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A Key Insider Loads up on Jefferies Shares

Story Highlights

A top insider has bought a substantial number of Jefferies shares. Investors can look to add the stock to their portfolios, taking into account the fact that a top shareholder of the company has shown confidence in the stock.

Financial services major Jefferies Financial Group Inc. (NYSE: JEF) recently revealed in the latest filing with the Securities and Exchange Commission (SEC) that the top shareholder and director of the company, Thomas W. Jones, bought its shares.

A top shareholder is one who has ownership of more than 10% of the company.

Details of the Buyout

On July 27, Jones bought 40,000 shares at an average price of $31.2111 for a total amount of about $1.2 million. Notably, post the transaction, Jones now owns 55,962 shares of the company.

Meanwhile, the stock has been accumulated by insiders in recent months. Corporate insiders bought shares worth $1.2 million in the last three months.

The company is slated to report its third-quarter earnings on September 29, 2022.

Wall Street’s Take

Recently, Oppenheimer analyst Chris Kotowski reiterated a Buy rating on the stock. The analyst, however, raised the price target from $43 to $46, which implies upside potential of 49.4% from current levels.

Overall, Consensus among analysts is a Strong Buy based on one Buy and three Holds. The JEF average price target of $33 implies upside potential of 7.2% from current levels. Shares have declined 6.2% over the past year.

Final Thoughts

Shares of Jefferies have declined by 22.1% over the past year. Despite this, key insiders of the company have been lapping up its shares. This latest buying by a top shareholder reflects the fact that the key insiders of the company are bullish about its prospects and the stock is expected to rise in the near term.

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