Hsbc Holdings PLC Buys 108,242 Shares of Jefferies Financial Group Inc. $JEF

Key Points

• Hsbc Holdings PLC sharply increased its stake in Jefferies Financial Group, buying 108,242 additional shares in the first quarter and raising its holdings by 895.7% to 120,326 shares worth about $4.97 million.
• Jefferies reported Q2 earnings of $1.02 per share, below analyst expectations of $1.16, while revenue came in at $2.21 billion versus the $2.30 billion consensus, though revenue still rose 35% year over year.
• The company authorized a $250 million stock buyback and also declared a quarterly dividend of $0.40 per share, implying an annualized yield of 2.9%.

Hsbc Holdings PLC lifted its stake in shares of Jefferies Financial Group Inc. (NYSE:JEF - Free Report) by 895.7% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 120,326 shares of the financial services provider's stock after purchasing an additional 108,242 shares during the period. Hsbc Holdings PLC owned 0.06% of Jefferies Financial Group worth $4,969,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Salomon & Ludwin LLC raised its holdings in shares of Jefferies Financial Group by 75.0% in the 4th quarter. Salomon & Ludwin LLC now owns 413 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 177 shares in the last quarter. Smithfield Trust Co purchased a new stake in shares of Jefferies Financial Group in the 4th quarter valued at $27,000. Elyxium Wealth LLC purchased a new stake in Jefferies Financial Group during the fourth quarter valued at about $28,000. Nvwm LLC purchased a new stake in Jefferies Financial Group during the 4th quarter valued at about $31,000. Finally, Ramirez Asset Management Inc. purchased a new stake in Jefferies Financial Group during the 4th quarter valued at $31,000. 60.88% of the stock is currently owned by institutional investors.

Jefferies Financial Group Trading Up 0.5%

Shares of Jefferies Financial Group stock opened at $55.87 on Friday. The firm has a market cap of $10.82 billion, a price-to-earnings ratio of 15.61 and a beta of 1.54. The business has a 50-day moving average price of $55.07 and a 200-day moving average price of $52.07. 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 Inc. has a twelve month low of $35.53 and a twelve month high of $71.04.

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 earnings per share (EPS) 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 the consensus estimate of $2.30 billion. During the same period in the previous year, the firm earned $0.40 EPS. The business's revenue was up 35.0% compared to the same quarter last year. Equities research analysts anticipate that Jefferies Financial Group Inc. will post 3.71 EPS for the current fiscal year.

Jefferies Financial Group declared that its Board of Directors has approved a stock repurchase plan on Wednesday, June 24th that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Jefferies Financial Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, August 18th will be given a dividend of $0.40 per share. The ex-dividend date is Tuesday, August 18th. This represents a $1.60 dividend on an annualized basis and a yield of 2.9%. Jefferies Financial Group's payout ratio is 44.69%.

Analyst Ratings Changes

A number of equities analysts recently issued reports on JEF shares. UBS Group decreased their price target on shares of Jefferies Financial Group from $67.00 to $65.00 and set a "neutral" rating for the company in a research note on Thursday, June 25th. Morgan Stanley upped their price target on shares of Jefferies Financial Group from $44.00 to $50.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 9th. Zacks Research raised Jefferies Financial Group from a "strong sell" rating to a "hold" rating in a report on Thursday, April 9th. Loop Capital set a $60.00 price target on shares of Jefferies Financial Group in a research note on Monday, June 8th. Finally, BMO Capital Markets raised 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 research 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, the company presently has an average rating of "Hold" and an average price target of $62.62.

Jefferies Financial Group 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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