Leucadia National (LUK) Renamed As Jefferies Financial Group
Zacks Investment Research | May 23, 2018 11:12PM ET
Leucadia National Corporation (NYSE:JEF) (BE:LUK) has been renamed as Jefferies Financial Group Inc. (JEF) effective immediately, after receiving a green signal from its shareholders. Following the name change,Jefferies Financial Group will use the ticker “JEF” for trading purposes on the New York Stock Exchange.
Notably, Leucadia renamed itself as part of its transformation from a holding company with disparate assets to a financial services company. The company also declared a cash dividend of 10 cents per share, payable on Jun 29, 2018, to its shareholders as of record Jun 18, 2018.
Our Take
Leucadiahas to continually maintain and upgrade its computer systems as well as networks to prevent any intrusion and data theft of confidential and sensitive client information. At the same time, the company has to employ risk monitoring techniques such as scenario analysis and stress tests, exposure concentrations, counterparty exposure, leverage, cash capital, and performance analysis for its financial services businesses. All these consume a significant amount of Leucadia’sresources and strain its profitability.
Moreover, the company has a significant exposure to the European market. In the current scenario, when the economy in the region is highly unpredictable, particularly after the Brexit referendum, it becomes difficult for Leucadiato increase revenues and reduce costs. Brexit might further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, thus lowering the productivity of the company. In the past six months, this Zacks Rank #5 (Strong Sell) company has lost 8.6% compared with the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.