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

Jefferies Financial Group Inc. (NYSE:JEF)’s stock price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $60.29, but opened at $54.28. Jefferies Financial Group shares last traded at $55.35, with a volume of 1,019,138 shares traded.

The financial services provider reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.88 by ($0.28). The company had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.93 billion. Jefferies Financial Group had a net margin of 10.57% and a return on equity of 7.92%. The company’s quarterly revenue was down 8.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.87 EPS.

Jefferies Financial Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 29th. Investors of record on Monday, May 19th will be issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.94%. The ex-dividend date of this dividend is Monday, May 19th. Jefferies Financial Group’s dividend payout ratio (DPR) is presently 53.69%.

Analysts Set New Price Targets

Several equities analysts have commented on JEF shares. The Goldman Sachs Group set a $75.00 price objective on shares of Jefferies Financial Group in a research report on Wednesday, March 5th. Oppenheimer downgraded shares of Jefferies Financial Group from an “outperform” rating to a “market perform” rating in a report on Wednesday, March 19th. Finally, Morgan Stanley reduced their price objective on Jefferies Financial Group from $81.00 to $75.00 and set an “overweight” rating on the stock in a research note on Thursday.

Institutional Investors Weigh In On Jefferies Financial Group

Several institutional investors have recently made changes to their positions in JEF. Hemington Wealth Management lifted its stake in Jefferies Financial Group by 71.8% in the fourth quarter. Hemington Wealth Management now owns 335 shares of the financial services provider’s stock worth $26,000 after purchasing an additional 140 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in shares of Jefferies Financial Group during the 4th quarter worth approximately $27,000. Stephens Consulting LLC purchased a new position in Jefferies Financial Group during the 4th quarter valued at $29,000. GAMMA Investing LLC grew its position in Jefferies Financial Group by 158.3% in the 4th quarter. GAMMA Investing LLC now owns 514 shares of the financial services provider’s stock valued at $40,000 after acquiring an additional 315 shares during the last quarter. Finally, Wilmington Savings Fund Society FSB purchased a new stake in Jefferies Financial Group in the third quarter worth $32,000. Institutional investors own 60.88% of the company’s stock.

Jefferies Financial Group Stock Performance

The firm has a market capitalization of $11.22 billion, a P/E ratio of 18.26 and a beta of 1.37. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The firm has a 50-day moving average price of $67.00 and a two-hundred day moving average price of $69.41.

About Jefferies Financial Group

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.