Jefferies Financial Group (NYSE:JEF) Shares Gap Down After Earnings Miss

Jefferies Financial Group Inc. (NYSE:JEF)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $61.97, but opened at $59.14. Jefferies Financial Group shares last traded at $62.10, with a volume of 366,651 shares traded.

The financial services provider reported $0.75 earnings per share for the quarter, missing the consensus estimate of $0.78 by ($0.03). The company had revenue of $1.68 billion for the quarter, compared to analysts’ expectations of $1.71 billion. Jefferies Financial Group had a net margin of 7.82% and a return on equity of 5.37%. The firm’s revenue was up 42.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.32 earnings per share.

Jefferies Financial Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 27th. Stockholders of record on Monday, November 18th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.29%. The ex-dividend date of this dividend is Monday, November 18th. Jefferies Financial Group’s dividend payout ratio is presently 77.35%.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on JEF shares. Oppenheimer boosted their price objective on Jefferies Financial Group from $64.00 to $66.00 and gave the company an “outperform” rating in a report on Friday, September 13th. UBS Group began coverage on Jefferies Financial Group in a research report on Tuesday, September 17th. They set a “buy” rating and a $67.00 price objective for the company. StockNews.com cut Jefferies Financial Group from a “buy” rating to a “hold” rating in a research report on Friday, June 21st. Finally, Morgan Stanley increased their price objective on Jefferies Financial Group from $59.00 to $64.00 and gave the stock an “equal weight” rating in a research report on Monday, September 23rd.

Insider Transactions at Jefferies Financial Group

In related news, Director Mitsui Financial Grou Sumitomo bought 9,247,081 shares of the firm’s stock in a transaction on Thursday, September 19th. The stock was bought at an average cost of $59.67 per share, for a total transaction of $551,773,323.27. Following the completion of the purchase, the director now directly owns 9,247,081 shares in the company, valued at approximately $551,773,323.27. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 20.40% of the company’s stock.

Institutional Investors Weigh In On Jefferies Financial Group

Several large investors have recently modified their holdings of the stock. Rothschild Investment LLC acquired a new stake in shares of Jefferies Financial Group in the second quarter worth $25,000. Massmutual Trust Co. FSB ADV boosted its position in shares of Jefferies Financial Group by 75.7% in the second quarter. Massmutual Trust Co. FSB ADV now owns 520 shares of the financial services provider’s stock worth $26,000 after buying an additional 224 shares during the period. Versant Capital Management Inc boosted its position in shares of Jefferies Financial Group by 1,993.8% in the second quarter. Versant Capital Management Inc now owns 670 shares of the financial services provider’s stock worth $33,000 after buying an additional 638 shares during the period. Ashton Thomas Private Wealth LLC purchased a new stake in shares of Jefferies Financial Group during the second quarter worth $48,000. Finally, Daiwa Securities Group Inc. purchased a new stake in shares of Jefferies Financial Group during the second quarter worth $80,000. 60.88% of the stock is owned by institutional investors.

Jefferies Financial Group Trading Down 0.1 %

The company has a debt-to-equity ratio of 1.28, a current ratio of 0.91 and a quick ratio of 0.91. The company has a fifty day moving average of $57.75 and a 200-day moving average of $50.17. The firm has a market capitalization of $12.55 billion, a PE ratio of 33.75 and a beta of 1.32.

Jefferies Financial Group Company Profile

Jefferies Financial Group Inc operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services.