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Piper Sandler
(NYSE:PIPR)
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Rating:67Neutral
Price Target:
$70.00
â–¼(-5.96% Downside)
Action:Downgraded
Date:09/30/26
The score is anchored by strong financial quality (high margins/ROE and zero debt) and a reasonable valuation with a solid dividend yield. These positives are materially tempered by weak technicals (price below all major moving averages with bearish MACD) and the company’s earnings/cash-flow cyclicality, which management also highlighted through guidance calling for variability and tougher comps.
Positive Factors
Strong profitability and operating leverage
Piper Sandler is converting revenue into substantial profits, with strong TTM margins and further operating leverage in Q2. This profitability supports reinvestment in talent and platforms while providing resilience across normal fluctuations in transaction activity.
Negative Factors
Highly cyclical and variable earnings
Piper Sandler’s transaction-based model exposes earnings and cash generation to M&A, issuance, trading volumes, and market conditions. Prior revenue declines and volatile cash flow show that strong current performance may not translate into consistent results throughout the cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and operating leverage
Piper Sandler is converting revenue into substantial profits, with strong TTM margins and further operating leverage in Q2. This profitability supports reinvestment in talent and platforms while providing resilience across normal fluctuations in transaction activity.
Read all positive factors
Piper Sandler Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which may need strategic attention.
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which may need strategic attention.
Data provided by:
The Fly
The FlyPiper Sandler (PIPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.66B
Dividend Yield3.04%
Average Volume (3M)702.45K
Price to Earnings (P/E)14.5
Beta (1Y)1.42
Revenue Growth32.10%
EPS Growth40.51%
CountryUS
Employees1,858
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)4.55
Shares Outstanding70,670,290
10 Day Avg. Volume1,045,823
30 Day Avg. Volume702,449
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)4.13
Price to Sales (P/S)2.97
P/FCF Ratio8.11
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$87.00Price Target Upside16.87% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.65
Revenue Forecast (FY)$2.08B
Piper Sandler Business Overview & Revenue Model
Company Description
Piper 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. I...
How the Company Makes Money
Piper Sandler primarily makes money by earning fees and commissions tied to capital markets and advisory activity.
1) Investment banking fees (advisory and underwriting): A major revenue source is fees from advising clients on mergers, acquisitio...
Piper Sandler Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based revenue and profit growth driven by Corporate Investment Banking and record advisory, municipal and equity brokerage results, alongside disciplined cost and capital return programs. Key challenges include fixed income weakness, ECM and financing quarter-to-quarter volatility, timing concentration in certain large transactions, and upward pressure on non-comp costs (occupancy, data/AI, and a prior litigation charge). Given the depth of the positive financial metrics, market leadership positions, and demonstrated cost discipline that outweigh the cited challenges and timing risks, the overall tone is constructive and confident while acknowledging near-term variability.Positive Updates
Strong Top-Line Growth and Profitability
Second quarter adjusted net revenues of $491 million, up 21% year-over-year, operating income of $107 million, operating margin of 21.8%, and adjusted diluted EPS of $1.04. First half net revenues of $961 million, up 22% year-over-year, and operating income up 42% versus prior year, demonstrating leverage in the model.
Negative Updates
Fixed Income Weakness
Fixed income revenues declined sequentially and year-over-year to $49 million in Q2; ongoing geopolitical events, interest-rate uncertainty and a flattening yield curve dampened client trading activity and lowered trading volumes.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth and Profitability
Second quarter adjusted net revenues of $491 million, up 21% year-over-year, operating income of $107 million, operating margin of 21.8%, and adjusted diluted EPS of $1.04. First half net revenues of $961 million, up 22% year-over-year, and operating income up 42% versus prior year, demonstrating leverage in the model.
