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Piper Sandler (PIPR)
NYSE:PIPR
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Piper Sandler (PIPR) AI Stock Analysis

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PIPR

Piper Sandler

(NYSE:PIPR)

Rating:76Outperform
Price Target:
$352.00
▲(5.46% Upside)
Piper Sandler's overall stock score of 76 reflects its strong financial performance and positive technical indicators. While valuation suggests possible overvaluation, the robust earnings call and strategic corporate events support a favorable outlook. However, attention is needed on maintaining profitability margins amidst market challenges.
Positive Factors
Financial Performance
Piper Sandler delivered a strong quarter with adjusted revenues significantly above estimates, indicating strong company performance.
Growth Potential
The firm has heavily invested in talent to expand its platform, particularly in the Advisory business, which is expected to drive incremental growth.
Market Position
Piper Sandler is building a defensible moat in the middle markets given its level of scale and materially increasing relevance to private equity clients.
Negative Factors
Market Volatility
Timely investor meetings with Piper Sandler management address recent market volatility, adding some near-term uncertainty.
Stock Valuation
Despite strong stock performance over the past two years, the current valuation reasonably reflects the outlook, leading to a Market Perform rating.

Piper Sandler (PIPR) vs. SPDR S&P 500 ETF (SPY)

Piper Sandler Business Overview & Revenue Model

Company DescriptionPiper Sandler Companies operates as an investment bank and institutional securities firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and internationally. The company offers investment banking and institutional sales, trading, and research services for various equity and fixed income products. It provides advisory services, such as mergers and acquisitions, equity private placements, and debt and restructuring advisory; raises capital through equity and debt financings; underwrites municipal issuances; and offers municipal financial advisory and loan placement services, as well as various over-the-counter derivative products. The company also offers public finance investment banking services that focus on state and local governments, and cultural and social service non-profit entities, as well as the education, healthcare, hospitality, senior living, and transportation sectors. In addition, it provides equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities. Further, the company is involved in the alternative asset management funds merchant banking and healthcare to invest firm capital and to manage capital from outside investors, as well as trading activities. The company was formerly known as Piper Jaffray Companies and changed its name to Piper Sandler Companies in January 2020. Piper Sandler Companies was founded in 1895 and is headquartered in Minneapolis, Minnesota.
How the Company Makes MoneyPiper Sandler generates revenue through several key streams. The primary sources of income include investment banking fees, which are earned from advisory services for mergers and acquisitions, underwriting of public offerings, and private placements. Additionally, the firm earns commissions and trading revenues from its institutional brokerage services, which involve executing trades on behalf of institutional clients. Asset management fees also contribute to the firm's earnings, as Piper Sandler manages investment funds and portfolios for clients. The company benefits from strategic partnerships with other financial institutions, enhancing its service offerings and expanding its market reach. Economic conditions, market activity, and client demand are significant factors influencing its revenue performance.

Piper Sandler Key Performance Indicators (KPIs)

Any
Any
Total Advisory Services Completed Transactions
Total Advisory Services Completed Transactions
Counts the number of advisory deals closed, indicating the firm's success in securing and completing client engagements in this competitive sector.
Chart InsightsPiper Sandler's advisory transactions have shown volatility, with a notable dip in 2023 but a recovery trend into 2024. The latest earnings call highlights a strong performance in advisory revenues, up 12% year-over-year, driven by higher fees and strategic acquisitions like G Squared Capital Partners. Despite challenges in corporate financing, the firm maintains growth momentum in advisory services, which is crucial for sustaining overall revenue growth. Investors should note the positive impact of strategic acquisitions and increased dividends, despite anticipated revenue softening in other segments.
Data provided by:Main Street Data

Piper Sandler Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in advisory revenues, municipal financing, and brokerage activities, with strategic hiring and acquisitions positioning the company for further growth. However, challenges were noted in corporate financing and non-depository client activity, alongside increased expenses.
Q2-2025 Updates
Positive Updates
Strong Advisory Revenue Growth
Advisory revenues reached $206 million, up 12% year-over-year, with the Services and Industrials group having one of their best quarters since 2021.
Record Municipal Financing Revenues
Municipal financing revenues increased by 66% year-over-year, driven by strong client and geographic reach.
Increased Brokerage Revenues
Equity brokerage generated $58 million, a 12% increase year-over-year, with strong activity on the derivatives desk.
Improved Operating Margin
The company achieved an 18.1% operating margin for the second quarter of 2025, with net revenues of $405 million.
Growth in Managing Directors
The company ended the quarter with 182 managing directors, up 7% from a year ago, reflecting strategic hires in key sectors.
Acquisition to Enhance Technology Investment Banking
Announced acquisition of G Squared Capital Partners, specializing in government services and defense technology, to bolster technology investment banking.
Dividend Increase
The Board approved a $0.05 increase to the quarterly cash dividend, bringing it to $0.70 per share.
Negative Updates
Decline in Corporate Financing Revenues
Corporate financing revenues were $35 million, down 31% from the previous year, with notable declines in the biopharma sector.
Impact of Restructuring Charges
A $5 million restructuring charge related to headcount reductions and vacated office space impacted GAAP results.
Subdued Activity with Non-depository Clients
Fixed income revenues with non-depository clients were subdued due to spread tightening and relative value concerns.
High Non-Compensation Expenses
Non-compensation expenses increased 6% year-over-year, driven by higher legal and professional fees.
Company Guidance
During Piper Sandler's Second Quarter 2025 earnings call, the company reported adjusted net revenues of $405 million, marking an increase compared to the previous year, with an 18.1% operating margin and an adjusted EPS of $2.95. Advisory revenues reached $206 million, up 12% year-over-year, with notable performance from the Services and Industrials group. The company completed 71 transactions, and advisory revenues for the first half of 2025 were $423 million, reflecting a 24% increase. Corporate financing revenues were $35 million, down 31% from the previous year, with $10 billion raised through 26 financings. Public finance revenues grew to $42 million, up 66% year-over-year, while equity brokerage revenues increased by 12% to $58 million. Fixed income revenues were $54 million, showing a 37% year-over-year growth. The company ended the quarter with 182 managing directors, reflecting a 7% increase from the previous year, and highlighted strategic hires to strengthen sector and product expertise. They also announced a $0.05 increase to their quarterly cash dividend, now at $0.70 per share.

