PJT Partners (NYSE:PJT) Shares Down 7.6% - Here's Why

Key Points

• PJT Partners shares fell 7.6% in midday trading, slipping to about $155.82 from a prior close of $168.56 on volume below average.
• Despite the stock drop, the company recently beat quarterly earnings expectations, reporting $1.54 EPS versus $1.51 expected and revenue of $418.2 million, up 28.9% year over year.
• Analyst sentiment is mixed: PJT has an average “Hold” rating with a consensus price target of $173.67, while some firms have raised targets or upgraded the stock recently.

PJT Partners Inc. (NYSE:PJT - Get Free Report)'s share price dropped 7.6% during mid-day trading on Wednesday . The stock traded as low as $156.41 and last traded at $155.82. 188,595 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 377,932 shares. The stock had previously closed at $168.56.

Analyst Ratings Changes

Several research firms recently commented on PJT. Weiss Ratings reiterated a "hold (c)" rating on shares of PJT Partners in a research report on Friday, May 29th. The Goldman Sachs Group raised shares of PJT Partners from a "neutral" rating to a "buy" rating and set a $170.00 price target for the company in a research note on Wednesday, April 1st. UBS Group lifted their price target on shares of PJT Partners from $160.00 to $162.00 and gave the stock a "neutral" rating in a report on Wednesday. Zacks Research raised shares of PJT Partners from a "strong sell" rating to a "hold" rating in a research note on Monday, June 29th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of PJT Partners from $166.00 to $175.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, PJT Partners has an average rating of "Hold" and an average price target of $173.67.

PJT Partners Stock Down 7.6%

The stock has a 50 day moving average of $155.81 and a 200 day moving average of $157.32. The company has a market capitalization of $4.02 billion, a price-to-earnings ratio of 22.71 and a beta of 0.85.

PJT Partners (NYSE:PJT - Get Free Report) last released its earnings results on Tuesday, April 28th. The financial services provider reported $1.54 earnings per share for the quarter, beating analysts' consensus estimates of $1.51 by $0.03. PJT Partners had a net margin of 10.32% and a return on equity of 32.00%. The business had revenue of $418.20 million during the quarter, compared to the consensus estimate of $409.38 million. During the same quarter in the prior year, the firm posted $1.05 EPS. The company's revenue for the quarter was up 28.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that PJT Partners Inc. will post 7.5 EPS for the current fiscal year.

PJT Partners Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Wednesday, June 3rd were given a dividend of $0.25 per share. The ex-dividend date was Wednesday, June 3rd. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. PJT Partners's dividend payout ratio is 14.58%.

Insiders Place Their Bets

In related news, CFO Helen T. Meates sold 8,000 shares of PJT Partners stock in a transaction on Friday, May 1st. The shares were sold at an average price of $153.19, for a total transaction of $1,225,520.00. Following the completion of the transaction, the chief financial officer owned 58,466 shares of the company's stock, valued at $8,956,406.54. This trade represents a 12.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel David Adam Travin sold 3,000 shares of the company's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $152.43, for a total transaction of $457,290.00. Following the sale, the general counsel directly owned 2,052 shares in the company, valued at $312,786.36. This trade represents a 59.38% decrease in their position. The SEC filing for this sale provides additional information. 10.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in PJT. Balefire LLC acquired a new stake in PJT Partners during the second quarter worth approximately $220,000. Versant Capital Management Inc lifted its stake in PJT Partners by 73.3% in the second quarter. Versant Capital Management Inc now owns 234 shares of the financial services provider's stock valued at $35,000 after buying an additional 99 shares during the period. Prospect Capital Advisors LLC lifted its stake in PJT Partners by 2.3% in the first quarter. Prospect Capital Advisors LLC now owns 98,230 shares of the financial services provider's stock valued at $13,725,000 after buying an additional 2,200 shares during the period. Janus Henderson Group PLC lifted its stake in PJT Partners by 49.3% in the first quarter. Janus Henderson Group PLC now owns 181,980 shares of the financial services provider's stock valued at $25,448,000 after buying an additional 60,062 shares during the period. Finally, Arkadios Wealth Advisors boosted its holdings in shares of PJT Partners by 11.8% during the 1st quarter. Arkadios Wealth Advisors now owns 23,531 shares of the financial services provider's stock worth $3,288,000 after buying an additional 2,476 shares in the last quarter. 89.23% of the stock is owned by institutional investors and hedge funds.

About PJT Partners

PJT Partners is a global advisory-focused investment bank that delivers strategic advisory, restructuring and special situations, and capital solutions to corporations, partnerships, and governments. The firm operates through three primary business segments: Strategic Advisory, which covers mergers and acquisitions, shareholder advisory, and capital markets advisory; Restructuring and Special Situations, which provides advice on debt and liability management, distressed mergers and acquisitions, and financial restructurings; and Park Hill, the firm's dedicated capital-raising and secondary advisory business for private equity, real estate, hedge funds, and infrastructure.

The Strategic Advisory practice at PJT Partners assists clients with complex transactions such as cross-border mergers, spin-offs, divestitures, and takeover defenses, drawing on deep industry expertise and global reach.

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