Raymond James Financial Sees Strong Performance Amid Market Challenges
Financial Services Firm Capitalizes on Investment Growth
With a market cap of $31.1 billion, Saint Petersburg, Florida-based Raymond James Financial, Inc. (RJF) stands as a diversified financial holding company. It provides a broad range of financial services throughout the United States, Canada, and Europe. RJF’s subsidiaries offer investment banking, asset management, brokerage, banking services, and support for custodial, trading, and research functions.
Firms valued at $10 billion or more are recognized as “large-cap” stocks, and Raymond James Financial meets this designation. RJF maximizes its expertise through wholly-owned subsidiaries like Raymond James & Associates, Inc. and Raymond James Bank, N.A.
Although the firm has seen an 11.1% drop from its 52-week high of $171.38 achieved in November, shares have increased 25.8% over the last three months, exceeding the 5.4% return of the Financial Select Sector SPDR Fund (XLF) during the same period.
Long-term, RJF stock has risen by 36.7% year-to-date, outperforming XLF’s 26.7% increase. Moreover, RJF shares have appreciated by 36.8% over the past 52 weeks, compared to XLF’s 27.7% return.
Since late August, RJF has consistently traded above its 50-day and 200-day moving averages, signaling a positive market sentiment.
Shares of RJF climbed 7.3% following the company’s Q4 earnings report released on October 23, showcasing a record-breaking performance. The firm posted adjusted earnings of $2.95 per share, exceeding expectations, and achieved record quarterly net revenue of $3.5 billion—a 13% increase from the previous year. This growth was fueled by substantial gains in investment banking and asset management revenues. Additionally, client assets under administration and financial assets under management reached all-time highs, both growing 25% year-over-year, an indication of strong market activity and effective client retention strategies. Furthermore, RJF’s plans to return $1.3 billion in capital to shareholders in fiscal 2024, alongside a robust pipeline in merger and acquisition advisory, bolster confidence in its future prospects.
However, RJF has not kept pace with its competitor, Stifel Financial Corp. (SF), which has surged by 52.5% over the past year and nearly 48% year-to-date.
Despite RJF’s strong performance relative to the broader financial sector, analysts maintain a cautiously optimistic outlook on its future. The stock currently holds a consensus rating of “Moderate Buy” among the 14 analysts monitoring it, and as of now, RJF is trading below its mean price target of $154.92.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
