Bank of New York Mellon Corp Takes Position in Jefferies Financial Group Inc. $JEF

Key Points

• Bank of New York Mellon acquired 1.34 million shares of Jefferies Financial Group in the second quarter, valued at approximately $67 million and representing about 0.69% of the company. Institutional investors collectively own 60.88% of JEF.
• Jefferies reported second-quarter revenue of $2.21 billion, up 35% year over year, but earnings of $1.02 per share fell short of the $1.16 analyst consensus. The company trades at a price-to-earnings ratio of 14.68.
• The company declared a quarterly dividend of $0.40 per share, or a 3.0% annualized yield, and authorized a $250 million share-repurchase program. Analysts maintain a consensus “Hold” rating with an average price target of $62.62.

Bank of New York Mellon Corp purchased a new stake in shares of Jefferies Financial Group Inc. (NYSE:JEF - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 1,339,953 shares of the financial services provider's stock, valued at approximately $66,971,000. Bank of New York Mellon Corp owned approximately 0.69% of Jefferies Financial Group at the end of the most recent reporting period.

Several other institutional investors have also recently bought and sold shares of the business. Focus Partners Advisor Solutions LLC bought a new stake in shares of Jefferies Financial Group during the second quarter worth $1,329,000. GSA Capital Partners LLP acquired a new position in Jefferies Financial Group during the 2nd quarter worth about $1,444,000. Family Wealth Partners LLC bought a new stake in Jefferies Financial Group during the 2nd quarter worth about $244,000. Handelsbanken Fonder AB grew its holdings in Jefferies Financial Group by 3.4% during the 2nd quarter. Handelsbanken Fonder AB now owns 48,703 shares of the financial services provider's stock worth $2,434,000 after acquiring an additional 1,600 shares during the last quarter. Finally, Gradient Investments LLC increased its position in Jefferies Financial Group by 2.5% in the 2nd quarter. Gradient Investments LLC now owns 308,894 shares of the financial services provider's stock valued at $15,439,000 after acquiring an additional 7,453 shares in the last quarter. Institutional investors own 60.88% of the company's stock.

Jefferies Financial Group Trading Up 1.3%

JEF opened at $52.56 on Wednesday. The firm has a 50 day simple moving average of $54.95 and a 200 day simple moving average of $50.84. Jefferies Financial Group Inc. has a fifty-two week low of $35.53 and a fifty-two week high of $71.04. The company has a market cap of $10.18 billion, a price-to-earnings ratio of 14.68 and a beta of 1.54. The company has a debt-to-equity ratio of 1.99, a current ratio of 0.98 and a quick ratio of 0.98.

Jefferies Financial Group (NYSE:JEF - Get Free Report) last released its quarterly earnings data on Wednesday, June 24th. The financial services provider reported $1.02 EPS for the quarter, missing analysts' consensus estimates of $1.16 by ($0.14). Jefferies Financial Group had a net margin of 7.58% and a return on equity of 9.23%. The company had revenue of $2.21 billion during the quarter, compared to the consensus estimate of $2.30 billion. During the same quarter in the prior year, the company posted $0.40 EPS. The company's revenue for the quarter was up 35.0% compared to the same quarter last year. On average, sell-side analysts anticipate that Jefferies Financial Group Inc. will post 3.71 earnings per share for the current year.

Jefferies Financial Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Tuesday, August 18th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Tuesday, August 18th. Jefferies Financial Group's dividend payout ratio (DPR) is presently 44.69%.

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

Wall Street Analyst Weigh In

JEF has been the topic of several research analyst reports. Loop Capital set a $60.00 price target on shares of Jefferies Financial Group in a research note on Monday, June 8th. UBS Group dropped their price objective on shares of Jefferies Financial Group from $67.00 to $65.00 and set a "neutral" rating for the company in a research report on Thursday, June 25th. Weiss Ratings raised Jefferies Financial Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, August 12th. Morgan Stanley lifted their target price on 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. Finally, BMO Capital Markets boosted their target price on Jefferies Financial Group from $42.00 to $60.00 and gave the stock a "market perform" rating in a research report on Monday, June 8th. Two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Jefferies Financial Group presently has a consensus rating of "Hold" and an average target price of $62.62.

Jefferies Financial Group Company Profile

Jefferies Financial Group Inc is a diversified financial services company that provides a range of investment banking, capital markets and asset management services to corporations, governments and institutional investors worldwide. Through its core platform, Jefferies offers advisory services for mergers and acquisitions, debt and equity underwriting, restructuring and recapitalization. The firm also operates a global sales and trading business covering equities, fixed income and foreign exchange products, complemented by equity research and macroeconomic analysis.

In addition to its capital markets franchise, Jefferies maintains a growing asset management division that delivers customized investment solutions across public and private markets.

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