We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Raymond James' Scout Investments Buyout to Boost Earnings
Read MoreHide Full Article
In its efforts to expand inorganically, Raymond James Financial, Inc. (RJF - Free Report) completed the acquisition of Scout Investments and its Reams Asset Management division from UMB Financial Corp. (UMBF - Free Report) . The financial terms of the deal, announced in April, were not disclosed.
The acquired operations will now be part of Carillon Tower Advisers, the subsidiary of Raymond James. Going forward, Carillon Tower will be able to distribute investment products of Scout and Reams across the globe.
Notably, Scout is an equity asset manager and Reams is focused on institutional-based fixed income business. Following the closure of the deal, Raymond James’ total assets under management are projected to be roughly $123 billion.
Further, Paul Reilly, chairman and CEO of Raymond James, expects the deal to be marginally accretive to the earnings. He gave this view on the latest earnings conference call.
Earlier at the time of announcing the deal, Reilly had said, “Building on our strong foundation of asset management expertise is a key component of the firm’s growth strategy and its focus on providing retail and institutional clients with sophisticated investment options.”
Raymond James has been strategically expanding and geographically diversifying its operations through acquisitions over the years now. In 2016, the company acquired German-based Mummert & Company Corporate Finance GmbH in a bid to expand its investment banking activities in Europe. It also closed the buyout of MacDougall, MacDougall & MacTier Inc. (also known as 3Macs), an independent Canadian investment firm.
These initiatives seem a great boost to investors and analysts to cheer for. Shares of Raymond James have rallied 15.6% over the past year, outperforming the industry’s 13.5% gain.
Further, analysts look happy with the company’s expansion efforts. The Zacks Consensus Estimate for the current fiscal year earnings has been revised 1.4% upward to $5.89 per share over the last 30 days.
Interactive Brokers’ earnings estimates for 2017 have been revised 3.2% upward over the past 30 days. Share price of the company has soared more than 58.1% over the last six months.
Stifel Financial’s earnings estimates for the current year have been revised 1.5% upward in the past 30 days. Also, its share price has increased 18.2% over the last six months.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Image: Bigstock
Raymond James' Scout Investments Buyout to Boost Earnings
In its efforts to expand inorganically, Raymond James Financial, Inc. (RJF - Free Report) completed the acquisition of Scout Investments and its Reams Asset Management division from UMB Financial Corp. (UMBF - Free Report) . The financial terms of the deal, announced in April, were not disclosed.
The acquired operations will now be part of Carillon Tower Advisers, the subsidiary of Raymond James. Going forward, Carillon Tower will be able to distribute investment products of Scout and Reams across the globe.
Notably, Scout is an equity asset manager and Reams is focused on institutional-based fixed income business. Following the closure of the deal, Raymond James’ total assets under management are projected to be roughly $123 billion.
Further, Paul Reilly, chairman and CEO of Raymond James, expects the deal to be marginally accretive to the earnings. He gave this view on the latest earnings conference call.
Earlier at the time of announcing the deal, Reilly had said, “Building on our strong foundation of asset management expertise is a key component of the firm’s growth strategy and its focus on providing retail and institutional clients with sophisticated investment options.”
Raymond James has been strategically expanding and geographically diversifying its operations through acquisitions over the years now. In 2016, the company acquired German-based Mummert & Company Corporate Finance GmbH in a bid to expand its investment banking activities in Europe. It also closed the buyout of MacDougall, MacDougall & MacTier Inc. (also known as 3Macs), an independent Canadian investment firm.
These initiatives seem a great boost to investors and analysts to cheer for. Shares of Raymond James have rallied 15.6% over the past year, outperforming the industry’s 13.5% gain.
Further, analysts look happy with the company’s expansion efforts. The Zacks Consensus Estimate for the current fiscal year earnings has been revised 1.4% upward to $5.89 per share over the last 30 days.
Zacks Rank & Other Stocks Worth a Look
Raymond James carries a Zacks Rank #2 (Buy). Two other stocks worth considering from the same industry are Interactive Brokers Group, Inc. (IBKR - Free Report) and Stifel Financial Corporation (SF - Free Report) , both carrying the same bullish Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Interactive Brokers’ earnings estimates for 2017 have been revised 3.2% upward over the past 30 days. Share price of the company has soared more than 58.1% over the last six months.
Stifel Financial’s earnings estimates for the current year have been revised 1.5% upward in the past 30 days. Also, its share price has increased 18.2% over the last six months.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>