Jefferies Financial Group Inc. (NYSE:JEF) Sees Large Increase in Short Interest

Jefferies Financial Group Inc. (NYSE:JEF) was the recipient of a significant increase in short interest in November. As of November 15th, there was short interest totalling 12,180,000 shares, an increase of 17.0% from the October 31st total of 10,410,000 shares. Approximately 7.9% of the company’s stock are sold short. Based on an average daily trading volume, of 1,600,000 shares, the days-to-cover ratio is currently 7.6 days.

Jefferies Financial Group Stock Performance

Shares of NYSE JEF traded down $0.27 during mid-day trading on Tuesday, reaching $77.95. 1,192,516 shares of the company’s stock were exchanged, compared to its average volume of 1,268,972. The firm has a market capitalization of $16.02 billion, a price-to-earnings ratio of 33.31 and a beta of 1.35. Jefferies Financial Group has a 52 week low of $36.07 and a 52 week high of $80.53. The company has a debt-to-equity ratio of 1.53, a current ratio of 1.03 and a quick ratio of 1.03. The firm has a 50-day moving average price of $68.39 and a two-hundred day moving average price of $58.28.

Jefferies Financial Group (NYSE:JEF) last announced its quarterly earnings data on Wednesday, September 25th. The financial services provider reported $0.75 earnings per share for the quarter, missing the consensus estimate of $0.78 by ($0.03). Jefferies Financial Group had a return on equity of 6.40% and a net margin of 9.27%. The firm had revenue of $1.68 billion during the quarter, compared to analysts’ expectations of $1.71 billion. During the same period last year, the business posted $0.32 EPS. The company’s revenue was up 42.4% compared to the same quarter last year. Analysts predict that Jefferies Financial Group will post 3.13 EPS for the current year.

Jefferies Financial Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Monday, November 18th were issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.80%. The ex-dividend date was Monday, November 18th. Jefferies Financial Group’s payout ratio is presently 59.83%.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. UBS Group assumed coverage on shares of Jefferies Financial Group in a report on Tuesday, September 17th. They issued a “buy” rating and a $67.00 target price for the company. Oppenheimer raised their price objective on shares of Jefferies Financial Group from $73.00 to $83.00 and gave the company an “outperform” rating in a report on Thursday, November 14th. Finally, Morgan Stanley raised their price objective on shares of Jefferies Financial Group from $59.00 to $64.00 and gave the company an “equal weight” rating in a report on Monday, September 23rd.

Insider Buying and Selling at Jefferies Financial Group

In related news, President Brian P. Friedman sold 247,326 shares of the company’s stock in a transaction dated Wednesday, October 30th. The shares were sold at an average price of $65.20, for a total value of $16,125,655.20. Following the transaction, the president now directly owns 1,632,277 shares in the company, valued at approximately $106,424,460.40. This represents a 13.16 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Mitsui Financial Grou Sumitomo purchased 9,247,081 shares of the firm’s stock in a transaction that occurred on Thursday, September 19th. The stock was acquired at an average price 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 of the company’s stock, valued at $551,773,323.27. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last quarter, insiders have sold 1,286,923 shares of company stock valued at $88,999,151. 20.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Rothschild Investment LLC purchased a new position in Jefferies Financial Group during the 2nd quarter valued at about $25,000. Massmutual Trust Co. FSB ADV grew its holdings in Jefferies Financial Group by 75.7% during the 2nd quarter. Massmutual Trust Co. FSB ADV now owns 520 shares of the financial services provider’s stock valued at $26,000 after buying an additional 224 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new position in shares of Jefferies Financial Group in the third quarter worth approximately $32,000. Versant Capital Management Inc raised its stake in 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 valued at $33,000 after purchasing an additional 638 shares in the last quarter. Finally, Eastern Bank bought a new stake in Jefferies Financial Group during the third quarter valued at approximately $42,000. Hedge funds and other institutional investors own 60.88% of the company’s stock.

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.