Jefferies Financial Group (NYSE:JEF) Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Jefferies Financial Group from “Hold” to “Buy,” although the broader analyst consensus remains “Hold” with an average price target of $62.75.
• Jefferies shares opened at $47.85, below their 50-day moving average of $53.99 and 52-week high of $71.04. The company’s latest quarterly results missed estimates, reporting $1.02 in EPS versus $1.16 expected and revenue of $2.21 billion versus $2.30 billion expected.
• The board authorized a $250 million stock-buyback program, allowing repurchases of up to 2% of outstanding shares; institutional investors own 60.88% of the company.

Jefferies Financial Group (NYSE:JEF - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday, Wall Street Zen reports.

A number of other research firms also recently issued reports on JEF. Oppenheimer restated an "outperform" rating and set a $76.00 price objective on shares of Jefferies Financial Group in a report on Thursday. Morgan Stanley boosted their target price on shares of Jefferies Financial Group from $44.00 to $50.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 9th. The Goldman Sachs Group reissued a "buy" rating and set a $67.00 target price on shares of Jefferies Financial Group in a research report on Wednesday, September 9th. Loop Capital set a $60.00 price target on shares of Jefferies Financial Group in a report on Monday, June 8th. Finally, UBS Group dropped their price objective on Jefferies Financial Group from $65.00 to $61.00 and set a "neutral" rating on the stock in a research note on Friday, September 11th. Two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, Jefferies Financial Group presently has an average rating of "Hold" and a consensus target price of $62.75.

Jefferies Financial Group Price Performance

Jefferies Financial Group stock opened at $47.85 on Friday. Jefferies Financial Group has a 52 week low of $35.53 and a 52 week high of $71.04. The company's 50 day moving average price is $53.99 and its two-hundred day moving average price is $50.69. The stock has a market cap of $9.27 billion, a P/E ratio of 13.37 and a beta of 1.52. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 1.99.

Jefferies Financial Group (NYSE:JEF - Get Free Report) last released its earnings results on Wednesday, June 24th. The financial services provider reported $1.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.16 by ($0.14). The business had revenue of $2.21 billion during the quarter, compared to the consensus estimate of $2.30 billion. Jefferies Financial Group had a net margin of 7.58% and a return on equity of 9.23%. The business's revenue was up 35.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.40 earnings per share. On average, equities analysts predict that Jefferies Financial Group will post 3.68 earnings per share for the current year.

Jefferies Financial Group declared that its board has approved a stock buyback program on Wednesday, June 24th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the financial services provider to purchase up to 2% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Jefferies Financial Group

Hedge funds and other institutional investors have recently bought and sold shares of the business. Smithfield Trust Co bought a new stake in shares of Jefferies Financial Group during the 4th quarter valued at $27,000. Ramirez Asset Management Inc. purchased a new position in Jefferies Financial Group during the 4th quarter valued at about $31,000. CX Institutional increased its position in shares of Jefferies Financial Group by 77.6% during the second quarter. CX Institutional now owns 547 shares of the financial services provider's stock valued at $27,000 after buying an additional 239 shares during the period. Global Retirement Partners LLC bought a new stake in shares of Jefferies Financial Group during the second quarter valued at about $36,000. Finally, Trust Co. of Vermont purchased a new stake in shares of Jefferies Financial Group in the second quarter worth about $39,000. Institutional investors own 60.88% of the company's stock.

Key Jefferies Financial Group News

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

• Positive Sentiment: Oppenheimer maintained an Outperform rating and said Jefferies could benefit from a revival in mergers and acquisitions, although it lowered its price target to $76 from $83. A stronger M&A environment could support Jefferies’ investment-banking revenue. Jefferies Financial Group Seen Benefiting From M&A Revival
• Positive Sentiment: Jefferies is serving as a joint book-running manager for Electra Therapeutics’ upsized $350 million IPO. The mandate highlights continued equity-capital-markets activity and could generate underwriting fees, though the financial impact on JEF is likely modest. Electra Therapeutics IPO

Jefferies Financial Group Company Profile

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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