Jefferies shares jump 3% as SMFG considers raising stake

Jefferies shares jump 3% as SMFG considers raising stake

Jefferies Financial Group Inc. (NYSE: JEF) experienced a notable 3% increase in its share price on September 12, 2025, as rumors surfaced regarding Sumitomo Mitsui Financial Group Inc. (NYSE: SMFG) potentially raising its stake in the company. The rumors have led to significant market speculation and a positive reaction from investors.

The recent acquisition of a stake in Sumitomo Mitsui Financial Group by various institutional investors, including Ascent Group LLC and Goldman Sachs Group Inc., has sparked interest in the financial sector. Ascent Group LLC purchased 15,205 shares valued at approximately $235,000 in the first quarter of 2025 . Goldman Sachs Group Inc. increased its ownership by 0.5%, holding approximately 11.27 million shares valued at $174.3 million as of the most recent reporting period .

Institutional investors and hedge funds have been actively increasing their positions in Sumitomo Mitsui Financial Group, indicating a growing confidence in the company's financial health and future prospects. The positive sentiment from these investors has likely contributed to the increase in Jefferies' share price.

Sumitomo Mitsui Financial Group Inc., a global financial services provider, reported strong earnings results in the second quarter of 2025. The company posted $0.40 earnings per share, surpassing analysts' consensus estimates by $0.09. The company's revenue for the quarter was $16.41 billion, compared to analysts' expectations of $1,094.67 billion. The company's net margin was 11.78%, and its return on equity was 7.88% [^1, 2].

Analysts have also shown a positive outlook for Sumitomo Mitsui Financial Group Inc., with several equities research analysts upgrading the stock to a "strong-buy" rating. Nomura Securities, Wall Street Zen, and Zacks Research have all upgraded their ratings for the stock [^1, 2].

The increase in Jefferies' share price is a reflection of the market's optimism about the potential strategic benefits of Sumitomo Mitsui Financial Group raising its stake in the company. As more details emerge regarding the potential stake increase, investors will likely continue to monitor the situation closely.