ST. PETERSBURG, FL – In a recent transaction, Elwyn Tashtego S, the CEO and President of Raymond James Advisor (RJA), a division of Raymond James Financial Inc . (NYSE:RJF), sold a significant portion of his holdings in the company. On August 12, Tashtego sold 31,277 shares of common stock at prices ranging from $109.50 to $110.25, with the total value of the sale amounting to approximately $3,429,263.
This move by the CEO was part of a series of same-day open market transactions. The reported weighted average sale price was $109.6417 per share. Following the sale, Tashtego still retains 35,380 shares of Raymond James Financial directly. Additionally, the SEC filing indicated holdings in an Employee Stock Ownership Plan (ESOP) account with 7,330 shares, as well as custodial accounts for his children, each holding 75 shares.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission (SEC), which is used to report changes in company insiders' ownership positions. The filing also included a statement that Tashtego is prepared to provide full information regarding the number of shares sold at each separate price upon request by the SEC staff, the issuer, or a shareholder of the issuer.
Raymond James Financial Inc. is a Florida-based diversified holding company providing financial services to individuals, corporations, and municipalities through its subsidiary companies. Its stock is traded on the New York Stock Exchange under the ticker symbol RJF.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is important to note that insider transactions can be subject to various personal financial considerations and do not always indicate a company's operational performance or future direction.
The reported transaction comes amidst the regular financial activities of executives and insiders within the company. Raymond James Financial has not released any official statement regarding the CEO's stock sale at the time of this report.
In other recent news, Raymond James Financial, Inc. reported strong fiscal Q3 2024 results, with an 11% year-over-year surge in net revenues, reaching a record $3.23 billion. The company's net income available to common shareholders stood at $491 million, or $2.31 per diluted share. Despite these impressive figures, Raymond James' total assets saw a 1% sequential decrease to $80.6 billion.
Citi and JPMorgan have both adjusted their price targets for Raymond James, citing mixed quarter results and capital markets challenges. Citi revised its target to $125 from $132, while JPMorgan decreased its target from $137 to $135. Both firms maintained their respective ratings on the stock.
Raymond James has been actively repurchasing shares, having bought back 2 million shares of common stock for $243 million. The company has expressed plans to continue these repurchases and to focus on corporate development, alongside exploring potential merger and acquisition opportunities. These developments come amid a noted decline in brokerage and investment banking revenue, as well as net interest income and third-party fees.
InvestingPro Insights
As the CEO of Raymond James Financial (NYSE:RJF) adjusts his stake in the company, investors are keenly observing the financial health and future potential of the firm. According to recent data from InvestingPro, Raymond James Financial has a market capitalization of approximately $24.06 billion, reflecting its substantial presence in the financial services sector. Additionally, the company's price-to-earnings (P/E) ratio stands at 13.73, with an adjusted P/E ratio for the last twelve months as of Q3 2024 at 11.9, suggesting a potentially attractive valuation relative to earnings.
InvestingPro Tips highlight that Raymond James Financial has maintained its dividend payments for an impressive 40 consecutive years, indicative of a strong commitment to returning value to shareholders. Moreover, the company's liquid assets surpass its short-term obligations, providing a cushion for operational flexibility and financial stability. For investors looking for more comprehensive insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/RJF, including analysts' profitability predictions for the year and insights into the company's historical profitability and returns.
As for performance metrics, the company has witnessed a revenue growth of 9.51% over the last twelve months as of Q3 2024, with a gross profit margin standing at an impressive 93.42%. These figures underscore the company's ability to generate substantial earnings relative to its revenues, which is a positive sign for investors. The dividend yield as of late 2024 is 1.63%, coupled with a dividend growth of 7.14% for the same period, further reinforcing the attractiveness of RJF as a potential income-generating investment.
Understanding these financial metrics and InvestingPro Tips can provide investors with a more nuanced view of Raymond James Financial's current situation and future prospects, especially in the context of insider transactions such as the CEO's recent stock sale.
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