Sumitomo Mitsui Financial Group, Inc. acquired 5,906,542 shares of Jefferies Financial Group Inc. (NYSE:JEF) common stock on July 15, 2026. The transaction totaled approximately $318,717,006, with shares purchased at a price of $53.96 each. The stock currently trades at $55.80, with a market capitalization of $12.86 billion. According to InvestingPro analysis, Jefferies appears undervalued at current levels, trading at a low P/E ratio of 15.49 relative to its near-term earnings growth, with a PEG ratio of just 0.47. InvestingPro offers 10 additional exclusive tips for JEF investors.
The price paid for these securities is subject to adjustment following an approximately two-month reference period, according to a previously established agreement between an affiliate of Sumitomo Mitsui Financial Group, Inc. and an unaffiliated third party.
Following this acquisition, Sumitomo Mitsui Financial Group, Inc. holds 8,566,379 shares of Jefferies Financial Group Inc. The reported securities are held indirectly by Sumitomo Mitsui Banking Corporation, a direct, wholly-owned subsidiary of Sumitomo Mitsui Financial Group, Inc. The reporting person disclaims beneficial ownership of the reported securities, except to the extent of its pecuniary interest.
Sumitomo Mitsui Financial Group, Inc. is considered a director of Jefferies Financial Group Inc. by deputization for purposes of Section 16 of the Securities and Exchange Act of 1934. This is due to Mr. Hyakutome, Deputy President of SMFG, currently serving on the board of directors of Jefferies Financial Group Inc.
In other recent news, Jefferies Financial Group Inc. reported second-quarter results that did not meet analyst expectations. The company posted adjusted earnings per share of $1.02, falling short of the consensus estimate of $1.24. Net revenues came in at $2.21 billion, just below the $2.22 billion forecast, although this was a 35% increase from the previous year. Despite the earnings miss, Jefferies achieved record quarterly revenues in investment banking and equities, with investment banking net revenues reaching $1.21 billion, a 57% year-over-year increase.
In addition, Jefferies is actively involved in a potential financial maneuver to support Carl Icahn’s possible bid for Caesars Entertainment Inc., seeking to raise approximately $5 billion in debt. Meanwhile, Oppenheimer has lowered its price target for Jefferies shares to $83 from $87, maintaining an Outperform rating after the earnings miss. UBS also adjusted its price target to $65 from $67, citing mixed quarterly results while keeping a Neutral rating. Furthermore, Jefferies announced the pricing of €850 million in senior notes due in 2033, with an effective yield of 4.544%.
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