Raymond James Financial (RJF) shares rise 0.50% despite earnings plunge

Raymond James Financial (RJF) shares rose by 0.50% today, reflecting a positive market sentiment towards the company's recent developments and strategic initiatives.

The strategy of buying RJF shares after they reached a recent peak and holding for 1 week yielded moderate returns over the past 5 years, with a 27.9% gain over the last year outperforming the broader market's 17.6% gain. However, the stock experienced a 2.4% decline in 2025, slightly underperforming the market's 1.7% rise year-to-date. Overall, the strategy showed resilience with strong absolute performance but faced challenges in the most recent period, highlighting the importance of market timing and economic conditions.

Analysts have maintained a bullish outlook on RJF, with Argus Research analyst Kevin Heal reiterating a Buy rating on May 2, 2025, and Seaport Global also reiterating a Buy rating on April 25, 2025. These ratings suggest a potential upside for the stock, with price targets indicating significant growth potential.

RJF's latest earnings report for the quarter ending March 31, 2025, showed a net profit of $0, a stark contrast to the $476 million net profit reported in the same period last year. This significant drop in earnings has raised concerns among investors about the company's financial health and future prospects.

Insider trading activity has also been a point of interest, with a notable increase in insiders selling their shares. The President of RJF, James E Bunn, sold 3,650 shares last month for a total of $498,152. This selling activity has been interpreted as a negative signal by some investors, suggesting that insiders may have concerns about the company's future performance.

Despite the recent earnings report and insider selling activity, RJF's stock has shown resilience, with a slight gain on May 15, 2025. However, the company's low Momentum Score of F, based on recent price changes and earnings estimate revisions, suggests that it may not be an ideal stock for momentum investors. This score indicates that the stock may not experience significant price movements in the near future, and investors should approach it with caution.