Lazard, Inc. (NYSE:LAZ) has reported that its Executive Chairman, Kenneth M. Jacobs, has sold a significant amount of company stock, according to a recent SEC filing. On July 9, 2024, Jacobs sold a total of 74,395 shares of Lazard common stock at an average price of $40.1853 per share, resulting in a transaction value of approximately $2,989,585.
The shares were sold in multiple transactions with prices ranging from $40.00 to $40.47. The exact number of shares sold at each price point within this range has not been disclosed, but the company has stated that Jacobs is willing to provide full information upon request.
The transactions were made under a Rule 10b5-1 trading plan, which Jacobs had previously adopted on March 1, 2024. Such plans allow company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of nonpublic information, in order to avoid accusations of insider trading.
Following the sale, Jacobs still holds a substantial number of shares in the company. Directly, he owns 1,936,722 shares, and indirectly, through the Kenneth M. Jacobs 2005 GRAT, of which he is a co-trustee, he owns an additional 457,279 shares.
Lazard, a global financial advisory and asset management firm headquartered in New York, has not provided any further comments on the transactions. Investors and analysts often scrutinize insider sales for insights into executives' perspectives on their company's future performance, although such sales do not always indicate a lack of confidence in the firm.
The transactions are part of regular disclosures required by the SEC and provide transparency into the trading activities of corporate insiders.
In other recent news, Lazard Ltd has reported a return to profitability in the first quarter, a stark contrast to the loss reported during the same period last year. This financial resurgence is largely due to an increase in assets under management (AUM), which climbed to $250 billion from $232 billion a year ago. The firm's asset management division saw a revenue increase of 4%, amounting to $295 million. Additionally, Lazard's financial advisory segment, which guides stock sales and mergers and acquisitions, reported a significant 63% revenue jump to $454 million in the quarter. The company's profit was reported at $36 million, or 35 cents per share, a notable improvement from the $22 million loss, or 27 cents per share, recorded in the previous year's first quarter. These developments are recent and reflect a cautiously optimistic outlook from industry executives regarding the dealmaking landscape.
InvestingPro Insights
Amidst the news of Executive Chairman Kenneth M. Jacobs' recent stock sale, Lazard, Inc. (NYSE:LAZ) presents a mixed financial landscape according to the latest data from InvestingPro. With a market capitalization of $3.72 billion, the company's adjusted price-to-earnings (P/E) ratio stands at a significantly improved 2.03 for the last twelve months as of Q1 2024, compared to the unadjusted P/E ratio of -166.91. This substantial difference indicates a recent turnaround in profitability, aligning with an InvestingPro Tip that analysts predict the company will be profitable this year. Furthermore, Lazard's Price / Book ratio is relatively high at 9.49, which may suggest the stock is trading at a premium compared to its book value.
Investors may also take note of Lazard's commitment to shareholder returns, as reflected in its consistent dividend payments over the past 20 years, with a current dividend yield of 5.01%. Additionally, the firm's liquid assets exceed its short-term obligations, which may provide some reassurance about its financial stability.
For those looking to delve deeper into Lazard's financial health and future prospects, InvestingPro offers additional insights. There are currently six more InvestingPro Tips available, which could guide investors in making more informed decisions. For exclusive access to these tips and a more comprehensive analysis, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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