Last Updated: 19 Sep 2024
Executive Summary
Raymond James Financial Inc. (RJF) is a leading financial services company with a market capitalization of $24.94 billion. The company has a strong track record of financial performance, with revenue and earnings growth in recent quarters. RJF's stock is currently trading at $121.12, below its 52-week high of $130.71. Analysts have a mixed view on the stock, with two strong buy ratings, two buy ratings, and ten hold ratings.
Company Overview
Raymond James Financial is an American multinational independent investment bank and financial services company. The company provides financial services to individuals, corporations, and municipalities through its subsidiary companies that engage primarily in investment and financial planning, in addition to investment banking and asset management. RJF has a global presence with operations in the United States, Canada, Europe, and the Middle East.
Fundamental Analysis
RJF's financial performance has been strong in recent quarters. The company's revenue grew by 12.3% year-over-year to $12.32 billion in the latest quarter. Net income also increased by 35.1% to $488 million. RJF's earnings per share (EPS) were $8.87, up from $6.56 in the same quarter last year.
The company's profitability metrics are also strong. RJF's gross profit margin was 87.7% in the latest quarter, and its operating margin was 20.0%. The company's return on assets (ROA) was 2.4%, and its return on equity (ROE) was 18.0%.
RJF's financial leverage is moderate. The company's debt-to-equity ratio is 0.56, and its interest coverage ratio is 10.3x.
Technical Analysis
RJF's stock price has been in a downtrend since reaching a 52-week high of $130.71 in January 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 38.5, which indicates that the stock is oversold.
Short Term Outlook
The technical analysis suggests that RJF's stock is likely to continue to decline in the short term. The stock is trading below its moving averages and the RSI is oversold. However, the company's strong financial performance could provide some support for the stock price.
Long Term Outlook
The long-term outlook for RJF's stock is more positive. The company has a strong track record of financial performance and a solid balance sheet. The company's growth prospects are also favorable, as the demand for financial services is expected to continue to grow in the coming years.
Analyst Recommendations
Analysts have a mixed view on RJF's stock. Two analysts have a strong buy rating on the stock, two analysts have a buy rating, and ten analysts have a hold rating. The average analyst target price is $129.8, which implies a potential upside of 7.1% from the current price.
