LONDON, August 24, 2026, 09:32 BST
- At 09:06 BST, Legal & General shares were down 0.3% at 283.9 pence.
- The stock has declined 6.9% since August 14 amid a wave of bearish broker recommendations.
- Six recent negative ratings have set targets ranging from 185p to 280p.
- The trailing yield stands at 7.7%, while a £1.2 billion buyback acts as the offset.
Shares of Legal & General Group Plc LON:LGEN edged down 0.3% to 283.9 pence on Monday. The insurer faces a widening broker sell wall even as cash returns remain elevated. This quote was logged at 09:06 BST on the London market.
The stock is down 6.9% since the close on August 14. From the peak of 316.4p on August 7, shares have declined 10.3%. The pace of the drop is significant. Six analysts now set negative targets in the 185p–280p range, while two bullish outlooks point to 320p–385p.
| Date | Close / latest | Daily move | Volume |
|---|---|---|---|
| Aug. 14 | 305.0p | up 1.9% | 17.0m |
| Aug. 17 | 302.0p | down 1.0% | 25.0m |
| Aug. 18 | 300.9p | off 0.4% | 13.5m |
| Aug. 19 | 298.0p | dropped 1.0% | 17.2m |
| Aug. 20 | 286.3p | fell 3.9% | 48.6m |
| Aug. 21 | 284.0p | down 0.8% | 56.3m |
| Aug. 24, 09:06 BST | 283.9p | down 0.3% | 4.9m |
The gap among investor projections is notably large. The eight estimates listed below result in an average target of 276.5p, which stands 2.6% under Monday’s market price. The forecasts range from 185p to 385p, a spread of 200p.
| Broker | Rating | Target | Upside/downside vs 283.9p |
|---|---|---|---|
| Goldman Sachs | Sell | 257p | −9.5% |
| UBS | Sell | 280p | −1.4% |
| JPMorgan Cazenove | Underweight | 270p | −4.9% |
| RBC Capital Markets | Underperform | 270p | −4.9% |
| Citigroup | Sell | 245p | −13.7% |
| Jefferies | Underperform | 185p | −34.8% |
| Berenberg | Buy | 385p | +35.6% |
| Peel Hunt | Add | 320p | +12.7% |
Citi downgraded Legal & General to sell after trimming its 2026–2027 remittance forecasts by 4.5%. The broker pointed to softer pension-buyout volumes and declining margins as reasons. UBS also noted that UK bulk-purchase annuity margins stood at 4.2%, down from 7.1% in the previous year.
Despite this pressure, group earnings improved. Core operating profit for the first half climbed 7% to £918 million. Core operating earnings per share advanced 11%, surpassing the management’s medium-term target range.
| Metric | H1 2026 / current | Comparison | Investor reading |
|---|---|---|---|
| Core operating profit | £918m | Up 7% from previous year | Earnings continue to rise |
| Core operating EPS | 12.15p | Increase of 11% | Exceeds 6%–9% guidance |
| Solvency II ratio | 201% | Within 160%–190% range | Solid capital position |
| Interim dividend | 6.24p | Lifted by 2% | Ongoing income gains |
| Buyback | £1.2bn | £450m finalised by end-July | 37.5% of target achieved |
| UK PRT margin | 4.2% | Down from 7.1% year ago | Main issue for downgrades |
Chief Executive António Simões noted the group was now “simpler” and “more focused.” He pointed to a 37% rise in asset-management fee revenues. Simões also said Legal & General had finished around £450 million of its £1.2 billion share buyback by end-July. Company statement
The cash return is significant. The 2025 dividend of 21.79p represents a trailing yield of 7.7% based on the 283.9p share price. The total buyback corresponds to 7.7% of the company’s £15.68 billion market capitalisation as of Monday. Approximately 2.9% of the buyback was already finished.
As a result, the market is placing emphasis on quality rather than solvency. Legal & General holds a capital ratio of 201%, which is still above its target operating range. The key question is if softer pension-risk transfer economics will reduce future remittances sufficiently to counterbalance that margin.
Trading volume increased the negative outlook, with Friday’s turnover at 56.3 million shares. This figure was over three times higher than the average daily volume in July. The stock was unable to hold above 284p.
The opposing case is just as tangible. Asset-management fee income climbed 37%. Workplace pension assets under administration grew 27% to £128 billion. Management forecasts core EPS growth for the full year to surpass the upper end of its target range.
Risks: The valuation may come under pressure from slimmer pension buyout margins, increased credit losses, or softer cash remittances. Conversely, improved flows, speedier buyback implementation or robust capital generation could prompt bearish analysts to raise their targets.
Currently, the price is declining as investors place greater weight on margin warnings than on the headline yield. If the price holds above UBS’s 280p target, the case for income remains. A move down to Citi’s 245p target would indicate a more significant earnings adjustment.
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