Zacks: Brokerages Expect Legg Mason Inc (LM) Will Announce Quarterly Sales of $752.79 Million

Wall Street brokerages expect Legg Mason Inc (NYSE:LM) to announce sales of $752.79 million for the current fiscal quarter, according to Zacks. Two analysts have provided estimates for Legg Mason’s earnings, with the highest sales estimate coming in at $753.00 million and the lowest estimate coming in at $752.57 million. Legg Mason reported sales of $768.34 million during the same quarter last year, which would suggest a negative year over year growth rate of 2%. The firm is expected to issue its next earnings report after the market closes on Wednesday, October 24th.

On average, analysts expect that Legg Mason will report full year sales of $3.01 billion for the current financial year, with estimates ranging from $2.96 billion to $3.05 billion. For the next financial year, analysts anticipate that the firm will report sales of $3.07 billion, with estimates ranging from $2.95 billion to $3.15 billion. Zacks’ sales calculations are a mean average based on a survey of sell-side research firms that that provide coverage for Legg Mason.

Legg Mason (NYSE:LM) last posted its quarterly earnings data on Wednesday, July 25th. The asset manager reported $0.75 EPS for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.03). The company had revenue of $747.91 million for the quarter, compared to analysts’ expectations of $748.72 million. Legg Mason had a return on equity of 8.12% and a net margin of 11.87%. The company’s revenue for the quarter was down 5.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.52 EPS.

A number of research firms recently commented on LM. Morgan Stanley lifted their price objective on Legg Mason from $31.00 to $32.00 and gave the stock a “sell” rating in a research report on Tuesday. Royal Bank of Canada restated a “buy” rating and issued a $40.00 price target on shares of Legg Mason in a report on Thursday, July 26th. ValuEngine cut Legg Mason from a “sell” rating to a “strong sell” rating in a report on Monday, July 2nd. Wells Fargo & Co lowered their price target on Legg Mason from $44.00 to $43.00 and set an “outperform” rating for the company in a report on Friday, July 13th. Finally, Zacks Investment Research cut Legg Mason from a “hold” rating to a “sell” rating in a report on Tuesday, June 26th. Four investment analysts have rated the stock with a sell rating, four have issued a hold rating and three have given a buy rating to the stock. Legg Mason has an average rating of “Hold” and a consensus target price of $43.60.

Legg Mason stock traded down $0.05 during midday trading on Monday, reaching $28.83. 1,074,981 shares of the company were exchanged, compared to its average volume of 906,564. The stock has a market cap of $2.67 billion, a PE ratio of 7.75, a P/E/G ratio of 0.54 and a beta of 1.88. Legg Mason has a 1 year low of $28.24 and a 1 year high of $47.13. The company has a current ratio of 2.41, a quick ratio of 1.64 and a debt-to-equity ratio of 0.58.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 23rd. Shareholders of record on Friday, October 5th will be issued a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 4.72%. The ex-dividend date of this dividend is Thursday, October 4th. Legg Mason’s dividend payout ratio (DPR) is 36.56%.

In other Legg Mason news, insider Frances Cashman sold 10,058 shares of Legg Mason stock in a transaction dated Monday, September 24th. The stock was sold at an average price of $31.61, for a total value of $317,933.38. Following the completion of the sale, the insider now owns 72,937 shares in the company, valued at approximately $2,305,538.57. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 4.33% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LM. American Century Companies Inc. acquired a new position in shares of Legg Mason in the 2nd quarter valued at about $23,440,000. Clarkston Capital Partners LLC lifted its stake in shares of Legg Mason by 12.5% in the 2nd quarter. Clarkston Capital Partners LLC now owns 3,715,101 shares of the asset manager’s stock valued at $129,025,000 after purchasing an additional 412,813 shares in the last quarter. Nuveen Asset Management LLC acquired a new position in shares of Legg Mason in the 1st quarter valued at about $16,491,000. Algebris UK Ltd acquired a new position in shares of Legg Mason in the 2nd quarter valued at about $13,942,000. Finally, LSV Asset Management lifted its stake in shares of Legg Mason by 8.1% in the 2nd quarter. LSV Asset Management now owns 4,030,818 shares of the asset manager’s stock valued at $139,990,000 after purchasing an additional 302,140 shares in the last quarter. 86.55% of the stock is currently owned by institutional investors and hedge funds.

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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