Richard B. Handler, the CEO of Jefferies Financial Group Inc. (NYSE:JEF), recently sold 400,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $72.26 per share, with the total transaction amounting to approximately $28.9 million.
After this sale, Handler retains direct ownership of 14,971,288 shares. Additionally, he holds indirect ownership stakes through various trusts and entities, including his 2012 Trust, his spouse's trust, and several LLCs, among others. These holdings collectively account for several hundred thousand additional shares.
The transactions were executed on November 6, 2024, and were documented in a Form 4 filing with the SEC.
In other recent news, Jefferies Group reported third-quarter earnings and revenue that fell short of analyst expectations. The company recorded net earnings of $167 million, equivalent to $0.75 per diluted share, missing the projected $0.77 per share. Revenue was reported at $1.68 billion, lower than the anticipated $1.74 billion. Despite these misses, Jefferies Group saw a robust performance in its Investment Banking segment, with net revenues surging 47% year-over-year to $949 million, fueled by record quarterly advisory revenues of $592 million.
In other developments, Morgan Stanley (NYSE:MS) has increased its price target for Jefferies Group from $64 to $67, maintaining an Equalweight rating. This revision follows a favorable performance by Jefferies' core businesses, including a 77% increase in Advisory services, a 42% surge in Equities, and a 13% growth in Fixed Income, Currency, and Commodities trading.
For the fiscal year, Jefferies Group generated net earnings of $463 million, or $2.06 per diluted share, on revenues of $5.08 billion. The company's board also declared a quarterly cash dividend of $0.35 per share. These are among the recent developments for the company.
InvestingPro Insights
As Richard B. Handler reduces his stake in Jefferies Financial Group Inc. (NYSE:JEF), investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, Jefferies boasts a market capitalization of $14.83 billion, with a price-to-earnings ratio of 26.04 based on the last twelve months as of Q3 2024. This P/E ratio is relatively modest when considering the company's growth prospects.
Notably, Jefferies has demonstrated strong financial performance, with revenue growth of 26.5% over the last twelve months and an impressive 42.42% growth in the most recent quarter. The company's profitability is also solid, with a gross profit margin of 77.98% and an operating income margin of 12.21%.
InvestingPro Tips highlight that Jefferies is expected to see net income growth this year, and the company has maintained dividend payments for 15 consecutive years, signaling financial stability. The stock has also shown significant momentum, with a remarkable 114.48% total return over the past year and is currently trading near its 52-week high.
While Handler's stock sale might raise questions, it's worth noting that Jefferies' fundamentals appear strong. The company's PEG ratio of 0.37 suggests that it may be undervalued relative to its growth potential. For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips for Jefferies, providing a deeper understanding of the company's financial health and market position.
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