Jefferies Financial Group Inc. (JEF) Is No Stock For Little Old Ladies

Will Jefferies Financial Group Inc. (NYSE:JEF) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed lower on 14 March. The shares dropped -0.25 points or -1.27 percent at $19.47 with a light trade volume of 2.162 million shares. After opening the session at $19.63, the shares went as high as $19.75 and as low as $19.46, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $5.86 billion and now has 301.18 million shares outstanding. Jefferies Financial Group Inc. (JEF) stock has lost -4.93 percent of market value in 21 trading days.

JEF stock has a trailing 3-year beta of 1.37, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.26 a share in the trailing twelve months. The stock’s value has surged 12.15 percent year to date (YTD) against a decline of -19.88 percent in 12 month’s time. The company’s shares still trade -22.33 percent away from its 1-year high of $25.07 and 20.19 percent up from 52-week low of $16.20. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Jefferies Financial Group Inc. (JEF) will probably climb 54.08 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $30-month high price target. This represents a whopping 54.08 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $30, which represents a return potential of 54.08 percent when compared to the closing price of the stock of $19.47 on Thursday, March 14. The lowest price target for the stock is $30 — slightly more than 54.08 percent from JEF’s current share price.

The stock is currently hovering around the first support level of $19.37. Below this, the next support is placed in the zone of $19.27. Till the time, the JEF stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 44.82 on daily chart, which may remain a cause for concern. If the price breaks below $19.27 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $19.66 mark may result into a pull-back move towards $19.85 level.

Shares of Jefferies Financial Group Inc. (JEF) are trading at a P/E ratio of 14.89 times earnings reported for the past 12 months. The industry JEF operates in has an average P/E of 8.14. Its P/E ratio went as low as 6.46X and as high as 68.91 over the 5-year span.Further, it is sporting a 0.83 on the Price-to-Sales ratio. Compare this with the industry average P/S of 417.6. 54.3 percent is the gross profit margin for Jefferies Financial Group Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.