of $37.55.

LM stock traded down $0.11 during trading on Thursday, hitting $26.70. 940,210 shares of the company’s stock were exchanged, compared to its average volume of 942,301. The stock has a market cap of $2.31 billion, a price-to-earnings ratio of 7.18, a PEG ratio of 0.54 and a beta of 1.60. Legg Mason has a 52-week low of $23.25 and a 52-week high of $47.13. The company has a quick ratio of 1.27, a current ratio of 1.77 and a debt-to-equity ratio of 0.50.

Legg Mason (NYSE:LM) last posted its earnings results on Wednesday, October 24th. The asset manager reported $0.82 earnings per share for the quarter, missing the consensus estimate of $0.83 by ($0.01). The business had revenue of $758.43 million for the quarter, compared to analysts’ expectations of $755.29 million. Legg Mason had a return on equity of 8.03% and a net margin of 11.81%. As a group, sell-side analysts anticipate that Legg Mason will post 3.12 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Monday, January 14th. Shareholders of record on Wednesday, December 19th will be issued a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 5.09%. The ex-dividend date of this dividend is Tuesday, December 18th. Legg Mason’s dividend payout ratio (DPR) is 36.56%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LM. Cornerstone Advisors Inc. raised its holdings in shares of Legg Mason by 113.0% in the 3rd quarter. Cornerstone Advisors Inc. now owns 1,127 shares of the asset manager’s stock worth $35,000 after purchasing an additional 598 shares during the period. Cerebellum GP LLC purchased a new position in shares of Legg Mason in the 4th quarter worth about $46,000. Quantbot Technologies LP purchased a new position in shares of Legg Mason in the 3rd quarter worth about $131,000. Sageworth Trust Co raised its holdings in shares of Legg Mason by 608.3% in the 3rd quarter. Sageworth Trust Co now owns 4,250 shares of the asset manager’s stock worth $133,000 after purchasing an additional 3,650 shares during the period. Finally, Westbourne Investment Advisors Inc. purchased a new position in shares of Legg Mason in the 3rd quarter worth about $137,000. Hedge funds and other institutional investors own 83.92% of the company’s stock.

About Legg Mason

Legg Mason, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides investment management and related services to company-sponsored mutual funds and other investment vehicles including pension funds, foundations, endowments, sovereign wealth funds, insurance companies, private banks, family offices, individuals, as well as to global, institutional, and retail clients.

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Analyst Recommendations for Legg Mason (NYSE:LM)

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