Legg Mason stock: buy or sell?

LM stock price: $48.85 0.47% At close on March 31st, 2020

Updated on:
March 31st, 2020

3

Legg Mason gained a slightly good 0.47% and closed at $48.85.

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.

Should I buy Legg Mason stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Legg Mason stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Legg Mason stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for LM stock for the last 30 days.

Legg Mason stock analysis

Daily outlook

Legg Mason gained a slightly good 0.47% and closed at $48.85.

Legg Mason shares gained 0.47% to $48.85 today. On January LM price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since SMA50d and SMA100d crossed up on December, LM price climbed $13.20 per share (37.03%).

LM stock chart (daily)

Weekly outlook

Shares of Legg Mason ended this week at $48.85 and inched a slightly good 1.10%. By mid February LM climbed a super good 19.13% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $50.28 resistance. Since mid January when LM stock price broke up the SMA40w line, it gained $13.27 (37.30%). Since late April 2019 when SMA20w and SMA40w crossed up, LM price gained $16.67 per share (51.80%).

LM stock chart (weekly)

Legg Mason stock price history

Legg Mason stock went public on August 1st, 1983 with a price of $0.001. Since then, LM stock surged a inf%, with an average of inf% per year. If you had invested $1,000 in Legg Mason stock in 1983, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

Legg Mason stock historical price chart

LM stock reached 52-week highs on February/18 at $50.28, and all-time highs 2006-02-01 with a price of 103.6.

Legg Mason stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not found any price forecast for Legg Mason stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Legg Mason presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
LM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.76n/a
2017-Q2-n/a0.77n/a
2017-Q32017-10-250.690.7813.0%
2017-Q42018-01-241.361.5816.2%
2018-Q12018-04-250.70.8622.9%
2018-Q22018-07-250.780.82.6%
2018-Q32018-10-240.830.81-2.4%
2018-Q42019-02-040.690.735.8%
2019-Q12019-04-230.51n/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Legg Mason annual sales escalated a remarkable 8.78% to $3,140.32 million dollars from $2,886.90 marked in 2017. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) inched a 1.21% to 9.08%.

Legg Mason fiscal year ends in March, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Legg Mason TTM sales up to were $2,210.65 and earnings $-78.00 M USD. When comparing this TTM figures with the last reported annuality, we can review Legg Mason business evolution since March 2018: Annual revenues up to , compared to lastest yearly report, collapsed a scary -29.60%. Regarding profit margin, Legg Mason plummed -12.61% to 9.08%

LM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,610 M-$-353.33 M-13.5%-
2014$2,750 M5.36%$285 M10.4%-180.60%
2015$2,819 M2.51%$237 M8.4%-16.75%
2016$2,661 M-5.61%$-25.03 M-0.9%-110.56%
2017$2,887 M8.50%$227 M7.9%-1,007.86%
2018$3,140 M8.78%$285 M9.1%25.44%
TTM $2,211 M-29.60%$-78.00 M-3.5%-127.36%

Quarterly financial results

Legg Mason posted million in sales for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter income marked M with a profit margin of . Profit margin stayed constant a 0.00% compared to previous quarter when profit margin was -30.79%. When comparing revenues to same quarter last year, Legg Mason sales marked a chilling drop down and plunged a -100.00%. Looking back to recent quarterly results, Legg Mason posted 2 positive quarters in a row.
LM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$723 M-$73.37 M10.1%-
2017-Q2$778 M7.62%$49.18 M6.3%-32.97%
2017-Q3$770 M-1.03%$72.98 M9.5%48.39%
2017-Q4$793 M2.98%$149.22 M18.8%104.47%
2018-Q1$785 M-1.01%$9.27 M1.2%-93.79%
2018-Q2$748 M-4.73%$66.09 M8.8%613.02%
2018-Q3$758 M1.41%$72.80 M9.6%10.16%
2018-Q4$704 M-7.13%$-216.89 M-30.8%-397.91%

Legg Mason ownership

When you are planning to buy shares of a stock, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Legg Mason, 2.29% of all outstanding shares are owned by its staff.

Bearish positions for LM stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

LM
Market cap$4.2 B
Total shares86.9 M
Float shares85.5 M
  - Institutional holdings (%)87.9%
  - Insider holdings (%)2.3%
Shares in short selling0.0%

Legg Mason summary

Tuesday, March 31st, 2020
Open$48.52
Close$48.85
Day range$48.32 - $48.99
Previous close$48.62
Session gain0.47%
Average true range$1.81
50d mov avg$45.04
100d mov avg$40.98
200d mov avg$38.59
Daily pattern
Weekly pattern lb02a

Legg Mason performance

To measure stock performance is always good to benchmark with competitors or related stocks. We compared Legg Mason against in the following table:
Stock3m6m12m
LMLegg Mason36.87%37.53%72.13%

Legg Mason competitors

Unfortunately, we could not find any public company that could be defined as Legg Mason competitor. This doesn't mean Legg Mason does not have any competitor in the market, it's just we could not detected it.