Jefferies Financial Group Inc. (NYSE: JEF) stock jumped 0.61% on Friday to $33.02 against a previous-day closing price of $32.82. With 1.01 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.44 million shares. During the session, the Financial Conglomerates company that operates in wider Financial sector, reached to the highest price of $33.12 whereas the lowest price it dropped to was $32.75. The 52-week range on JEF shows that it touched its highest point at $44.47 and its lowest point at $25.88 during that stretch. It currently has a 1-year price target of $34.25. With its current market cap of 7.51 billion, JEF has annualized dividend of $1.20 while the current yield stands at 3.63%. Beta for the stock currently stands at 1.41.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of JEF was up-trending over the past week, with a rise of 2.07%, but this was up by 19.12% over a month. Three-month performance dropped to -0.90% while six-month performance fell -10.88%. The stock lost -1.05% in the past year, while it has lost -14.90% so far this year. A look at the trailing 12-month EPS for JEF yields 4.41 with Next year EPS estimates of 3.70. For the next quarter, that number is 0.59. This implies an EPS growth rate of 131.90% for this year and 24.41% for next year. EPS is expected to grow by 18.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 87.40%.
Float and Shares Shorts:
At present, 249.14 million JEF shares are outstanding with a float of 171.03 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.62 million, which was 2.42% higher than short shares on Jun 14, 2022. In addition to Mr. Joseph Saul Steinberg as the firm’s Co-Founder & Chairman, Mr. Richard Brian Handler serves as its CEO & Director.
Through their ownership of 69.67% of JEF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 37.27% of JEF, in contrast to 33.95% held by mutual funds. Shares owned by individuals account for 20.11%. As the largest shareholder in JEF with 8.57% of the stake, The Vanguard Group, Inc. holds 20,520,015 shares worth 20,520,015. A second-largest stockholder of JEF, BlackRock Fund Advisors, holds 16,570,232 shares, controlling over 6.92% of the firm’s shares. Sumitomo Mitsui Banking Corp. is the third largest shareholder in JEF, holding 10,500,000 shares or 4.38% stake. With a 2.47% stake in JEF, the First Trust Rising Dividend Achie is the largest stakeholder. A total of 5,922,240 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.30% of JEF stock, is the second-largest Mutual Fund holder. It holds 5,518,542 shares valued at 152.42 million. Vanguard Total Stock Market Index holds 2.06% of the stake in JEF, owning 4,942,605 shares worth 136.51 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for JEF since 5 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With JEF analysts setting a high price target of $46.00 and a low target of $28.00, the average target price over the next 12 months is $35.25. Based on these targets, JEF could surge 39.31% to reach the target high and fall by -15.2% to reach the target low. Reaching the average price target will result in a growth of 6.75% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. JEF will report FY 2022 earnings on 01/11/2023. Analysts have provided yearly estimates in a range of $3.21 being high and $2.65 being low. For JEF, this leads to a yearly average estimate of $2.95. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Jefferies Financial Group Inc. surprised analysts by -$0.06 when it reported $0.45 EPS against a consensus estimate of $0.51. The surprise factor in the prior quarter was $0.34. Based on analyst estimates, the high estimate for the next quarter is $0.95 and the low estimate is $0.39. The average estimate for the next quarter is thus $0.58.
Summary of Insider Activity:
Insiders traded JEF stock several times over the past three months with 12 Buys and 0 Sells. In these transactions, 158,684 shares were bought while 0 shares were sold. The number of buy transactions has increased to 47 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 4,147,041 while 4,824,559 shares were sold.