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Piper Sandler (PIPR) Up on Additional Share Buyback Program

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Shares of Piper Sandler Companies PIPR gained 3.4% in aftermarket trading following the announcement of an additional share repurchase authorization. The board of directors has approved the repurchase of up to $150 million worth of shares of PIPR’s outstanding stock.

The buyback program, which is effective immediately and will expire on Dec 31, 2024, is in addition to the existing authorization. The current plan, announced in November 2021, became effective Jan 1, 2022, and expires on Dec 31, 2023. Under this, PIPR is authorized to repurchase up to $150 million worth of shares and has roughly $43 million remaining as of May 6, 2022.

Share buybacks aside, Piper Sandler has been regularly raising dividends (hiked its dividend nine times in the last five years), with the last increase of 9.1% to 60 cents per share. Based on last day’s closing price of $125.75, the company’s dividend yield currently stands at 1.91%, which is impressive compared with the industry’s yield of 0.21%.

Further, PIPR has a dividend policy with the intention of returning 30-50% of its annual adjusted net income to shareholders. In sync with this, the company on a regular basis announces special cash dividends. The last one was announced this February, and it paid out $4.50 per share.

Also, Piper Sandler is growing through strategic acquisitions. In February, the company wrapped up the acquisition of Cornerstone Macro. In January, it announced a deal to acquire Stamford Partners, which offers financial advisory and corporate development services in the European food and beverage and related consumer sectors. These, along with past transactions, are expected to keep supporting PIPR’s financials.

Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, Piper Sandler will keep enhancing shareholder value.

Over the past year, shares of PIPR have rallied 3.5% against a 15.9% decline of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


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Currently, the company carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Stocks That Took Similar Action

Capital One COF has been meaningfully deploying capital to enhance shareholders’ value. In sync with this, the company announced additional share repurchase authorization worth $5 billion, effective from third-quarter 2022.

The authorization is in addition to the $5 billion buyback plan for this year, which was announced this January. COF repurchased shares worth $7.5 million in 2021.

Valley National Bancorp VLY has announced a new share repurchase plan. The company’s board of directors approved a stock repurchase program for up to 25 million shares of VLY. The authorization to repurchase will expire on Apr 25, 2024.

Valley National has terminated its 2007 stock repurchase program.


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Piper Sandler Companies (PIPR) : Free Stock Analysis Report

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