Piper Sandler Financial Statement Overview

Summary
Piper Sandler shows strong financial performance with a 13.6% revenue growth and robust profitability margins. The balance sheet indicates no debt and a solid equity base, while cash flow metrics highlight significant free cash flow generation. However, the decrease in gross profit margin warrants attention.
Income Statement
75
Positive
Piper Sandler has demonstrated a strong income statement performance with a notable increase in revenue from $1.35 billion in 2023 to $1.53 billion in 2024, reflecting a revenue growth rate of approximately 13.6%. The gross profit margin in 2024 was approximately 34.4%, while the net profit margin was around 11.8%. The EBIT and EBITDA margins were both approximately 31.7%. These margins indicate robust profitability, although the decrease in gross profit from 2023 is a point of concern.
Balance Sheet
80
Positive
The balance sheet reveals a strong financial position with no total debt as of 2024, significantly improving from the prior year. The debt-to-equity ratio is 0, indicating no leverage, while the equity ratio stands at 54.4%, showing a solid equity base. Return on equity (ROE) is approximately 14.8%, which is healthy for the industry, reflecting efficient use of equity to generate profit.
Cash Flow
70
Positive
Piper Sandler's cash flow statement shows a positive trajectory, with free cash flow growing from $265.58 million in 2023 to $297.76 million in 2024, translating to a growth rate of approximately 12.1%. The operating cash flow to net income ratio is 1.73, indicating strong cash generation relative to net profits. However, the free cash flow to net income ratio is a high 1.64, suggesting the company is generating significant free cash flow relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.53B1.53B1.31B1.43B2.04B1.25B
Gross Profit994.47M527.42M1.23B1.43B1.89B1.11B
EBITDA222.16M253.75M159.96M186.30M499.68M149.18M
Net Income203.54M181.11M85.49M110.67M278.51M40.50M
Balance Sheet
Total Assets1.82B2.26B2.14B2.18B2.57B2.00B
Cash, Cash Equivalents and Short-Term Investments126.08M482.83M383.10M365.62M970.97M507.94M
Total Debt115.67M98.82M164.16M234.77M214.63M294.48M
Total Liabilities442.39M840.16M841.51M927.53M1.34B1.07B
Stockholders Equity1.21B1.23B1.09B1.05B1.06B829.42M
Cash Flow
Free Cash Flow252.05M297.76M265.58M-255.51M686.51M762.18M
Operating Cash Flow320.03M313.25M275.63M-224.91M707.09M779.76M
Investing Cash Flow-71.75M-31.77M-10.05M-127.10M-20.58M-435.00M
Financing Cash Flow-192.53M-180.61M-249.59M-250.06M-223.12M-87.56M

Piper Sandler Technical Analysis

Technical Analysis Sentiment
Positive
Last Price333.79
Price Trends
50DMA
309.59
Positive
100DMA
278.05
Positive
200DMA
285.37
Positive
Market Momentum
MACD
7.36
Positive
RSI
60.60
Neutral
STOCH
84.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PIPR, the sentiment is Positive. The current price of 333.79 is above the 20-day moving average (MA) of 328.30, above the 50-day MA of 309.59, and above the 200-day MA of 285.37, indicating a bullish trend. The MACD of 7.36 indicates Positive momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 84.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PIPR.

Piper Sandler Risk Analysis

Piper Sandler disclosed 32 risk factors in its most recent earnings report. Piper Sandler reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Piper Sandler Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$5.82B28.4145.36%3.54%42.85%1398.33%
78
Outperform
$5.39B19.7350.41%3.50%10.40%91.75%
77
Outperform
$12.43B29.2529.16%1.02%23.24%55.76%
76
Outperform
$5.90B28.1617.91%1.69%10.46%50.47%
69
Neutral
$5.33B17.4116.01%53.19%23.89%
68
Neutral
$17.88B11.6810.28%3.72%9.78%1.27%
64
Neutral
$6.23B30.74106.47%0.56%18.40%54.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PIPR
Piper Sandler
333.79
76.42
29.69%
EVR
Evercore Partners
321.55
86.88
37.02%
SNEX
StoneX Group
102.17
49.12
92.59%
LAZ
Lazard
57.16
10.81
23.32%
MC
Moelis
72.11
9.97
16.04%
PJT
PJT Partners
179.00
61.44
52.26%

Piper Sandler Corporate Events

Executive/Board ChangesShareholder Meetings
Piper Sandler Approves Directors and Auditor at Annual Meeting
Positive
May 22, 2025

Piper Sandler held its Annual Meeting on May 22, 2025, where shareholders elected ten directors to serve until the 2026 meeting. The meeting also saw the approval of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025, and an advisory vote in favor of the officers’ compensation. These decisions reflect shareholder confidence in the company’s leadership and financial oversight, potentially strengthening its market position.

The most recent analyst rating on (PIPR) stock is a Hold with a $317.00 price target. To see the full list of analyst forecasts on Piper Sandler stock, see the PIPR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025