Home Sectors Financial Services Stock to Track: Legg Mason (NYSE: LM)

Stock to Track: Legg Mason (NYSE: LM)

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Legg Mason is in the asset management industry and financial services sector. The company CEO is Joseph A. Sullivan. Legg Mason Inc is an asset management company. It provides related financial services to individuals, institutions, corporations and municipalities through its subsidiaries.

Previous Intraday Trading Performance:

The LM stock showed a previous change of 0.53% with an open at 28.25 and a close of 28.32. It reached an intraday high of 28.57 and a low of 28.25.

SeekingAlpha:  Legg Mason February AUM increases 2.2% M/M

Liquidity:

The stock has a market cap of $2.4b with 85.5m shares outstanding, of which the float is 78.3m shares. Trading volume reached 809,943 shares compared to its average volume of 1,074,396 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Legg Mason shares returned -0.67% and in the past 30 trading days it returned -2.75%. Over three months, it changed 10.13%. In one year it has changed -28.80% and within that year its 52-week high was 42.24 and its 52-week low was 23.25. LM stock is 21.81% above its 52 Week Low.

Our calculations show a 200 day moving average of 30.11 and a 50 day moving average of 28.72. Currently LM stock is trading -5.94% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

PR Newswire:  Legg Mason Reports Assets Under Management and Flows for February 2019

Earnings:

The last annual fiscal EPS for the company was reported at 3.03 that ended on 31st of March 2018, which according to the previous close, that is a PE of 9.35. Based on 6 analyst estimates, the consensus EPS for the next quarter is 0.70. The TTM EPS is 3.32, which comes to a TTM PE of 8.53.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.73
09-30-2018:  0.81
06-30-2018:  0.80
03-31-2018:  0.86

The dividend per share is currently 1.36, which is a dividend yield of 4.80%. Also, the payout ratio is 40.96%, therefore the dividend is safe according to our calculations. LM stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 21.26, which means it may be overvalued by -33.23%

Indicators to Watch:

Based on the latest filings, there is 122.60% of institutional ownership. Short-interest is 3,345,744, which is 3.91% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.82. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.65

PR Newswire:  Legg Mason Reports Assets Under Management and Flows for February 2019

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is -1.99%, return on assets is -0.94%, profit margin is -1.43%, price-to-sales is 0.81 and price-to-book is 0.66.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 0  :Past Performance Score
 3  :Financial Strength Score
 3  :Future Growth Score
 0  :Dividend Score
 1  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.