Jefferies Financial Group (NYSE:JEF) Shares Gap Down - Should You Sell?

Key Points

• Jefferies Financial Group's stock opened at $57.35, down from a previous close of $59.10, and last traded at $58.32 with a trading volume of 540,845 shares.
• Analysts have recently raised their price targets for Jefferies Financial Group, with Morgan Stanley increasing theirs to $74.00 and Zacks Research upgrading the stock to a "strong-buy" rating.
• The company announced a quarterly dividend of $0.40 per share, representing an annualized yield of 2.8%, with the ex-dividend date set for November 17th.

Jefferies Financial Group Inc. (NYSE:JEF - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $59.10, but opened at $57.35. Jefferies Financial Group shares last traded at $58.32, with a volume of 540,845 shares.

Analysts Set New Price Targets

A number of analysts have recently issued reports on JEF shares. Morgan Stanley lifted their price target on Jefferies Financial Group from $72.00 to $74.00 and gave the stock an "equal weight" rating in a research note on Tuesday, September 30th. Zacks Research raised shares of Jefferies Financial Group from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 3rd. BMO Capital Markets began coverage on shares of Jefferies Financial Group in a research report on Friday, October 3rd. They issued a "market perform" rating and a $69.00 target price for the company. Weiss Ratings restated a "hold (c-)" rating on shares of Jefferies Financial Group in a research report on Wednesday. Finally, Telsey Advisory Group set a $74.00 price objective on shares of Jefferies Financial Group in a report on Tuesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Jefferies Financial Group has a consensus rating of "Moderate Buy" and a consensus price target of $72.00.

Jefferies Financial Group Stock Down 1.8%

The stock has a market capitalization of $11.97 billion, a price-to-earnings ratio of 19.98 and a beta of 1.51. The business has a 50-day moving average of $63.11 and a 200-day moving average of $55.42. The company has a debt-to-equity ratio of 1.68, a quick ratio of 1.05 and a current ratio of 1.05.

Jefferies Financial Group (NYSE:JEF - Get Free Report) last announced its quarterly earnings results on Monday, September 29th. The financial services provider reported $1.01 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.22. The business had revenue of $2.05 billion during the quarter, compared to analysts' expectations of $1.75 billion. Jefferies Financial Group had a net margin of 7.40% and a return on equity of 7.29%. The business's revenue for the quarter was up 21.6% on a year-over-year basis. During the same period last year, the business earned $0.75 earnings per share. On average, sell-side analysts expect that Jefferies Financial Group Inc. will post 4.41 EPS for the current year.

Jefferies Financial Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Investors of record on Monday, November 17th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Monday, November 17th. Jefferies Financial Group's payout ratio is currently 54.98%.

Hedge Funds Weigh In On Jefferies Financial Group

Several institutional investors have recently bought and sold shares of the company. Elequin Capital LP lifted its position in shares of Jefferies Financial Group by 117.9% during the first quarter. Elequin Capital LP now owns 549 shares of the financial services provider's stock worth $29,000 after purchasing an additional 297 shares in the last quarter. JCIC Asset Management Inc. increased its stake in Jefferies Financial Group by 193.8% during the 1st quarter. JCIC Asset Management Inc. now owns 705 shares of the financial services provider's stock worth $38,000 after buying an additional 465 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in Jefferies Financial Group by 159.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 892 shares of the financial services provider's stock worth $49,000 after buying an additional 548 shares in the last quarter. Bessemer Group Inc. lifted its holdings in Jefferies Financial Group by 48.8% during the 2nd quarter. Bessemer Group Inc. now owns 912 shares of the financial services provider's stock worth $50,000 after buying an additional 299 shares in the last quarter. Finally, Hantz Financial Services Inc. boosted its position in Jefferies Financial Group by 3,577.8% in the 2nd quarter. Hantz Financial Services Inc. now owns 993 shares of the financial services provider's stock valued at $54,000 after buying an additional 966 shares during the period. 60.88% of the stock is owned by institutional investors and hedge funds.

About Jefferies Financial Group

Jefferies Financial Group Inc operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.