Jefferies Financial Group Inc. (JEF) saw its shares plummet 5.38% in after-hours trading on Wednesday, following the release of its Q4 2025 earnings report and news of insider trading allegations involving a former employee.
The company reported adjusted EPS of $0.96, beating estimates of $0.94, and revenue of $2.07 billion, surpassing the $1.97 billion forecast. However, diluted EPS from continuing operations came in at $0.87, which may have disappointed some investors. The mixed results, coupled with broader weakness in financial stocks, contributed to the decline.
Adding to the negative sentiment, a former Jefferies employee pleaded not guilty to UK insider dealing charges related to a 2021 case. The allegations, along with a 1% drop in the NYSE Financial Index, further pressured the stock.
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