Stifel Financial (NYSE:SF) Announces Earnings Results

Stifel Financial (NYSE:SF) released its quarterly earnings data on Wednesday. The financial services provider reported $1.42 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.09, FiscalAI reports. The company had revenue of $1.45 billion during the quarter, compared to the consensus estimate of $1.42 billion. Stifel Financial had a net margin of 16.11% and a return on equity of 19.32%. Stifel Financial’s quarterly revenue was up 13.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.71 EPS.

Here are the key takeaways from Stifel Financial’s conference call:

• Stifel delivered record first-half results, with Q2 net revenue of $1.45 billion up 13% year over year and non-GAAP EPS of $1.42 up 25%. Management highlighted a 24% return on tangible common equity and said the firm is on pace with its 2026 plan.
• Wealth management remained a major growth engine, posting record quarterly net revenue of $957 million and record client assets of $580 billion. The firm said advisor recruiting remains strong and it ranked No. 1 in J.D. Power advisor satisfaction for the fourth straight year.
• Institutional banking momentum was strong, with Q2 revenue up 15% and investment banking revenue up 42% year over year. Management said pipelines are robust, the new issue market has reopened, and sponsor activity could provide additional upside.
• Loan growth and deposit funding are supporting higher net interest income. Stifel increased its loan book by $2.6 billion in Q2 and still expects up to $4 billion of full-year balance sheet growth, while guiding Q3 net interest income to $290 million-$300 million.
• Capital returns and capital deployment were aggressive, with more than $500 million deployed in the quarter through reinvestment, buybacks, and dividends. Management said it remains disciplined on M&A and prefers organic investment and share repurchases at current valuations.

Stifel Financial Trading Up 0.3%

Shares of Stifel Financial stock opened at $79.52 on Friday. The stock has a 50 day moving average of $73.23 and a 200 day moving average of $76.80. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.80 and a current ratio of 0.85. The firm has a market capitalization of $12.20 billion, a price-to-earnings ratio of 14.26 and a beta of 1.01. Stifel Financial has a fifty-two week low of $67.81 and a fifty-two week high of $89.83.

Stifel Financial Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 1.7%. The ex-dividend date was Monday, June 1st. Stifel Financial’s dividend payout ratio is presently 26.46%.

Analysts Set New Price Targets

Several research firms recently commented on SF. Zacks Research raised Stifel Financial from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 20th. UBS Group set a $90.00 target price on Stifel Financial in a research note on Thursday. JPMorgan Chase & Co. lifted their price target on Stifel Financial from $80.00 to $86.00 and gave the stock a “neutral” rating in a report on Thursday. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Stifel Financial in a research report on Friday, May 29th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $91.67.

Hedge Funds Weigh In On Stifel Financial

Hedge funds have recently modified their holdings of the business. Advisory Services Network LLC purchased a new stake in Stifel Financial in the 3rd quarter valued at about $29,000. BOKF NA increased its position in shares of Stifel Financial by 1,626.9% during the third quarter. BOKF NA now owns 449 shares of the financial services provider’s stock valued at $51,000 after acquiring an additional 423 shares during the last quarter. Pinnacle Holdings LLC increased its position in shares of Stifel Financial by 59.9% during the fourth quarter. Pinnacle Holdings LLC now owns 454 shares of the financial services provider’s stock valued at $57,000 after acquiring an additional 170 shares during the last quarter. National Bank of Canada FI purchased a new stake in shares of Stifel Financial in the 3rd quarter valued at approximately $57,000. Finally, Brown Brothers Harriman & Co. lifted its holdings in shares of Stifel Financial by 27.5% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 705 shares of the financial services provider’s stock worth $80,000 after acquiring an additional 152 shares during the last quarter. 82.01% of the stock is currently owned by hedge funds and other institutional investors.

About Stifel Financial

Stifel Financial Corp. is a diversified financial services holding company headquartered in St. Louis, Missouri. Founded in 1890, the firm has grown into a full‐service brokerage and investment banking organization serving individual investors, corporations and institutions. Through its principal subsidiary, Stifel, Nicolaus & Company, Incorporated, the company delivers a broad array of financial products and services backed by research‐driven insights.

The firm’s main business activities are organized into two core segments: Private Client Group and Institutional Group.