Stock of the Day

November 13, 2019

Jefferies Financial Group (JEF)

$52.21
-$0.43 (-0.8%)
Market Cap: $10.03B

About Jefferies Financial Group

Jefferies Financial Group Inc. operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services. The company also offers financing, securities lending, and other prime brokerage services; equities research, sales, and trading services; wealth management services; and online foreign exchange trading services. In addition, it provides investment grade distressed debt securities, U.S. and European government and agency securities, municipal bonds, leveraged loans, emerging markets debt, and interest rate and credit index derivative products; and manages and offers services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.

Today's Trend

Jefferies Financial Group Inc. (NYSE: JEF) shares have decreased, with investor sentiment likely pressured by a newly announced shareholder-investigation notice. The latest news also highlights potential growth in Jefferies’ private-credit business, although most other reports concern research opinions issued by Jefferies rather than developments at JEF itself.

  • Expansion of private-credit platform: Jefferies Credit Partners is reportedly seeking approximately $1.16 billion, or €1 billion, for a fund focused on private-credit investments in the secondary market. The fund could support fee generation and expand Jefferies’ asset-management and alternative-investment operations. Jefferies Credit Partners Is Moving Its Own Loans Into a New Fund
  • Broad research activity reinforces the Jefferies franchise: Jefferies analysts issued recommendations on Nvidia, Indian two-wheeler companies, Emmvee Photovoltaic Power, Turtlemint Fintech, Bajaj Housing Finance, Swiggy, Jupiter Wagons and BSE. These reports may generate advisory and trading visibility for Jefferies, but they do not directly change JEF’s earnings outlook. Jefferies Research and Analyst Reports
  • Shareholder-investigation notice adds legal overhang: Bragar Eagel & Squire said it is investigating Jefferies Financial Group on behalf of shareholders who suffered losses and invited investors to contact the firm. Such announcements can increase headline and litigation risk, even though they do not establish wrongdoing or indicate that a lawsuit will succeed. Bragar Eagel & Squire Investigation of Jefferies Financial Group

The legal headline is the clearest near-term negative catalyst for JEF. Investors may also remain focused on the company’s recent earnings miss, when Jefferies reported quarterly EPS of $1.02 versus the $1.16 consensus estimate and revenue of $2.21 billion versus expectations of $2.30 billion.

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