Raymond James Financial Faces Stock Pressure Despite Earnings Growth
Raymond James Financial, Inc. (RJF), located in Saint Petersburg, Florida, is a well-rounded financial services firm. The company provides private client groups, capital markets, asset management, banking, and diverse other services across the United States, Canada, and Europe. With a market capitalization of $30 billion, RJF offers custodial, trading, research, and essential back-office support services.
As a company with a valuation exceeding $10 billion, RJF is classified among “large-cap stocks.” It enjoys a broad customer base that includes retail and institutional clients, as well as offerings in corporate and retail banking and trust services.
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Despite its strong position, the stock has experienced a decline of 18.7% from its 52-week high of $174.32, which was reached on January 29. In the last three months, RJF has dropped 8.6%, underperforming the SPDR S&P Capital Markets ETF (KCE), which fell 6.6% in the same period.
On a brighter note, RJF has surged 14% over the past six months and 15.5% over the last 52 weeks. For comparison, KCE has increased by 3.2% over the past six months and 19.5% over the past year.
The stock has been trading above its 200-day moving average since mid-September but has not surpassed its 50-day moving average since mid-February.
Following its Q1 earnings release on January 29, RJF’s stock saw a slight increase. The earnings report showcased a 17% rise in net revenues, totaling $3.5 billion, largely fueled by increased asset management fees and investment banking revenues. Additionally, earnings per share (EPS) stood at $2.93, exceeding Wall Street expectations by 6.6%.
In contrast, RJF’s competitor, Jefferies Financial Group Inc. (JEF), has declined 4.7% over the past six months but has outperformed RJF in the long term, with shares increasing by 32% over the past year.
Looking ahead, analysts express cautious optimism regarding RJF. The stock holds a consensus rating of “Moderate Buy” from 15 analysts, with a mean price target of $176.28. This reflects a potential upside of 24.4% from its current market price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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