Zacks Investment Research cut shares of Raymond James Financial (NYSE:RJF) from a hold rating to a sell rating in a report issued on Wednesday morning.
According to Zacks, “Shares of Raymond James have underperformed the industry in the past three months. Nonetheless, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. While, the company remains well positioned to grow via acquisitions, given its strong liquidity position, elevated expenses mainly due to higher compensation costs and bank loan loss provisions are likely to hurt bottom-line growth in the near term. Also, lack of geographic diversification remains a major concern for the company as it might hamper its financials and limit flexibility, going forward.”
A number of other research analysts also recently issued reports on the company. Credit Suisse Group reiterated an underperform rating and set a $95.00 price objective (up from $82.00) on shares of Raymond James Financial in a research note on Tuesday, January 16th. Wells Fargo reiterated an outperform rating and set a $110.00 price objective (up from $94.00) on shares of Raymond James Financial in a research note on Thursday, January 4th. Buckingham Research boosted their price objective on Raymond James Financial from $113.00 to $117.00 and gave the company a buy rating in a research note on Friday, January 26th. Keefe, Bruyette & Woods reiterated a hold rating and set a $102.00 price objective on shares of Raymond James Financial in a research note on Thursday, January 25th. Finally, ValuEngine upgraded Raymond James Financial from a hold rating to a buy rating in a research note on Wednesday, March 7th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and five have issued a buy rating to the company. The company presently has a consensus rating of Hold and a consensus target price of $96.86.
Raymond James Financial (NYSE:RJF) last announced its quarterly earnings data on Wednesday, January 24th. The financial services provider reported $1.61 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.42 by $0.19. The company had revenue of $1.73 billion during the quarter, compared to the consensus estimate of $1.73 billion. Raymond James Financial had a return on equity of 14.87% and a net margin of 9.00%. The firm’s revenue was up 15.6% on a year-over-year basis. During the same period in the previous year, the company posted $1.07 EPS. sell-side analysts expect that Raymond James Financial will post 6.79 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, April 16th. Investors of record on Monday, April 2nd will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, March 29th. This represents a $1.00 dividend on an annualized basis and a yield of 1.18%. Raymond James Financial’s dividend payout ratio is presently 19.12%.
In related news, COO Dennis W. Zank sold 20,003 shares of the business’s stock in a transaction that occurred on Friday, March 9th. The stock was sold at an average price of $98.63, for a total value of $1,972,895.89. Following the transaction, the chief operating officer now directly owns 150,849 shares of the company’s stock, valued at approximately $14,878,236.87. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Paul D. Allison sold 6,600 shares of the business’s stock in a transaction that occurred on Wednesday, March 14th. The stock was sold at an average price of $96.65, for a total value of $637,890.00. Following the completion of the transaction, the insider now directly owns 21,142 shares in the company, valued at $2,043,374.30. The disclosure for this sale can be found here. Over the last three months, insiders sold 38,878 shares of company stock worth $3,774,080. 10.46% of the stock is owned by insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Cerebellum GP LLC purchased a new position in Raymond James Financial in the 4th quarter worth approximately $129,000. Financial Gravity Companies Inc. purchased a new position in Raymond James Financial in the 4th quarter worth approximately $177,000. Assetmark Inc. lifted its holdings in Raymond James Financial by 478.2% in the 4th quarter. Assetmark Inc. now owns 1,833 shares of the financial services provider’s stock worth $164,000 after purchasing an additional 1,516 shares in the last quarter. Tower Research Capital LLC TRC lifted its holdings in Raymond James Financial by 402.5% in the 4th quarter. Tower Research Capital LLC TRC now owns 1,834 shares of the financial services provider’s stock worth $164,000 after purchasing an additional 1,469 shares in the last quarter. Finally, Squar Milner Financial Services LLC purchased a new position in Raymond James Financial in the 4th quarter worth approximately $205,000. 70.93% of the stock is currently owned by institutional investors.
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Raymond James Financial Company Profile
Raymond James Financial, Inc, a financial holding company, through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, Europe, and internationally. The company operates through Private Client Group, Capital Markets, Asset Management, RJ Bank, and Other segments.
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