Stock of the Day

November 18, 2019

Raymond James (RJF)

$151.34
-$3.73 (-2.4%)
Market Cap: $31.78B

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. The Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance products to their individual clients; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products; and manages and participates in underwritings, merger and acquisition services, and public finance activities. The Asset Management segment engages in the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of Raymond James & Associates, trust services of Raymond James Trust, and other fee-based asset management programs. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, and residential loans. The Other segment engages in private equity activities, including various direct and third party private equity investments; and private equity funds. Raymond James Financial, Inc. was founded in 1962 and is based in St. Petersburg, Florida.

Raymond James Bull Case

Here are some ways that investors could benefit from investing in Raymond James:

  • Raymond James has recently received positive ratings from multiple analysts, with JMP Securities raising their target price to $190.00, indicating strong growth potential.
  • The company reported earnings per share of $2.93, surpassing analysts' expectations, which reflects strong financial performance and operational efficiency.
  • As of the latest trading session, the stock price is $159.63, which is near its 52-week high of $174.32, suggesting strong market confidence in the company's future.
  • Raymond James has a solid market capitalization of approximately $32.62 billion, indicating a stable and established presence in the financial services sector.
  • The company has a favorable price-to-earnings (P/E) ratio of 15.57, which suggests that the stock may be undervalued compared to its earnings, making it an attractive investment opportunity.

Raymond James Bear Case

Investors should be bearish about investing in Raymond James for these reasons:

  • Insider selling has been notable, with insiders selling 64,621 shares worth $10,729,488 over the last three months, which may indicate a lack of confidence in the stock's short-term performance.
  • The stock has experienced a recent decline of 0.5%, which could signal potential volatility and uncertainty in the market.
  • Chevy Chase Trust Holdings LLC reduced its stake by 3.4%, suggesting that some institutional investors may be cautious about the company's future prospects.
  • Despite positive ratings, there is a consensus rating of "Hold" among analysts, indicating that many believe the stock may not see significant growth in the near term.
  • The company has a debt-to-equity ratio of 0.37, which, while relatively low, still indicates that it relies on some level of debt financing, potentially increasing financial risk in adverse market conditions.

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