Stock of the Day

November 18, 2019

Raymond James (RJF)

$146.80
+$3.39 (+2.4%)
Market Cap: $29.67B

About Raymond James

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. The Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance products to their individual clients; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products; and manages and participates in underwritings, merger and acquisition services, and public finance activities. The Asset Management segment engages in the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of Raymond James & Associates, trust services of Raymond James Trust, and other fee-based asset management programs. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, and residential loans. The Other segment engages in private equity activities, including various direct and third party private equity investments; and private equity funds. Raymond James Financial, Inc. was founded in 1962 and is based in St. Petersburg, Florida.

Raymond James Bull Case

Here are some ways that investors could benefit from investing in Raymond James:

  • The current stock price is around $145, reflecting a strong market presence and investor interest.
  • Raymond James has shown a year-over-year revenue increase of 9%, indicating robust growth potential in its financial services sector.
  • The company reported a return on equity of 19.71%, suggesting effective management and profitability in generating returns for shareholders.
  • Recent analyst upgrades have set target prices as high as $177, indicating positive market sentiment and potential for stock appreciation.
  • Institutional ownership stands at 83.83%, which often reflects confidence from large investors in the company's future performance.

Raymond James Bear Case

Investors should be bearish about investing in Raymond James for these reasons:

  • The stock has experienced fluctuations, with a twelve-month high of $174.32 and a low of $104.24, indicating volatility that could concern risk-averse investors.
  • Recent earnings reports showed a slight miss on EPS estimates, which may raise questions about the company's short-term performance.
  • Insider selling activity, such as the recent sale of shares by an insider, could signal potential concerns about the company's future prospects.
  • Market conditions and economic factors could impact the financial services sector, potentially affecting Raymond James' performance.
  • Despite strong institutional ownership, the company has a relatively low insider ownership percentage, which may suggest less alignment between management and shareholder interests.
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