Jefferies CEO Sells Major Stake Amid Earnings Miss and Market Reactions

Richard B. Handler, CEO of Jefferies Financial Group Inc. (NYSE: JEF), recently sold 400,000 shares of the company’s common stock, as disclosed in a Securities and Exchange Commission (SEC) filing. The shares were sold at an average price of $72.26 each, totaling approximately $28.9 million.

Following this transaction, Handler retains direct ownership of 14,971,288 shares in the company, along with additional shares held indirectly through various trusts and entities, including his 2012 Trust, his spouse’s trust, and multiple LLCs, which collectively account for several hundred thousand more shares. The sale, executed on November 6, 2024, was documented in a Form 4 filing with the SEC.

In recent company news, Jefferies reported third-quarter earnings and revenue that fell short of analysts’ expectations. Net earnings reached $167 million, or $0.75 per diluted share, missing the anticipated $0.77 per share. Revenue came in at $1.68 billion, below the projected $1.74 billion. However, Jefferies’ Investment Banking segment showed strong growth, with net revenues rising 47% year-over-year to $949 million, driven by record quarterly advisory revenues of $592 million.

Morgan Stanley (NYSE: MS) also revised its price target for Jefferies from $64 to $67, maintaining an Equalweight rating. The revision reflects Jefferies’ favorable performance across its core divisions, including a 77% increase in Advisory services, a 42% rise in Equities, and a 13% gain in Fixed Income, Currency, and Commodities trading.

For the fiscal year, Jefferies reported net earnings of $463 million, or $2.06 per diluted share, on revenues of $5.08 billion. The board also announced a quarterly cash dividend of $0.35 per share, highlighting the company’s ongoing developments and financial strategies.

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