Stifel shares fall for a second straight session on Monday, company to buy certain assets of George K. Baum & Co for an undisclosed amount

August 13, 2019 7:20 am

Stifel Financial Corporation (SF) said on Monday that it had agreed to buy certain assets of George K. Baum & Company, a leader in the structuring, underwriting and marketing of taxable and tax-exempt municipal securities, based in Kansas City, Missouri.

Financial terms of the agreement, however, remained undisclosed.

The deal is expected to be finalized during the fourth quarter of this year.

Stifel shares closed lower for a second consecutive trading session in New York on Monday. It has also been the steepest daily loss since August 7th. The stock went down 2.32% ($1.25) to $52.66, after touching an intraday low at $52.57, or a price level not seen since March 28th ($51.36).

Shares of Stifel Financial Corporation have risen 27.14% so far this year, following a 30.46% drop in 2018.

“This transaction brings GKB’s nationally recognized municipal securities business to Stifel and further strengthens Stifel’s ability to provide top tier service to municipal issuer clients and non-profit borrowers,” Ronald Kruszewski, Stifel Financial Corp’s Chairman and Chief Executive Officer, said in a statement.

“Further, GKB’s regional and sector focused practices provide a unique fit with Stifel’s existing public finance structure and a strong foundation to grow our businesses,” Kruszewski added.

George K. Baum & Co has 24 offices across the United States, including public finance offices in 22 cities. For the past two decades, the company has provided underwriting or financial advisory services to over 7 796 municipal bond issues at a total value of over $320 billion.

Analyst stock price forecast and recommendation

According to CNN Money, the 5 analysts, offering 12-month forecasts regarding Stifel Financial Corp’s stock price, have a median target of $68.00, with a high estimate of $70.00 and a low estimate of $66.00. The median estimate represents a 29.13% upside compared to the closing price of $52.66 on August 12th.

The same media also reported that at least 4 out of 6 surveyed investment analysts had rated Stifel Financial Corp’s stock as “Buy”, while 2 – as “Hold”.

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