Raymond James (NYSE:RJF) Stock Price Down 6.9% After Earnings Miss

Raymond James (NYSE:RJF) fell 6.9% 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. 612,670 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 1,046,834 shares. The stock had previously closed at $127.54.

The financial services provider reported $2.31 earnings per share for the quarter, missing analysts’ consensus estimates of $2.32 by ($0.01). The firm had revenue of $3.12 billion during the quarter, compared to analyst estimates of $3.15 billion. Raymond James had a return on equity of 18.24% and a net margin of 12.72%. The firm’s revenue was up 8.6% on a year-over-year basis. During the same period last year, the business earned $2.03 EPS.

Raymond James Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 15th. Stockholders of record on Monday, April 1st were given a dividend of $0.45 per share. The ex-dividend date was Thursday, March 28th. This represents a $1.80 annualized dividend and a dividend yield of 1.48%. Raymond James’s dividend payout ratio is presently 21.77%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $116.00 target price (down previously from $125.00) on shares of Raymond James in a research note on Wednesday, January 3rd. Morgan Stanley lifted their price objective on shares of Raymond James from $113.00 to $123.00 and gave the company an “equal weight” rating in a research note on Tuesday, April 9th. Keefe, Bruyette & Woods decreased their target price on shares of Raymond James from $132.00 to $131.00 and set a “market perform” rating for the company in a research report on Thursday. Bank of America dropped their price target on shares of Raymond James from $145.00 to $141.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, UBS Group reduced their price target on shares of Raymond James from $116.00 to $115.00 and set a “neutral” rating for the company in a research note on Thursday, January 25th. 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, the stock presently has an average rating of “Hold” and a consensus target price of $126.22.

Insider Activity at Raymond James

In other Raymond James news, Director Art A. Garcia purchased 879 shares of the firm’s stock in a transaction on Friday, February 9th. The shares were purchased at an average price of $112.30 per share, for a total transaction of $98,711.70. Following the completion of the transaction, the director now owns 879 shares in the company, valued at approximately $98,711.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, Director Art A. Garcia bought 879 shares of Raymond James stock in a transaction dated Friday, February 9th. The stock was acquired at an average cost of $112.30 per share, with a total value of $98,711.70. Following the completion of the acquisition, the director now directly owns 879 shares in the company, valued at approximately $98,711.70. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Jonathan N. Santelli sold 1,891 shares of Raymond James stock in a transaction dated 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 transaction, the executive vice president now directly owns 21,491 shares in the company, valued at approximately $2,405,057.81. The disclosure for this sale can be found here. Company insiders own 9.74% of the company’s stock.

Institutional Investors Weigh In On Raymond James

Several hedge funds have recently made changes to their positions in RJF. American Century Companies Inc. lifted its holdings in shares of Raymond James by 26.0% in the third quarter. American Century Companies Inc. now owns 165,966 shares of the financial services provider’s stock valued at $16,668,000 after purchasing an additional 34,200 shares in the last quarter. Vaughan Nelson Investment Management L.P. boosted its position in Raymond James by 29.9% during the 4th quarter. Vaughan Nelson Investment Management L.P. now owns 335,385 shares of the financial services provider’s stock worth $37,395,000 after acquiring an additional 77,263 shares during the period. Banque Cantonale Vaudoise grew its stake in Raymond James by 13.3% during the 3rd quarter. Banque Cantonale Vaudoise now owns 2,718 shares of the financial services provider’s stock valued at $273,000 after acquiring an additional 318 shares in the last quarter. Daiwa Securities Group Inc. increased its holdings in shares of Raymond James by 6.0% in the 4th quarter. Daiwa Securities Group Inc. now owns 17,536 shares of the financial services provider’s stock valued at $1,955,000 after purchasing an additional 997 shares during the period. Finally, Operose Advisors LLC lifted its position in shares of Raymond James by 241.3% in the third quarter. Operose Advisors LLC now owns 1,024 shares of the financial services provider’s stock worth $103,000 after purchasing an additional 724 shares in the last quarter. Hedge funds and other institutional investors own 83.83% of the company’s stock.

Raymond James Price Performance

The stock has a market capitalization of $25.47 billion, a PE ratio of 14.74, a P/E/G ratio of 0.89 and a beta of 1.05. The company has a quick ratio of 0.97, a current ratio of 0.99 and a debt-to-equity ratio of 0.37. The stock’s 50-day moving average is $123.10 and its 200 day moving average is $112.50.

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.