Jefferies Financial Group Inc. (NYSE:JEF) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts maintain a “Hold” consensus on Jefferies Financial Group, with five hold ratings and two buys. The average 12-month price target is $62.75, above the reported $47.87 share price.
• Jefferies missed quarterly earnings and revenue expectations, reporting $1.02 EPS versus $1.16 expected and $2.21 billion in revenue versus $2.30 billion forecast, although revenue increased 35% year over year.
• The company authorized a $250 million share buyback and pays a quarterly dividend of $0.40, equivalent to a 3.3% annualized yield.

Shares of Jefferies Financial Group Inc. (NYSE:JEF - Get Free Report) have been given an average recommendation of "Hold" by the seven analysts that are currently covering the firm, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $62.75.

Several research analysts have recently weighed in on the stock. Loop Capital set a $60.00 price objective on shares of Jefferies Financial Group in a report on Monday, June 8th. Morgan Stanley increased their price target on Jefferies Financial Group from $44.00 to $50.00 and gave the company an "equal weight" rating in a report on Tuesday, June 9th. Oppenheimer restated an "outperform" rating and issued a $76.00 price target on shares of Jefferies Financial Group in a research note on Thursday. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $67.00 price objective on shares of Jefferies Financial Group in a report on Wednesday, September 9th. Finally, Capital One Financial set a $57.00 target price on Jefferies Financial Group in a report on Friday, September 11th.

Jefferies Financial Group Trading Up 1.1%

Shares of NYSE JEF opened at $47.87 on Friday. The firm's 50 day moving average price is $54.07 and its 200-day moving average price is $50.71. Jefferies Financial Group has a 52-week low of $35.53 and a 52-week high of $71.04. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.98 and a current ratio of 0.98. The company has a market cap of $9.27 billion, a PE ratio of 13.37 and a beta of 1.52.

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

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

Jefferies Financial Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Tuesday, August 18th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend was Tuesday, August 18th. Jefferies Financial Group's dividend payout ratio (DPR) is currently 44.69%.

Jefferies Financial Group News Summary

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

• Positive Sentiment: Oppenheimer said Jefferies Financial Group could benefit from a revival in mergers and acquisitions, which would support its investment-banking advisory and underwriting businesses. A stronger deal environment would provide a potential earnings catalyst for JEF. Jefferies Financial Group Seen Benefiting From M&A Revival, Oppenheimer Says
• Neutral Sentiment: Jefferies-linked fund disclosures reportedly indicate that Radiant World may have only about $10,000 in cash and substantially lower inventories than previously expected. The fund’s connection to Jefferies could create reputational or investment-related concerns, although the reports do not establish the size of any direct exposure on JEF’s balance sheet. Jefferies-linked fund says Radiant World may hold just $10,000 in cash
• Neutral Sentiment: Jefferies hosted or participated in its India Forum, where companies including DLF, Phoenix Mills, Sona BLW Precision Forgings and Hitachi Energy India presented to investors. The activity reinforces Jefferies’ research, sales and corporate-access franchise, but the announcements do not directly change JEF’s earnings outlook. Jefferies India Forum company announcements
• Positive Sentiment: Jefferies maintained constructive views on Solar Industries, Paytm and Groww’s parent company. These recommendations may support perceptions of the firm’s equity-research franchise, though any financial benefit to JEF is likely indirect. Jefferies analyst recommendations

Hedge Funds Weigh In On Jefferies Financial Group

Hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Jefferies Financial Group in the 2nd quarter worth $834,947,000. Eminence Capital LP boosted its position in shares of Jefferies Financial Group by 13.5% during the fourth quarter. Eminence Capital LP now owns 3,812,615 shares of the financial services provider's stock worth $236,268,000 after acquiring an additional 454,054 shares during the last quarter. Geode Capital Management LLC grew its stake in Jefferies Financial Group by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 2,942,554 shares of the financial services provider's stock valued at $182,390,000 after acquiring an additional 24,171 shares in the last quarter. Norges Bank purchased a new position in Jefferies Financial Group during the fourth quarter valued at $145,584,000. Finally, Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Jefferies Financial Group in the 2nd quarter valued at $127,242,000. 60.88% of the stock is currently owned by institutional investors.

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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