In a recent transaction, Victor Nesi, Co-President of Stifel Financial Corp (NYSE:SF), sold 10,500 shares of the company's common stock. The shares were sold at a price of $113.82 each, amounting to a total of approximately $1.2 million. Following this sale, Nesi holds 44,232 shares through a children's trust, 22,574 shares by another trust, 168,653 shares directly, and 31,000 shares in a family trust.
This transaction reflects Nesi's indirect ownership adjustments and continues to highlight his significant stake in the company. Investors often keep a close eye on such insider activities to gauge the sentiment of company executives towards their firm's stock.
In other recent news, Stifel Financial Corp. announced dividends for its common stock and three series of preferred stock, scheduled for mid-December payments. The company declared a quarterly cash dividend of $0.42 per share for its common stock, and dividends for its preferred stock series B, C, and D. This follows the company's robust financial growth, with third-quarter earnings per share (EPS) jumping to $1.50, a 150% increase from the previous year, and net revenue reaching $1.23 billion, a 17% year-over-year increase.
These promising results led TD Cowen to increase Stifel Financial's stock price target from $100.00 to $105.00, while maintaining a Hold rating on the shares. The revised price target is based on the company's clearer path to achieving over $8.00 in EPS for the year 2025, a projection that TD Cowen believes is now attainable.
In addition, Stifel Financial reported a significant increase in its third-quarter revenue and earnings, with the company's Institutional Group playing a major role in this growth, experiencing a 45% surge in revenue. Stifel also maintained a solid capital position, with a Tier 1 leverage capital ratio of 11.3%. Looking ahead, the firm aims to surpass $5 billion in revenue and achieve $8 in EPS by 2025, according to recent developments.
InvestingPro Insights
Stifel Financial Corp's recent insider transaction occurs against a backdrop of strong financial performance and market positioning. According to InvestingPro data, the company's market capitalization stands at $11.6 billion, with a price-to-earnings ratio of 19.24, suggesting a reasonable valuation relative to its earnings.
InvestingPro Tips indicate that Stifel has raised its dividend for 8 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a current dividend yield of 1.48% and a robust dividend growth rate of 16.67% over the last twelve months. These factors may provide context for why insiders like Victor Nesi maintain significant holdings despite occasional sales.
The company's financial health appears solid, with a revenue growth of 10.26% over the last twelve months and an impressive gross profit margin of 94.65%. Additionally, Stifel's operating income margin of 19.84% suggests efficient operations.
Investors might find it particularly interesting that Stifel is trading at a low P/E ratio relative to its near-term earnings growth, as highlighted by another InvestingPro Tip. This could indicate potential undervaluation, especially considering the company's strong return over the last year and decade.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide deeper insights into Stifel Financial Corp's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.