Jefferies Financial Group (NYSE:JEF) Shares Cross Below Fifty Day Moving Average - Here's Why

Key Points

• Jefferies shares fell below their 50-day moving average, trading as low as $47.08 and last at $47.37, versus a 50-day average of $47.89.
• Analyst sentiment is mostly cautious: the consensus rating is Hold with an average price target of $56.86, following several target cuts.
• The company announced a quarterly dividend of $0.40 per share, equivalent to $1.60 annually and a 3.4% yield.

Jefferies Financial Group Inc. (NYSE:JEF - Get Free Report) passed below its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $47.89 and traded as low as $47.08. Jefferies Financial Group shares last traded at $47.3710, with a volume of 1,200,480 shares traded.

Analyst Upgrades and Downgrades

A number of research analysts have commented on JEF shares. BMO Capital Markets cut their price target on shares of Jefferies Financial Group from $57.00 to $50.00 and set a "market perform" rating for the company in a research note on Tuesday, September 29th. The Goldman Sachs Group dropped their target price on shares of Jefferies Financial Group from $67.00 to $57.00 and set a "buy" rating for the company in a report on Tuesday, September 29th. UBS Group cut their target price on shares of Jefferies Financial Group from $65.00 to $61.00 and set a "neutral" rating for the company in a research note on Friday, September 11th. Wall Street Zen downgraded shares of Jefferies Financial Group from a "buy" rating to a "hold" rating in a research report on Monday, October 19th. Finally, Capital One Financial set a $50.00 price target on shares of Jefferies Financial Group in a research report on Tuesday, September 29th. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $56.86.

Jefferies Financial Group Stock Performance

The company has a debt-to-equity ratio of 2.09, a current ratio of 1.02 and a quick ratio of 1.02. The stock has a 50-day simple moving average of $47.89 and a 200-day simple moving average of $50.66. The stock has a market cap of $8.96 billion, a P/E ratio of 12.98 and a beta of 1.54.

Jefferies Financial Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Monday, November 16th will be paid a dividend of $0.40 per share. The ex-dividend date is Monday, November 16th. This represents a $1.60 dividend on an annualized basis and a yield of 3.4%. Jefferies Financial Group's payout ratio is currently 43.84%.

Institutional Investors Weigh In On Jefferies Financial Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of Jefferies Financial Group in the second quarter valued at $834,947,000. Dimensional Fund Advisors LP increased its stake in Jefferies Financial Group by 2.2% during the first quarter. Dimensional Fund Advisors LP now owns 2,666,097 shares of the financial services provider's stock valued at $110,015,000 after acquiring an additional 58,585 shares during the period. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Jefferies Financial Group during the second quarter valued at $127,242,000. Bamco Inc. NY acquired a new stake in Jefferies Financial Group in the 2nd quarter valued at $107,044,000. Finally, Freestone Grove Partners LP bought a new stake in shares of Jefferies Financial Group in the second quarter valued at approximately $79,537,000. Institutional investors and hedge funds own 60.88% of the company's stock.

About Jefferies Financial Group

Jefferies Financial Group Inc NYSE: JEF is a diversified financial services company that operates primarily through its investment banking and capital markets subsidiary, Jefferies LLC. The company provides advisory services for mergers and acquisitions, restructuring and other corporate transactions, along with equity and debt underwriting, securities sales and trading, research, and prime brokerage services.

Jefferies also manages and invests capital through asset management and merchant banking activities.

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