Financial Stocks Sinking; Oaktree Capital Slipping Again Following Keefe, Bruyette Downgrade


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Top Financial Stocks

JPM -2.38%

BAC -1.07%

WFC -0.01%

C -1.11%

USB -0.07%

Financial stocks were moderately lower, with the NYSE Financial Sector Index slipping about 0.4% while the S&P Financial 100 Index was down about 0.4%.

In company news, Oaktree Capital Group ( OAK ) shares fell Monday after the asset manager focusing on alternative investments was cut to Market Perform from Outperform at Keefe, Bruyette & Woods, which also reduced its price target for the stock by $4 to $60 a share.

The downgrade follows OAK's last week reporting its Q1 financial results, posting per-share net income of $1.41, down from its EPS of $1.95 during the year-ago period but still beating the Capital IQ consensus by $0.32 per share. Revenue declined 11.1% year over year to $527.8 million, topping analyst projections for the quarter by $116.9 million, or nearly 28.5%.

Despite the solid Q1 earnings and revenue beats, OAK shares finished with a 1.2% decline on Friday and was down another 0.7% during Monday's session at $51.97 each. The stock has a 52-week range of $48.95 to $62.30 a share, adding 4.2% in value over that 12-month span.

In other sector news,

(-) ARR, (-0.7%) Q1 core earnings of $0.15 per share beat the Capital IQ consensus by $0.14 per share.

(-) JPM, (-2.4%) Norway drops the company in favor of Citigroup to manage its $865 bln sovereign wealth fund. The bank late Friday also warns of "challenging" trading environment, with Q2 revenue seen declining as much as 20% from year-ago levels.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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