Raymond James Financial (NYSE:RJF) Releases Quarterly Earnings Results, Beats Estimates By $0.33 EPS

Raymond James Financial (NYSE:RJF) posted its quarterly earnings results on Wednesday. The financial services provider reported $3.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.26 by $0.33, FiscalAI reports. The firm had revenue of $4.27 billion during the quarter, compared to analyst estimates of $4.20 billion. Raymond James Financial had a return on equity of 19.07% and a net margin of 13.57%.

Here are the key takeaways from Raymond James Financial’s conference call:

• Record fourth-quarter and fiscal-year results: Net revenue reached $4.27 billion and adjusted EPS was $3.59, while adjusted pre-tax margin came in at 21.3%, above the approximately 20% target.
• Private Client Group momentum remained strong, with client assets under administration up 12% year over year to $1.87 trillion and domestic net new assets rising 88% to more than $98 billion. Record advisor recruiting and strong retention support the company’s growth outlook.
• Capital Markets benefited from stronger M&A and advisory activity, producing record fiscal-year investment banking revenue above $1.1 billion. Management said the pipeline remains strong and that sponsor activity is re-engaging, although quarterly results may remain volatile.
• Bank loans reached a record $57.5 billion, led by 32% year-over-year growth in securities-based lending, while credit quality remained strong. Excess capital capacity and the planned resumption of approximately $400 million in quarterly share repurchases provide support for shareholder returns.
• Management expects fiscal 2027 non-compensation expenses to rise approximately 8% to $2.5 billion, with recruiting and technology investments continuing to pressure near-term margins. Higher-cost deposits also weighed on net interest margin, although management expects aggregate net interest income and third-party bank fees to increase about 1% sequentially next quarter.

Raymond James Financial Stock Performance

RJF traded down $0.78 during mid-day trading on Wednesday, reaching $157.34. 1,782,914 shares of the company traded hands, compared to its average volume of 1,345,436. The stock has a market capitalization of $30.27 billion, a P/E ratio of 13.72, a P/E/G ratio of 0.81 and a beta of 0.94. The company has a quick ratio of 1.03, a current ratio of 1.06 and a debt-to-equity ratio of 0.43. The company’s fifty day moving average price is $165.67 and its 200-day moving average price is $160.43. Raymond James Financial has a 52-week low of $138.82 and a 52-week high of $182.73.

Raymond James Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were given a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend was Thursday, October 1st. Raymond James Financial’s payout ratio is 18.83%.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. TD Cowen dropped their target price on shares of Raymond James Financial from $161.00 to $160.00 and set a “hold” rating on the stock in a research note on Tuesday, September 1st. Barclays reissued an “overweight” rating and set a $197.00 price target (up from $196.00) on shares of Raymond James Financial in a research report on Wednesday, October 7th. Bank of America reissued a “neutral” rating and set a $198.00 price target (up from $196.00) on shares of Raymond James Financial in a research report on Monday, October 5th. Truist Financial decreased their price objective on shares of Raymond James Financial from $188.00 to $166.00 and set a “hold” rating for the company in a report on Tuesday, October 13th. Finally, Argus upped their price objective on Raymond James Financial from $178.00 to $196.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Five investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $178.67.

Insider Buying and Selling at Raymond James Financial

In other news, insider Bella Allaire sold 7,500 shares of the firm’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $177.60, for a total value of $1,332,000.00. Following the transaction, the insider directly owned 46,086 shares in the company, valued at $8,184,873.60. This trade represents a 14.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.58% of the stock is owned by insiders.

About Raymond James Financial

Raymond James Financial, Inc is a diversified financial services company serving individuals, corporations, municipalities and institutions. Through its subsidiaries and affiliated advisors, the company provides wealth management, investment advisory, financial planning, securities brokerage, banking and capital markets services.

The company’s Private Client Group offers investment management, retirement planning, estate planning and other financial planning services through a network of financial advisors.