What’s Ahead for Legg Mason Inc After Today’s Bearish Options Activity?

 What's Ahead for Legg Mason Inc After Today's Bearish Options Activity?

In today’s session Legg Mason Inc (LM) recorded an unusually high (666) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious LM decrease. With 666 contracts traded and 674 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: LM161118P00034000 closed last at: $1.9 or 0% . About 266,058 shares traded hands. Legg Mason Inc (NYSE:LM) has risen 7.70% since March 2, 2016 and is uptrending. It has underperformed by 0.56% the S&P500.

Analysts await Legg Mason Inc (NYSE:LM) to report earnings on November, 4. They expect $0.54 earnings per share, down 39.33% or $0.35 from last year’s $0.89 per share. LM’s profit will be $55.44M for 15.65 P/E if the $0.54 EPS becomes a reality. After $0.31 actual earnings per share reported by Legg Mason Inc for the previous quarter, Wall Street now forecasts 74.19% EPS growth.

Legg Mason Inc (NYSE:LM) Ratings Coverage

Out of 11 analysts covering Legg Mason Inc. (NYSE:LM), 8 rate it a “Buy”, 1 “Sell”, while 2 “Hold”. This means 73% are positive. $67 is the highest target while $2 is the lowest. The $45.64 average target is 35.15% above today’s ($33.77) stock price. Legg Mason Inc. has been the topic of 32 analyst reports since August 4, 2015 according to StockzIntelligence Inc. Citigroup maintained Legg Mason Inc (NYSE:LM) rating on Thursday, September 10. Citigroup has “Buy” rating and $62.50 price target. The stock of Legg Mason Inc (NYSE:LM) has “Overweight” rating given on Monday, November 2 by Barclays Capital. The firm has “Neutral” rating given on Tuesday, November 3 by Susquehanna. The stock of Legg Mason Inc (NYSE:LM) has “Outperform” rating given on Wednesday, March 16 by Credit Suisse. The stock of Legg Mason Inc (NYSE:LM) earned “Outperform” rating by Wood on Thursday, September 3. The rating was maintained by RBC Capital Markets with “Sector Perform” on Monday, May 2. The firm earned “Negative” rating on Thursday, September 3 by Susquehanna. The stock of Legg Mason Inc (NYSE:LM) earned “Outperform” rating by RBC Capital Markets on Thursday, August 20. Jefferies maintained Legg Mason Inc (NYSE:LM) on Tuesday, March 29 with “Buy” rating. As per Wednesday, August 26, the company rating was upgraded by Danske Bank.

According to Zacks Investment Research, “Legg Mason, Inc. is a holding company which, through its subsidiaries, is principally engaged in providing asset management, securities brokerage, investment banking and related financial services to individuals, institutions, corporations and municipalities.”

Insitutional Activity: The institutional sentiment decreased to 0.74 in 2016 Q2. Its down 0.20, from 0.94 in 2016Q1. The ratio dropped, as 57 funds sold all Legg Mason Inc shares owned while 113 reduced positions. 34 funds bought stakes while 92 increased positions. They now own 80.49 million shares or 18.18% less from 98.38 million shares in 2016Q1.
The South Dakota-based South Dakota Council has invested 0.02% in Legg Mason Inc (NYSE:LM). Columbia L L C Investment Mgmt has invested 0.05% of its portfolio in Legg Mason Inc (NYSE:LM). Blackrock Fund Advisors last reported 0.01% of its portfolio in the stock. Moreover, Herndon Cap Mngmt Ltd has 0% invested in Legg Mason Inc (NYSE:LM) for 10 shares. Pax Ww Ltd Liability accumulated 0.8% or 467,833 shares. Credit Suisse Ag accumulated 356,038 shares or 0.01% of the stock. Fifth Third Bank last reported 0% of its portfolio in the stock. Pictet Asset Management Ltd accumulated 0.01% or 37,645 shares. Fairpointe Capital Limited Liability last reported 41,500 shares in the company. Valueworks Ltd Limited Liability Company last reported 4.29% of its portfolio in the stock. Continental Advsrs Limited Liability accumulated 0.25% or 28,060 shares. Bnp Paribas Arbitrage Sa owns 9,088 shares or 0% of their US portfolio. Systematic Mgmt Limited Partnership, a New Jersey-based fund reported 302,497 shares. Ibm Retirement Fund has 0.01% invested in the company for 10,622 shares. Us National Bank & Trust De has 7,798 shares for 0% of their US portfolio.

Insider Transactions: Since April 11, 2016, the stock had 1 insider purchase, and 3 insider sales for $337.09 million net activity. $336.84M worth of shares were sold by TRIAN FUND MANAGEMENT – L.P. on Monday, April 11. $101,760 worth of Legg Mason Inc (NYSE:LM) was bought by DAVIDSON CAROL ANTHONY. Schliessler Ursula also sold $52,568 worth of Legg Mason Inc (NYSE:LM) shares. On Monday, May 2 the insider Johnson Terence sold $301,276.

Legg Mason, Inc. is a holding company. The company has a market cap of $3.47 billion. The Firm and its subsidiaries are principally engaged in providing asset management and related financial services to individuals, institutions, firms and municipalities. It currently has negative earnings. The Firm operates through Global Asset Management segment.

LM Company Profile

Legg Mason, Inc., incorporated on January 13, 1981, is a holding company. The Firm and its subsidiaries are principally engaged in providing asset management and related financial services to individuals, institutions, firms and municipalities. The Firm operates through Global Asset Management segment. Global Asset Management provides investment advisory services to institutional and individual clients and to the Company-sponsored investment funds. The Company, through its subsidiaries, provides investment management and related services to institutional and individual clients, Company-sponsored investment funds and retail separately managed account programs. The Firm offers its services and products directly and through various financial intermediaries. The Firm has activities principally in the United States and the United Kingdom and also have offices in Australia, Bahamas, Brazil, Canada, Chile, China, Dubai, France, Germany, Italy, Japan, Luxembourg, Poland, Singapore, Spain, Switzerland and Taiwan.

More news for Legg Mason Inc (NYSE:LM) were recently published by: Businesswire.com, which released: “Legg Mason BW Global Income Opportunities Fund Inc. (BWG) Provides Market Update” on September 27, 2016. Benzinga.com‘s article titled: “KBW Analysts Say Legg Mason Is ‘On The Right Track Strategically'” and published on September 09, 2016 is yet another important article.

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