Stifel Financial (NYSE:SF) Reaches New 52-Week Low - Should You Sell?

Key Points

• Stifel Financial shares fell 3.6% to a new 52-week low of $67.67, well below their 50-day and 200-day moving averages.
• Analysts have recently reduced price targets, but the consensus remains a “Moderate Buy” with an average target of $86.08, implying potential upside from current levels.
• The company beat quarterly earnings and revenue estimates, while maintaining a $0.34 quarterly dividend yielding about 2.0%; institutional investors own approximately 82% of the stock.

Stifel Financial Corporation (NYSE:SF - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $67.67 and last traded at $67.7790, with a volume of 332,204 shares trading hands. The stock had previously closed at $69.70.

Analyst Upgrades and Downgrades

Several research analysts have commented on SF shares. JPMorgan Chase & Co. lowered their target price on Stifel Financial from $86.00 to $82.00 and set a "neutral" rating for the company in a research note on Tuesday, October 6th. BMO Capital Markets lowered their target price on Stifel Financial from $85.00 to $75.00 and set a "market perform" rating for the company in a report on Tuesday, October 6th. UBS Group reaffirmed a "buy" rating and issued a $84.00 price objective (down from $90.00) on shares of Stifel Financial in a research note on Wednesday, October 7th. Capital One Financial set a $75.00 price objective on shares of Stifel Financial in a research report on Tuesday, October 6th. Finally, TD Cowen reduced their price objective on shares of Stifel Financial from $84.00 to $78.00 and set a "hold" rating for the company in a report on Monday. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $86.08.

Stifel Financial Stock Down 3.6%

The company has a fifty day simple moving average of $77.60 and a 200 day simple moving average of $76.16. The company has a quick ratio of 0.83, a current ratio of 0.88 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $10.15 billion, a P/E ratio of 12.01 and a beta of 1.01.

Stifel Financial (NYSE:SF - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The financial services provider reported $1.42 EPS for the quarter, beating analysts' consensus estimates of $1.33 by $0.09. The company had revenue of $1.45 billion during the quarter, compared to analysts' expectations of $1.42 billion. Stifel Financial had a return on equity of 19.22% and a net margin of 16.11%. Stifel Financial's revenue for the quarter was up 13.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.71 earnings per share. On average, equities analysts expect that Stifel Financial Corporation will post 6.27 EPS for the current fiscal year.

Stifel Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were issued a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Tuesday, September 1st. Stifel Financial's payout ratio is presently 24.33%.

Insider Activity

In related news, Director Maryam Brown sold 4,700 shares of the firm's stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $79.20, for a total transaction of $372,240.00. Following the completion of the transaction, the director owned 5,729 shares of the company's stock, valued at $453,736.80. This trade represents a 45.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.36% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Requisite Capital Management LLC acquired a new position in shares of Stifel Financial in the second quarter worth $5,520,000. Fifth Third Bancorp raised its position in Stifel Financial by 430.4% in the first quarter. Fifth Third Bancorp now owns 73,993 shares of the financial services provider's stock worth $5,470,000 after purchasing an additional 60,042 shares in the last quarter. WINTON GROUP Ltd boosted its stake in shares of Stifel Financial by 21.4% in the 2nd quarter. WINTON GROUP Ltd now owns 299,748 shares of the financial services provider's stock valued at $20,913,000 after purchasing an additional 52,778 shares in the last quarter. Bank of America Corp DE bought a new position in shares of Stifel Financial in the second quarter worth about $123,551,000. Finally, Squarepoint Ops LLC lifted its stake in shares of Stifel Financial by 716.1% during the second quarter. Squarepoint Ops LLC now owns 585,834 shares of the financial services provider's stock valued at $40,874,000 after acquiring an additional 514,052 shares during the period. 82.01% of the stock is currently owned by institutional investors and hedge funds.

Stifel Financial Company Profile

Stifel Financial Corp. is a diversified financial services holding company headquartered in St. Louis, Missouri. Through its principal subsidiary, Stifel, Nicolaus & Company, Incorporated, the company provides wealth management, investment banking, institutional brokerage, equity and fixed-income research, securities trading, and asset management services.

Its wealth management business serves individual investors, families, businesses, and institutions through financial planning, investment advisory, brokerage, banking, and related services.

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