Jefferies Financial Group (NYSE:JEF) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Jefferies Financial Group to “Hold” from “Buy,” while the broader analyst consensus is also “Hold,” with an average price target of $56.86.
• Several brokerages recently reduced their price targets, including UBS, Morgan Stanley, BMO Capital Markets and Oppenheimer, signaling limited near-term upside despite differing ratings.
• Jefferies exceeded quarterly expectations with $1.08 in EPS versus a $1.00 estimate and $2.22 billion in revenue, while its board authorized a $250 million share-repurchase program covering up to 2% of outstanding shares.

Jefferies Financial Group (NYSE:JEF - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other brokerages also recently weighed in on JEF. UBS Group decreased their price target on Jefferies Financial Group from $65.00 to $61.00 and set a "neutral" rating for the company in a report on Friday, September 11th. Morgan Stanley dropped their price objective on Jefferies Financial Group from $50.00 to $49.00 and set an "equal weight" rating on the stock in a research note on Tuesday. BMO Capital Markets cut their target price on Jefferies Financial Group from $57.00 to $50.00 and set a "market perform" rating on the stock in a research report on Tuesday. Oppenheimer lowered their target price on Jefferies Financial Group from $76.00 to $71.00 and set an "outperform" rating for the company in a report on Tuesday. Finally, Capital One Financial set a $50.00 price target on Jefferies Financial Group in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $56.86.

Jefferies Financial Group Trading Up 1.3%

NYSE JEF opened at $45.85 on Friday. The firm has a market capitalization of $8.88 billion, a PE ratio of 12.56 and a beta of 1.57. The business's 50-day moving average price is $52.24 and its two-hundred day moving average price is $51.12. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 1.99. Jefferies Financial Group has a 12 month low of $35.53 and a 12 month high of $66.60.

Jefferies Financial Group (NYSE:JEF - Get Free Report) last announced its earnings results on Monday, September 28th. The financial services provider reported $1.08 EPS for the quarter, beating the consensus estimate of $1.00 by $0.08. Jefferies Financial Group had a return on equity of 9.26% and a net margin of 7.50%.The business had revenue of $2.22 billion for the quarter, compared to analysts' expectations of $2.20 billion. During the same period in the prior year, the business posted $1.01 earnings per share. The firm's revenue was up 8.5% on a year-over-year basis. On average, analysts expect that Jefferies Financial Group will post 4.09 EPS for the current year.

Jefferies Financial Group declared that its Board of Directors has initiated a stock repurchase program on Wednesday, June 24th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 2% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board believes its shares are undervalued.

Institutional Trading of Jefferies Financial Group

Several hedge funds have recently bought and sold shares of JEF. CX Institutional lifted its holdings in 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 purchasing an additional 239 shares during the last quarter. Greenleaf Trust increased its stake in shares of Jefferies Financial Group by 5.3% in the second quarter. Greenleaf Trust now owns 6,347 shares of the financial services provider's stock worth $317,000 after purchasing an additional 322 shares in the last quarter. KBC Group NV increased its stake in shares of Jefferies Financial Group by 0.4% in the first quarter. KBC Group NV now owns 95,294 shares of the financial services provider's stock worth $3,933,000 after purchasing an additional 349 shares in the last quarter. Waterfront Wealth Inc. raised its position in shares of Jefferies Financial Group by 0.3% in the first quarter. Waterfront Wealth Inc. now owns 146,608 shares of the financial services provider's stock valued at $6,051,000 after purchasing an additional 452 shares during the period. Finally, EverSource Wealth Advisors LLC raised its position in shares of Jefferies Financial Group by 12.6% in the first quarter. EverSource Wealth Advisors LLC now owns 4,462 shares of the financial services provider's stock valued at $184,000 after purchasing an additional 499 shares during the period. Institutional investors and hedge funds own 60.88% of the company's stock.

Key Headlines Impacting Jefferies Financial Group

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

• Positive Sentiment: Jefferies’ expanded partnership with Sumitomo Mitsui Banking Corporation, including SMBC’s 20% stake in the venture, could strengthen JEF’s Japan equities, equity-capital-markets and investment-banking reach. The deeper alliance provides a potential long-term growth catalyst. Can Jefferies’ Expanded SMBC Partnership Bolster Its Growth in Japan?
• Neutral Sentiment: Jefferies’ research activity remains broad, with bullish calls on selected healthcare companies and positive views on SSE and Cordiant Digital Infrastructure. These reports may support the firm’s advisory and research franchise, but they do not directly change JEF’s earnings outlook. SSE investment plan stays on track as Jefferies retains buy rating
• Neutral Sentiment: Jefferies analysts cited strong, broad-based AI demand and visibility through 2028 at their Fully Connected conference, while also warning that Roblox’s recent rally may have been overly optimistic. These calls demonstrate ongoing research engagement but have limited direct impact on JEF. CoreWeave capacity constraints bolster Jefferies bull case
• Negative Sentiment: Several firms have lowered their expectations or price targets for Jefferies Financial Group, including Morgan Stanley, BMO Capital Markets and Goldman Sachs. The revisions reinforce concerns about limited near-term upside and are the clearest negative catalyst for JEF shares. Morgan Stanley Has Lowered Expectations for Jefferies Financial Group

Jefferies Financial Group Company Profile

Jefferies Financial Group Inc is a diversified financial services company that provides investment banking, capital markets, asset management and other financial services to corporations, institutional investors, governments and individual clients. Its principal operating business is Jefferies Group, an investment banking and securities firm.

Jefferies provides advisory services for mergers and acquisitions, restructurings and other strategic transactions, along with equity and debt underwriting, sales and trading, research, prime brokerage and securities services.

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