Jefferies Financial Group (NYSE:JEF) Shares Gap Down – Here’s Why

Jefferies Financial Group Inc. (NYSE:JEF) shares gapped down before the market opened on Thursday . The stock had previously closed at $64.67, but opened at $59.54. Jefferies Financial Group shares last traded at $60.7430, with a volume of 773,266 shares trading hands.

Key Jefferies Financial Group News

Here are the key news stories impacting Jefferies Financial Group this week:

• Positive Sentiment: Q4 results beat adjusted estimates: Jefferies reported EPS of $0.96 (vs. $0.83 consensus) and revenue of $2.07B (vs. $2.01B), showing revenue growth and strength in dealmaking and underwriting. Jefferies Announces Fourth-Quarter 2025 Financial Results
• Positive Sentiment: Management highlights a strong 2025 rebound and strategic alliance with SMBC in its annual shareholder letter, supporting medium‑term earnings recovery. Jefferies Highlights Strong 2025 Rebound and SMBC Alliance
• Neutral Sentiment: Dividend declared: Jefferies announced a $0.40 quarterly dividend (ex‑dividend Feb 17), implying a ~2.5% yield — supportive for income investors but modest in size. (Company filing)
• Neutral Sentiment: Analyst/industry activity from Jefferies (coverage notes and ratings on other companies) is ongoing but does not directly change JEF fundamentals. Computacenter: Undervalued Buy
• Negative Sentiment: Investor litigation inquiry: Law firm Pomerantz announced an investigation into Jefferies on behalf of investors — such probes can raise litigation risk and increase short‑term selling pressure. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Jefferies Financial Group Inc. – JEF
• Negative Sentiment: Charge related to First Brands hit profitability: Jefferies took an approximately $30M charge tied to First Brands, which reduced GAAP EPS and was cited in media coverage as weighing on quarterly results. This specific markdown and related bankruptcy/dispute coverage add near‑term headline risk. Jefferies takes US$30 million hit on First Brands as profit drops First Brands Founder Says Jefferies Is Withholding Documents
• Negative Sentiment: Reputational/legal headlines: An ex‑Jefferies banker’s UK insider‑trading case (plea not guilty) has surfaced in media reports, which may contribute to investor caution around firm governance and compliance. Ex-Jefferies banker pleads not guilty to UK insider trading charge – report
• Negative Sentiment: Street reaction highlights costs: Coverage summarizing the quarter notes that higher expenses and the First Brands-related markdown explain why shares fell despite the revenue and adjusted‑EPS beat. JEF Stock Falls 3.3% Despite Y/Y Increase in Q4 Earnings & Revenues

Analyst Upgrades and Downgrades

JEF has been the subject of several research reports. Capital One Financial set a $55.00 price target on shares of Jefferies Financial Group in a research report on Friday, October 17th. Weiss Ratings restated a “hold (c-)” rating on shares of Jefferies Financial Group in a research report on Monday, December 29th. The Goldman Sachs Group decreased their price target on shares of Jefferies Financial Group from $84.00 to $74.00 and set a “buy” rating on the stock in a research report on Tuesday, October 14th. Zacks Research cut shares of Jefferies Financial Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 1st. Finally, Oppenheimer upped their price objective on Jefferies Financial Group from $81.00 to $97.00 and gave the stock an “outperform” rating in a research note on Thursday, December 11th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $72.71.

Jefferies Financial Group Price Performance

The stock has a 50 day simple moving average of $58.77 and a 200-day simple moving average of $59.21. The firm has a market cap of $12.38 billion, a PE ratio of 20.56 and a beta of 1.51. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 1.76.

Jefferies Financial Group (NYSE:JEF) last released its earnings results on Wednesday, January 7th. The financial services provider reported $0.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.13. The firm had revenue of $2.07 billion during the quarter, compared to analysts’ expectations of $2.01 billion. Jefferies Financial Group had a return on equity of 7.25% and a net margin of 7.40%.The firm’s revenue was up 5.7% on a year-over-year basis. During the same quarter last year, the business posted $0.91 earnings per share. Equities analysts anticipate that Jefferies Financial Group Inc. will post 4.41 earnings per share for the current fiscal year.

Jefferies Financial Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Tuesday, February 17th will be given a dividend of $0.40 per share. The ex-dividend date is Tuesday, February 17th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.7%. Jefferies Financial Group’s dividend payout ratio is currently 54.98%.

Institutional Investors Weigh In On Jefferies Financial Group

Several large investors have recently made changes to their positions in the company. Root Financial Partners LLC purchased a new position in Jefferies Financial Group during the 3rd quarter valued at approximately $30,000. Chilton Capital Management LLC purchased a new stake in shares of Jefferies Financial Group during the 3rd quarter worth approximately $36,000. Rothschild Investment LLC boosted its position in shares of Jefferies Financial Group by 34.7% during the 3rd quarter. Rothschild Investment LLC now owns 741 shares of the financial services provider’s stock valued at $48,000 after acquiring an additional 191 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Jefferies Financial Group by 159.3% in the second quarter. EverSource Wealth Advisors LLC now owns 892 shares of the financial services provider’s stock valued at $49,000 after purchasing an additional 548 shares in the last quarter. Finally, Bessemer Group Inc. grew its holdings in shares of Jefferies Financial Group by 48.8% in the second quarter. Bessemer Group Inc. now owns 912 shares of the financial services provider’s stock valued at $50,000 after purchasing an additional 299 shares in the last quarter. 60.88% of the stock is owned by institutional investors.

About Jefferies Financial Group

Jefferies Financial Group Inc is a diversified financial services company that provides a range of investment banking, capital markets and asset management services to corporations, governments and institutional investors worldwide. Through its core platform, Jefferies offers advisory services for mergers and acquisitions, debt and equity underwriting, restructuring and recapitalization. The firm also operates a global sales and trading business covering equities, fixed income and foreign exchange products, complemented by equity research and macroeconomic analysis.

In addition to its capital markets franchise, Jefferies maintains a growing asset management division that delivers customized investment solutions across public and private markets.