Benzinga - by Benzinga Insights, Benzinga Staff Writer.
RICHARD HANDLER, CEO at Jefferies Financial Gr (NYSE:JEF), reported an insider sell on February 28, according to a new SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, HANDLER sold 90,790 shares of Jefferies Financial Gr. The total transaction value is $3,745,995.
Jefferies Financial Gr shares are trading up 0.46% at $41.59 at the time of this writing on Thursday morning.
About Jefferies Financial Gr Jefferies Financial Group Inc is a diversified financial services company. It has two reportable segments; Investment Banking and Capital Markets which is also the majority revenue generating segment, includes securities, commodities, corporate lending, futures and foreign exchange capital markets activities and its investment banking business, which provides underwriting and financial advisory services to clients across different sectors. The Asset Management reportable business segment provides alternative investment management services to investors in the U.S. and overseas and generates investment income from capital invested in and managed by it or its affiliated asset managers.
Jefferies Financial Gr: A Financial Overview Revenue Growth: Jefferies Financial Gr's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2023, the company achieved a revenue growth rate of approximately 8.9%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Interpreting Earnings Metrics:
- Gross Margin: With a high gross margin of 62.72%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): Jefferies Financial Gr's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.3.
Insights into Valuation Metrics:
- Price to Earnings (P/E) Ratio: Jefferies Financial Gr's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 37.64.
- Price to Sales (P/S) Ratio: The P/S ratio of 1.32 is lower than the industry average, implying a discounted valuation for Jefferies Financial Gr's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 5.09 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
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Why Insider Transactions Are Important Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Transaction Codes Worth Your Attention When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Jefferies Financial Gr's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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