Brian P. Friedman, President of Jefferies Financial Group Inc. (NYSE:JEF), recently sold 247,326 shares of common stock, totaling approximately $16.1 million. The shares were sold at a weighted average price of $65.1986, with transaction prices ranging from $64.545 to $65.965 per share. Following the sale, Friedman retains ownership of 1,632,277 shares through his trust. Additionally, he holds shares indirectly through various entities, including an LLC, a family limited partnership, and a profit-sharing plan.
In other recent news, Jefferies Group recorded third-quarter earnings and revenue that fell short of analyst expectations, reporting net earnings of $167 million or $0.75 per diluted share, lower than the projected $0.77 per share. The company's revenue was reported at $1.68 billion, falling short of the anticipated $1.74 billion. Despite these results, Jefferies' Investment Banking segment saw a robust performance with net revenues surging 47% year-over-year to $949 million, driven by record quarterly advisory revenues of $592 million. For the fiscal year, Jefferies generated net earnings of $463 million, or $2.06 per diluted share, on revenues of $5.08 billion.
Simultaneously, Morgan Stanley (NYSE:MS) maintained an Equalweight rating on Jefferies Group, while increasing the price target to $67 from $64. This adjustment comes after Jefferies' core businesses showed significant growth, with the Advisory services witnessing a 77% increase, Equities surging by 42%, and Fixed Income, Currency, and Commodities (FICC) trading growing by 13%. Morgan Stanley's revised price target signifies confidence in Jefferies Group's continued growth and performance.
These recent developments also include Jefferies Group's board declaring a quarterly cash dividend of $0.35 per share. As these updates unfold, investors and stakeholders can consider these facts when assessing the company's current market position and future potential.
InvestingPro Insights
While Brian P. Friedman's recent stock sale might raise eyebrows, a closer look at Jefferies Financial Group Inc. (NYSE:JEF) reveals a company with strong financial footing and positive market performance. According to InvestingPro data, JEF's market capitalization stands at $13.31 billion, reflecting its significant presence in the financial sector.
The company's stock has shown remarkable strength, with a 51.86% price total return over the past six months and an impressive 106.55% return over the last year. This robust performance aligns with an InvestingPro Tip indicating that JEF has experienced a "large price uptick over the last six months."
Jefferies' financial health appears solid, with revenue growth of 26.5% in the last twelve months and a strong gross profit margin of 77.98%. The company's commitment to shareholder value is evident in its dividend policy. An InvestingPro Tip highlights that JEF "has maintained dividend payments for 15 consecutive years," with a current dividend yield of 2.17%.
For investors considering JEF's valuation, the stock's P/E ratio of 26.98 should be viewed in context with its growth prospects. An InvestingPro Tip suggests that JEF is "trading at a low P/E ratio relative to near-term earnings growth," which could indicate potential upside for the stock.
These insights offer a broader perspective on Jefferies' financial position and market performance, complementing the information about the insider sale. Investors seeking a more comprehensive analysis can access additional tips and data through InvestingPro, which offers 11 more tips for JEF beyond those mentioned here.
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