Insider Activity Report: Raymond James Financial (RJF)

Art Garcia, a director at Raymond James Financial (RJF), recently bought 879 shares. The buy is an initial stake for the director, and came to a total cost of $98,715.

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  • This marks the only insider buy over the past two years. Otherwise, company executives have been sellers of shares over the past two years. The biggest sales have come following the exercise of stock options, and have totaled as much as $5.2 million.

    Overall, Raymond James insiders own 9.8 percent of shares.

    The financial services company is up 2 percent over the past year, far underperforming the overall stock market.

    Earnings are down 2 percent, even as revenues are up 8 percent, as higher costs and interest rates have weighed on the sector.

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  • While operations have struggled, Raymond James still has a 15 percent profit margin, and could benefit from lower interest rates later in the year.

    Action to take: Raymond James shares look attractive at current prices or on any drop. Shares trade at just 13 times earnings, and pay a 1.5 percent dividend. The company has a history of increasing its payout over time.

    For traders, while shares have underperformed in the past year, they are heading higher. The May $120 calls, last going for about $4.35, could see mid-double-digit returns on a further rally in the next three months.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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