Piper Sandler Posts Robust Third Quarter Results; Shares Rise 5.7%


Investment bank and financial services corporation Piper Sandler Companies (PIPR) has reported better-than-expected results for the third quarter ended September 30, 2021. The strong results were mainly driven by the growth witnessed in net revenues.

Following the earnings, shares of the company appreciated 5.7% to close at $164.69 on Friday.

Piper Sandler reported quarterly net revenues of $445.6 million, up 47% from the same quarter last year. Moreover, the figure surpassed the consensus estimate of $403.65 million. The overall growth in net revenues came on the back of a 177% rise in the revenues from advisory Services and a 60% increase in the revenues from municipal financing.

The company reported quarterly earnings per share (EPS) of $4.55, up 91% year-over-year. Further, the figure topped the consensus estimate of $3.77 per share.

In other key operating metrics, the company’s compensation ratio and non-compensation ratio stood at 67.7% and 15.3%, respectively, at the end of the quarter.

The CEO of Piper Sandler, Chad R. Abraham, said, “We generated our fourth consecutive quarter with net revenues at or above $400 million, driven by strong contributions across our businesses. We remain committed to returning excess capital to our shareholders and with our strong earnings and positive outlook, we declared a special cash dividend of $3.00 per share.” (See Piper Sandler stock chart on TipRanks)

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Recently, JMP Securities analyst Devin Ryan reiterated a Buy rating on the stock with a price target of $183, which implies upside potential of 11.1% from current levels.

Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average Piper Sandler price target of $170.67 implies upside potential of 3.6% from current levels.

Piper Sandler scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 102.1% over the past year.

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