Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed in the latest SEC filing, a significant insider purchase on December 1, involves RICHARD HANDLER, CEO at Jefferies Financial Gr (NYSE:JEF).
What Happened: In a Form 4 filing on Friday with the U.S. Securities and Exchange Commission, it was disclosed that HANDLER bought 104,016 shares of Jefferies Financial Gr, amounting to a total of $3,602,074.
Tracking the Friday's morning session, Jefferies Financial Gr shares are trading at $35.44, showing a down of 0.0%.
Unveiling the Story Behind Jefferies Financial Gr Jefferies Financial Group Inc is a diversified financial services company. Its business consists of investment banking and capital markets (Jefferies Group), commercial mortgage banking (Berkadia), asset management (Leucadia Asset Management), and online platform for foreign exchange trading (FXCM), a real estate company (Homefed), and vehicle finance (Foursight Capital and Chrome Capital). The company is also involved in other businesses, such as oil and gas exploration, through JETX and Vitesse Energy; automobile dealerships, through Gargadia; fixed wireless broadband services, through Linkem; and gold and silver mining through Golden Queen, among others.
Jefferies Financial Gr's Financial Performance Revenue Growth: Jefferies Financial Gr displayed positive results in 3 months. As of 31 August, 2023, the company achieved a solid revenue growth rate of approximately 11.4%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Evaluating Earnings Performance:
- Gross Margin: The company excels with a remarkable gross margin of 63.89%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Jefferies Financial Gr's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.22.
Valuation Overview:
- Price to Earnings (P/E) Ratio: The P/E ratio of 25.31 is lower than the industry average, implying a discounted valuation for Jefferies Financial Gr's stock.
- Price to Sales (P/S) Ratio: The current P/S ratio of 1.18 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 4.81, Jefferies Financial Gr's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
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Why Insider Activity Matters in Finance While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Understanding Crucial Transaction Codes Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies 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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