Jefferies Financial Group (NYSE:JEF) Stock Price Down 8% on Disappointing Earnings

Key Points

• Jefferies Financial Group shares fell 8% after the company posted weaker-than-expected quarterly results. EPS came in at $1.02 versus estimates of $1.16, while revenue of $2.21 billion also missed forecasts.
• Despite the earnings miss, revenue still rose 35% year over year, and net earnings more than doubled from the prior-year period. The company said stronger investment banking and equities results helped drive the improvement.
• Jefferies also announced a $250 million share buyback and a quarterly dividend of $0.40 per share, equal to a 3.0% annualized yield. These moves suggest management is returning capital to shareholders even as the stock reacts to the earnings miss.

Jefferies Financial Group Inc. (NYSE:JEF - Get Free Report) shares traded down 8% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $52.25 and last traded at $53.3260. Approximately 1,376,903 shares traded hands during mid-day trading, a decline of 47% from the average session volume of 2,615,694 shares. The stock had previously closed at $57.94.

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 net margin of 6.61% and a return on equity of 7.83%. The business had revenue of $2.21 billion during the quarter, compared to analyst estimates of $2.30 billion. During the same period in the previous year, the firm posted $0.40 earnings per share. The firm's revenue was up 35.0% on a year-over-year basis.

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 given a $0.40 dividend. The ex-dividend date is Tuesday, August 18th. This represents a $1.60 annualized dividend and a dividend yield of 3.0%. Jefferies Financial Group's payout ratio is currently 54.05%.

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

More Jefferies Financial Group News

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

• Positive Sentiment: Jefferies delivered sharply higher quarterly profit and revenue, with net earnings more than doubling and total net revenues rising 35% year over year, helped by stronger investment banking and equities results. Jefferies Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The board approved a $250 million share repurchase program, signaling confidence in the company’s valuation and supporting shareholder returns. RTT News buyback report
• Positive Sentiment: Jefferies also announced a quarterly dividend of $0.40 per share, reinforcing income appeal for investors. Seeking Alpha dividend article
• Neutral Sentiment: Analysts at Jefferies remained active on other names, including a Buy view on Salesforce and Chemring, which does not directly affect JEF but reflects ongoing brokerage and research activity. Jefferies Maintains a Buy on Salesforce
• Negative Sentiment: Despite the stronger headline results, Jefferies missed consensus estimates for both EPS and revenue, which is likely weighing on the stock. Jefferies Q2 Financial Results

Analyst Ratings Changes

A number of brokerages have weighed in on JEF. Loop Capital set a $60.00 price target on shares of Jefferies Financial Group in a research note on Monday, June 8th. UBS Group lowered shares of Jefferies Financial Group from a "buy" rating to a "neutral" rating and raised their price objective for the stock from $59.00 to $67.00 in a report on Thursday, June 18th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Jefferies Financial Group in a research report on Friday, June 5th. Zacks Research upgraded Jefferies Financial Group from a "strong sell" rating to a "hold" rating in a report on Thursday, April 9th. Finally, Oppenheimer set a $83.00 price target on Jefferies Financial Group in a research note on Thursday. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $62.88.

Institutional Trading of Jefferies Financial Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Salomon & Ludwin LLC grew its position in Jefferies Financial Group by 75.0% in the fourth quarter. Salomon & Ludwin LLC now owns 413 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 177 shares in the last quarter. Smithfield Trust Co bought a new stake in Jefferies Financial Group during the 4th quarter worth about $27,000. Elyxium Wealth LLC bought a new stake in Jefferies Financial Group during the 4th quarter worth about $28,000. Nvwm LLC acquired a new position in shares of Jefferies Financial Group during the 4th quarter worth about $31,000. Finally, Ramirez Asset Management Inc. bought a new position in shares of Jefferies Financial Group in the 4th quarter valued at about $31,000. 60.88% of the stock is currently owned by institutional investors and hedge funds.

Jefferies Financial Group Price Performance

The company has a debt-to-equity ratio of 1.87, a quick ratio of 1.04 and a current ratio of 1.04. The company has a fifty day moving average price of $53.28 and a two-hundred day moving average price of $53.34. The company has a market cap of $11.07 billion, a P/E ratio of 18.29 and a beta of 1.54.

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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