Jefferies Financial Group (NYSE:JEF) Shares Gap Down Following Weak Earnings

Shares of Jefferies Financial Group Inc. (NYSE:JEF) gapped down prior to trading 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 changing hands.

The financial services provider reported $0.57 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.88 by ($0.31). Jefferies Financial Group had a return on equity of 7.92% and a net margin of 10.57%. The firm had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.93 billion. During the same period in the previous year, the company posted $0.87 earnings per share. The company’s quarterly revenue was down 8.4% compared to the same quarter last year.

Jefferies Financial Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 29th. Investors of record on Monday, May 19th will be given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.89%. Jefferies Financial Group’s dividend payout ratio (DPR) is presently 53.69%.

Wall Street Analyst Weigh In

Several research firms have weighed in on JEF. Oppenheimer cut Jefferies Financial Group from an “outperform” rating to a “market perform” rating in a report on Wednesday, March 19th. The Goldman Sachs Group set a $75.00 target price on shares of Jefferies Financial Group in a research note on Wednesday, March 5th. Finally, Morgan Stanley cut their price target on shares of Jefferies Financial Group from $92.00 to $81.00 and set an “overweight” rating for the company in a research note on Thursday, March 13th.

Hedge Funds Weigh In On Jefferies Financial Group

A number of large investors have recently modified their holdings of the company. Hemington Wealth Management raised its stake in shares of Jefferies Financial Group by 71.8% during the fourth quarter. Hemington Wealth Management now owns 335 shares of the financial services provider’s stock worth $26,000 after acquiring an additional 140 shares in the last quarter. V Square Quantitative Management LLC purchased a new position in Jefferies Financial Group in the 4th quarter worth $27,000. Stephens Consulting LLC bought a new stake in Jefferies Financial Group in the fourth quarter worth $29,000. Wilmington Savings Fund Society FSB purchased a new stake in Jefferies Financial Group during the third quarter valued at about $32,000. Finally, GAMMA Investing LLC grew its stake in shares of Jefferies Financial Group by 158.3% during the fourth quarter. GAMMA Investing LLC now owns 514 shares of the financial services provider’s stock valued at $40,000 after buying an additional 315 shares during the last quarter. 60.88% of the stock is owned by hedge funds and other institutional investors.

Jefferies Financial Group Stock Performance

The stock has a market cap of $11.41 billion, a PE ratio of 18.59 and a beta of 1.37. The company has a fifty day moving average price of $67.40 and a 200 day moving average price of $69.52. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57.

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.