Callodine Capital Management LP Acquires New Position in Lazard, Inc. $LAZ

Callodine Capital Management LP bought a new position in shares of Lazard, Inc. (NYSE:LAZ) during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor bought 308,420 shares of the asset manager’s stock, valued at approximately $13,102,000.

A number of other hedge funds also recently added to or reduced their stakes in LAZ. AQR Capital Management LLC grew its stake 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 worth $544,000 after acquiring an additional 7,144 shares in the last quarter. Goldman Sachs Group Inc. raised its stake 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 in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Lazard by 8.4% in 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 purchasing an additional 18,444 shares during the period. American Century Companies Inc. boosted its holdings in Lazard by 167.0% in the second quarter. American Century Companies Inc. now owns 26,097 shares of the asset manager’s stock valued at $1,252,000 after purchasing an additional 16,322 shares during the period. Finally, Prudential Financial Inc. grew its stake in Lazard by 62.4% during the 2nd quarter. Prudential Financial Inc. now owns 7,102 shares of the asset manager’s stock worth $369,000 after purchasing an additional 2,730 shares in the last quarter. 54.80% of the stock is currently owned by institutional investors and hedge funds.

Lazard Trading Up 2.7%

Shares of Lazard stock opened at $44.21 on Friday. The company has a fifty day simple moving average of $44.24 and a 200-day simple moving average of $46.78. Lazard, Inc. has a 12-month low of $38.67 and a 12-month high of $58.75. The company has a current ratio of 2.84, a quick ratio of 3.51 and a debt-to-equity ratio of 1.87. The stock has a market cap of $4.94 billion, a price-to-earnings ratio of 21.67, a PEG ratio of 0.65 and a beta of 1.43.

Lazard (NYSE:LAZ) last announced its quarterly earnings results on Thursday, July 23rd. The asset manager reported $0.12 EPS 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 company had revenue of $786.02 million for the quarter, compared to analyst estimates of $736.29 million. During the same quarter in the prior year, the business earned $0.52 earnings per share. Lazard’s revenue was up 1.5% compared to the same quarter last year. On average, equities analysts forecast that Lazard, Inc. will post 2.45 EPS for the current fiscal year.

Lazard Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Monday, August 3rd will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend is Monday, August 3rd. Lazard’s payout ratio is presently 98.04%.

Wall Street Analysts Forecast Growth

LAZ has been the topic of several recent research reports. The Goldman Sachs Group restated a “sell” rating on shares of Lazard in a report on Thursday. Zacks Research upgraded Lazard from a “strong sell” rating to a “hold” rating in a research note on Monday, July 6th. Citigroup reissued a “market outperform” rating on shares of Lazard in a research report on Friday. Morgan Stanley set a $44.00 target price on shares of Lazard in a research note on Friday. Finally, Citizens Jmp reduced their target price on shares of Lazard from $65.00 to $60.00 and set a “market outperform” rating on the stock in a report on Friday, April 10th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Lazard presently has an average rating of “Hold” and a consensus target price of $50.38.

Lazard News Roundup

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard expanded its buyback plan while continuing to grow Asset Management revenue and assets under management, which supports the long-term capital return and earnings story. LAZ Stock Down as Q2 Earnings Lag on Higher Costs, Expands Buyback Plan
• Positive Sentiment: The company reiterated a long-term revenue target for Lazard Capital and outlined productivity goals, including higher revenue per managing director, suggesting management is focused on improving margins. Lazard targets $10m per MD by 2028 as it reiterates $500m Lazard CL 2027 revenue plan
• Neutral Sentiment: CEO Peter Orszag said AI should make future deal teams “leaner,” reinforcing the firm’s cost-efficiency push, but the impact on near-term results is still uncertain. Lazard CEO Orszag: AI will lead to ‘leaner’ deal teams with more MDs
• Neutral Sentiment: Lazard declared a quarterly dividend, which may appeal to income investors, but it is not a major fresh catalyst for the stock. Lazard earnings report and conference call
• Negative Sentiment: Q2 earnings missed expectations, with EPS of $0.12 versus estimates around $0.34-$0.42, reflecting pressure from weaker Financial Advisory revenue and higher expenses. Lazard (LAZ) Q2 Earnings Miss Estimates
• Negative Sentiment: Profit fell sharply year over year, with reports pointing to a 91% decline in quarterly profit due to a higher tax rate and volatility in the advisory business, which likely weighed on sentiment. Lazard profit plunges on elevated tax rate, financial advisory volatility
• Negative Sentiment: Keefe, Bruyette & Woods cut its price target on LAZ to $42 and kept a market-perform rating, signaling limited near-term upside. Benzinga report on Lazard price target cut

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.