Raymond James (NYSE:RJF) Trading Down 6.9% Following Weak Earnings

Raymond James (NYSE:RJF) dropped 6.9% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $118.27 and last traded at $118.78. Approximately 612,670 shares changed hands during mid-day trading, a decline of 41% from the average daily volume of 1,046,834 shares. The stock had previously closed at $127.54.

The financial services provider reported $2.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.32 by ($0.01). Raymond James had a net margin of 12.81% and a return on equity of 17.95%. The firm had revenue of $3.12 billion for the quarter, compared to analysts’ expectations of $3.15 billion. During the same period last year, the firm posted $2.03 EPS. Raymond James’s revenue was up 8.6% on a year-over-year basis.

Raymond James Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, April 15th. Stockholders of record on Monday, April 1st were paid a $0.45 dividend. The ex-dividend date was Thursday, March 28th. This represents a $1.80 annualized dividend and a dividend yield of 1.51%. Raymond James’s dividend payout ratio (DPR) is presently 22.56%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on RJF. Keefe, Bruyette & Woods cut their target price on shares of Raymond James from $132.00 to $131.00 and set a “market perform” rating on the stock in a research note on Thursday. JPMorgan Chase & Co. upgraded Raymond James from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $110.00 to $135.00 in a research note on Wednesday, January 10th. UBS Group dropped their price target on Raymond James from $116.00 to $115.00 and set a “neutral” rating on the stock in a research report on Thursday, January 25th. Morgan Stanley boosted their price objective on Raymond James from $113.00 to $123.00 and gave the company an “equal weight” rating in a research report on Tuesday, April 9th. Finally, StockNews.com lowered Raymond James from a “buy” rating to a “hold” rating in a research report on Friday, February 9th. Nine research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $124.67.

Insider Activity

In other news, EVP Jonathan N. Santelli sold 1,891 shares of the company’s stock in a transaction on Monday, January 29th. The stock was sold at an average price of $111.91, for a total value of $211,621.81. Following the completion of the sale, the executive vice president now owns 21,491 shares in the company, valued at $2,405,057.81. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other news, EVP Jonathan N. Santelli sold 1,891 shares of the business’s stock in a transaction on Monday, January 29th. The stock was sold at an average price of $111.91, for a total transaction of $211,621.81. Following the sale, the executive vice president now directly owns 21,491 shares of the company’s stock, valued at $2,405,057.81. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Art A. Garcia purchased 879 shares of the firm’s stock in a transaction that occurred on Friday, February 9th. The stock was bought at an average price of $112.30 per share, with a total value of $98,711.70. Following the transaction, the director now directly owns 879 shares in the company, valued at $98,711.70. The disclosure for this purchase can be found here. 9.74% of the stock is owned by insiders.

Institutional Trading of Raymond James

A number of hedge funds have recently modified their holdings of RJF. Wellington Management Group LLP raised its position in Raymond James by 2.2% during the third quarter. Wellington Management Group LLP now owns 11,570,058 shares of the financial services provider’s stock valued at $1,161,981,000 after buying an additional 246,349 shares during the period. Earnest Partners LLC lifted its position in Raymond James by 4.8% in the 3rd quarter. Earnest Partners LLC now owns 2,165,025 shares of the financial services provider’s stock worth $217,433,000 after buying an additional 98,664 shares in the last quarter. AGF Management Ltd. boosted its stake in shares of Raymond James by 5.9% during the 4th quarter. AGF Management Ltd. now owns 2,147,825 shares of the financial services provider’s stock valued at $239,482,000 after buying an additional 120,427 shares during the period. Norges Bank purchased a new position in shares of Raymond James during the 4th quarter valued at $238,830,000. Finally, Northern Trust Corp increased its holdings in Raymond James by 2.5% in the third quarter. Northern Trust Corp now owns 2,082,598 shares of the financial services provider’s stock worth $209,155,000 after buying an additional 51,239 shares during the last quarter. Hedge funds and other institutional investors own 83.83% of the company’s stock.

Raymond James Trading Down 6.8 %

The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.97 and a current ratio of 0.99. The company’s 50 day moving average price is $122.97 and its 200 day moving average price is $112.28. The company has a market cap of $24.84 billion, a price-to-earnings ratio of 14.90, a price-to-earnings-growth ratio of 0.89 and a beta of 1.05.

Raymond James 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.