Read all positive updates
Company Guidance
Piper Sandler guided third‑quarter net revenues to be in line with Q3 2025 and gave business‑level color: municipal financing revenues are expected to decline from the robust Q2 ($50M in Q2, 141 negotiated deals raising $5B par), equity brokerage is expected to follow a typical seasonal decline after a record Q2 ($63M; 6.6B shares traded YTD), and fixed‑income revenues are expected to be similar to Q2 ($49M); management said the firm enters the back half with a healthy pipeline and active client engagement but cautioned tougher year‑over‑year comps and variability in close rates, and reiterated its capital return posture with a Board‑approved quarterly cash dividend of $0.20 per share payable Sept. 11 (record Aug. 28) after returning $215M YTD (including $115M in dividends, $1.625 per share, and ~$101M in buybacks — ~1.3M shares; Q2 buybacks were ~391k shares for $31M).Piper Sandler Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.10B | 1.90B | 1.48B | 1.31B | 1.38B | 1.98B |
| Gross Profit | 2.03B | 1.78B | 1.48B | 1.30B | 1.37B | 1.97B |
| EBITDA | 515.58M | 412.92M | 245.48M | 159.96M | 165.38M | 484.22M |
| Net Income | 307.32M | 281.33M | 181.11M | 85.49M | 110.67M | 278.51M |
Balance Sheet | ||||||
| Total Assets | 2.33B | 2.59B | 2.26B | 2.14B | 2.18B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 304.23M | 809.41M | 482.83M | 383.10M | 365.62M | 970.97M |
| Total Debt | 175.01M | 116.35M | 98.82M | 164.16M | 234.77M | 214.63M |
| Total Liabilities | 759.43M | 1.01B | 840.16M | 841.51M | 927.53M | 1.34B |
| Stockholders Equity | 1.37B | 1.37B | 1.23B | 1.09B | 1.05B | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 604.50M | 697.53M | 297.76M | 265.58M | -255.51M | 686.51M |
| Operating Cash Flow | 623.74M | 732.19M | 313.25M | 275.63M | -224.91M | 707.09M |
| Investing Cash Flow | -144.42M | -178.01M | -31.77M | -10.05M | -127.10M | -20.58M |
| Financing Cash Flow | -296.30M | -229.94M | -180.61M | -249.59M | -250.06M | -223.12M |
Piper Sandler Technical Analysis
Negative
74.44
Price Trends
74.24
Negative
75.68
Negative
78.81
Negative
Market Momentum
-2.13
Positive
30.98
Neutral
13.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PIPR, the sentiment is Negative. The current price of 74.44 is above the 20-day moving average (MA) of 72.78, above the 50-day MA of 74.24, and below the 200-day MA of 78.81, indicating a bearish trend. The MACD of -2.13 indicates Positive momentum. The RSI at 30.98 is Neutral, neither overbought nor oversold. The STOCH value of 13.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.67B | 18.75 | 43.55% | 4.57% | 13.69% | 12.33% | |
72 Outperform | $3.65B | 15.75 | 71.16% | 0.71% | 22.91% | 21.48% | |
71 Outperform | $8.83B | 21.11 | 17.78% | 2.03% | 1.59% | -1.40% | |
70 Outperform | $10.58B | 7.73 | 16.07% | 1.89% | 11.04% | 60.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.66B | 14.49 | 22.90% | 3.04% | 32.10% | 40.51% | |
64 Neutral | $3.53B | 15.91 | 25.84% | 5.49% | 5.74% | -30.53% |
* Financial Sector Average
PIPR
Piper Sandler
65.36
-17.86
-21.46%
LAZ
Lazard
36.07
-13.62
-27.40%
SF
Stifel Financial
70.28
-2.71
-3.72%
MC
Moelis
56.32
-9.27
-14.14%
HLI
Houlihan Lokey
126.37
-71.58
-36.16%
PJT
PJT Partners
138.69
-39.71
-22.26%
Piper Sandler Corporate Events
Executive/Board Changes
Piper Sandler appoints new director to board
Positive
Sep 22, 2026
Effective September 22, 2026, Piper Sandler Companies expanded its Board of Directors from 10 to 11 members by electing Wendy L. Schoppert as a director for an initial term expiring at the 2027 annual meeting of shareholders, and appointing her to...
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.