Jefferies Financial Group (NYSE:JEF) Price Target Lowered to $61.00 at UBS Group

Key Points

• UBS Group lowered Jefferies Financial Group’s price target from $65 to $61 while maintaining a “neutral” rating, implying approximately 15.7% upside from the reported $52.73 share price.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $63.38; targets from other firms range from $50 to $83.
• Jefferies reported quarterly EPS of $1.02 and revenue of $2.21 billion, both below analyst expectations, but revenue grew 35% year over year. The company also authorized a $250 million share buyback, covering up to 2% of shares.

Jefferies Financial Group (NYSE:JEF - Get Free Report) had its price target cut by research analysts at UBS Group from $65.00 to $61.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the financial services provider's stock. UBS Group's target price would suggest a potential upside of 15.69% from the company's current price.

Other equities analysts also recently issued research reports about the stock. Loop Capital set a $60.00 price target on shares of Jefferies Financial Group in a research note on Monday, June 8th. The Goldman Sachs Group reiterated a "buy" rating and issued a $67.00 price objective on shares of Jefferies Financial Group in a research note on Wednesday. Oppenheimer decreased their target price on Jefferies Financial Group from $87.00 to $83.00 and set an "outperform" rating for the company in a report on Thursday, June 25th. Morgan Stanley upped their price target on Jefferies Financial Group from $44.00 to $50.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 9th. Finally, Weiss Ratings lowered Jefferies Financial Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, August 27th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $63.38.

Jefferies Financial Group Trading Down 2.2%

NYSE:JEF traded down $1.21 on Friday, hitting $52.73. The stock had a trading volume of 93,551 shares, compared to its average volume of 2,415,904. The company has a fifty day moving average price of $54.43 and a two-hundred day moving average price of $50.70. Jefferies Financial Group has a 1-year low of $35.53 and a 1-year high of $71.04. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 1.99. The stock has a market cap of $10.21 billion, a price-to-earnings ratio of 14.74 and a beta of 1.52.

Jefferies Financial Group (NYSE:JEF - Get Free Report) last issued its quarterly earnings data on Wednesday, June 24th. The financial services provider reported $1.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.16 by ($0.14). The business had revenue of $2.21 billion for the quarter, compared to analyst estimates of $2.30 billion. Jefferies Financial Group had a return on equity of 9.23% and a net margin of 7.58%.The firm's revenue for the quarter was up 35.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.40 earnings per share. Equities research analysts expect that Jefferies Financial Group will post 3.71 earnings per share for the current fiscal year.

Jefferies Financial Group declared that its Board of Directors has initiated a share buyback plan on Wednesday, June 24th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the financial services provider to repurchase up to 2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

Institutional Trading of Jefferies Financial Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in JEF. Sequoia Financial Advisors LLC lifted its position in shares of Jefferies Financial Group by 5.9% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 182,934 shares of the financial services provider's stock worth $9,143,000 after buying an additional 10,264 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of Jefferies Financial Group by 77.3% in the 2nd quarter. NewEdge Advisors LLC now owns 68,577 shares of the financial services provider's stock valued at $3,427,000 after buying an additional 29,899 shares during the last quarter. IFP Advisors Inc raised its stake in Jefferies Financial Group by 25.2% during the 2nd quarter. IFP Advisors Inc now owns 4,646 shares of the financial services provider's stock worth $232,000 after acquiring an additional 935 shares in the last quarter. Mraz Amerine & Associates Inc. raised its stake in Jefferies Financial Group by 0.5% during the 2nd quarter. Mraz Amerine & Associates Inc. now owns 617,122 shares of the financial services provider's stock worth $30,844,000 after acquiring an additional 2,799 shares in the last quarter. Finally, Allworth Financial LP lifted its position in Jefferies Financial Group by 84.7% in the second quarter. Allworth Financial LP now owns 11,649 shares of the financial services provider's stock valued at $582,000 after acquiring an additional 5,341 shares during the last quarter. Institutional investors and hedge funds own 60.88% of the company's stock.

Jefferies Financial Group News Roundup

Here are the key news stories impacting Jefferies Financial Group this week:

• Positive Sentiment: A Singapore court asset-freeze order involving Radiant World could improve recovery prospects for a Jefferies-linked fund reportedly exposed to nearly $500 million. The exposure is associated with the fund rather than necessarily being a direct parent-company loss, which may limit the impact on Jefferies itself. Jefferies fund wins Singapore asset freeze against Radiant World
• Neutral Sentiment: Jefferies reportedly plans to wind down an outsourced fixed-income trading unit. The move could reduce operational and risk exposure, but it may also eliminate a source of revenue; the financial impact was not disclosed. Jefferies to Wind Down Outsourced Fixed-Income Trading Business
• Negative Sentiment: BMO Capital Markets lowered its price target for JEF from $60 to $57 and assigned a “market perform” rating. Although the revised target still suggests potential upside, the downgrade signals more limited near-term appreciation and adds pressure while the stock trades below its 50-day moving average.
• Negative Sentiment: Investor concerns have resurfaced over a reported nearly $500 million Radiant World exposure at LAM Trade Finance Group II, a Jefferies-linked fund. The parent’s ultimate liability remains unclear, creating headline, litigation and reputational risks. Jefferies linked fund Radiant exposure
• Negative Sentiment: Jefferies’ latest quarterly results also provide a fundamental overhang: earnings per share came in at $1.02 versus the $1.16 consensus estimate, while revenue of $2.21 billion missed expectations of $2.30 billion. The year-over-year growth was strong, but the shortfall may reinforce concerns about execution and profitability.

About Jefferies Financial Group

Jefferies Financial Group Inc NYSE: JEF is a diversified financial services company that provides investment banking, capital markets, asset management and wealth management services. Its principal operating business, Jefferies, advises companies, governments and institutional investors on mergers and acquisitions, capital raising, restructuring and other strategic transactions.

Through its investment banking and securities operations, Jefferies offers equity and fixed-income underwriting, sales and trading, research, prime brokerage and related services.

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