Horace Carter, President of Fixed Income at Raymond James Financial Inc . (NYSE:), recently executed a sale of 5,000 shares of the company’s common stock. The sale comes as Raymond (NS:) James trades near its 52-week high, with the stock delivering impressive returns of over 50% year-to-date and maintaining a solid P/E ratio of 13.7. The transaction, which took place on December 4, 2024, was conducted at a weighted average price of $165.0294 per share, resulting in a total sale value of approximately $825,147. Following this transaction, Carter holds 34,603 shares directly. Additionally, he has indirect ownership of 1,332 shares through an Employee Stock Ownership Plan (ESOP) account. The sale was executed in the open market, with prices ranging from $164.95 to $165.10 per share. According to InvestingPro analysis, Raymond James currently appears undervalued, with a GREAT financial health score and 12 additional ProTips available to subscribers.
In other recent news, Raymond James Financial has announced an increase in its quarterly dividend and a new share repurchase program. The company’s board declared a cash dividend of $0.50 per share, marking an 11.1% increase from the prior dividend. Furthermore, Raymond James authorized a new stock repurchase program, allowing the company to buy back shares up to an aggregate amount of $1.5 billion.
These recent developments follow the company’s record fourth-quarter revenues of $3.46 billion and a net income of $601 million, largely due to an increase in advisory revenue and robust investment banking performance. Total (EPA:) client assets reached a record $1.57 trillion, with net new assets of $60.7 billion domestically for the year.
Several analyst firms have adjusted their outlooks on Raymond James following these results. TD Cowen maintained a Hold rating but increased the price target to $150.00, citing the company’s potential to achieve projected earnings and price-to-earnings ratio. Similarly, BofA Securities and Citi also increased their price targets to $152 and $145, respectively.
Looking ahead, Raymond James maintains an optimistic outlook for fiscal 2025, expecting growth driven by increases in assets and fee-based accounts. However, the company anticipates an additional $5 billion in outflows in the first quarter due to the offboarding of an Office of Supervisory Jurisdiction. Despite this, BofA projects a 5-7% growth rate for the following year.
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