Jefferies Financial Group (NYSE:JEF) Shares Gap Down Following Weak Earnings

Jefferies Financial Group Inc. (NYSE:JEF - Get Free Report)'s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $60.29, but opened at $54.28. Jefferies Financial Group shares last traded at $55.35, with a volume of 1,019,138 shares traded.

The financial services provider reported $0.60 EPS for the quarter, missing the consensus estimate of $0.88 by ($0.28). Jefferies Financial Group had a return on equity of 7.92% and a net margin of 10.57%. The business had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.93 billion. During the same quarter last year, the firm posted $0.87 earnings per share. Jefferies Financial Group's revenue was down 8.4% compared to the same quarter last year.

Jefferies Financial Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 29th. Investors of record on Monday, May 19th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 3.03%. The ex-dividend date is Monday, May 19th. Jefferies Financial Group's dividend payout ratio is presently 55.36%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Oppenheimer lowered shares of Jefferies Financial Group from an "outperform" rating to a "market perform" rating in a research report on Wednesday, March 19th. The Goldman Sachs Group set a $75.00 price objective on Jefferies Financial Group in a research note on Wednesday, March 5th. Finally, Morgan Stanley cut their target price on Jefferies Financial Group from $81.00 to $75.00 and set an "overweight" rating on the stock in a research report on Thursday.

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Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Hemington Wealth Management boosted its stake in Jefferies Financial Group by 71.8% in the 4th quarter. Hemington Wealth Management now owns 335 shares of the financial services provider's stock worth $26,000 after purchasing an additional 140 shares during the period. V Square Quantitative Management LLC purchased a new stake in shares of Jefferies Financial Group in the fourth quarter valued at $27,000. Stephens Consulting LLC purchased a new stake in shares of Jefferies Financial Group in the fourth quarter valued at $29,000. Wilmington Savings Fund Society FSB acquired a new stake in shares of Jefferies Financial Group in the third quarter worth $32,000. Finally, GAMMA Investing LLC grew its holdings in shares of Jefferies Financial Group by 158.3% during the fourth quarter. GAMMA Investing LLC now owns 514 shares of the financial services provider's stock valued at $40,000 after buying an additional 315 shares in the last quarter. 60.88% of the stock is owned by hedge funds and other institutional investors.

Jefferies Financial Group Stock Up 1.0 %

The business has a fifty day moving average price of $66.53 and a two-hundred day moving average price of $69.56. The firm has a market cap of $10.88 billion, a PE ratio of 17.66 and a beta of 1.37. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07.

Jefferies Financial Group Company Profile

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.