Piper Jaffray Companies
) achieved a new 52-week high of $56.26 in the first half of the
trading session on Aug 25. The stock closed the session at $55.53,
reflecting a year-to-date return of 41.3%. The trading volume for
the session was 147,044 shares.
Despite the strong price appreciation, this Zacks Rank #1 (Strong
Buy) stock has plenty of upside left, given the upward estimate
revisions it witnessed over the last 60 days.
Strong second-quarter 2014 results as well as renewal of the share
buyback plan were the primary growth drivers. Notably, the company
reported 23.5% year-over-year growth in assets under management
On Jul 31, Piper Jaffray announced a new share repurchase plan of
$100 million - starting from Oct 1, 2014 and ending on Sep 30,
2016. This plan will reinstate the existing $100 million repurchase
program that expires on Sep 30, 2014. The company had 16.3 million
shares remaining under the existing plan as of Jul 18, 2014.
Moreover, reported on Jul 24, Piper Jaffray's second-quarter
adjusted earnings came in substantially higher at $1.25 per share
from the prior-year quarter figure of 32 cents. Though, the figure
came in line with the Zacks Consensus Estimate, the overall results
benefited from the 63.4% year-over-year surge in adjusted net
revenues, partly offset by higher expenses.
Piper Jaffray is well poised for organic as well as inorganic
growth, given its strong AUM and robust capital base. Though
litigation costs are leading to increased expenses for Piper
Jaffray, the company looks forward to enhanced growth triggered by
impressive performance in the Asset Management and Investment
Estimate Revisions Show Strength
Over the last 60 days, the Zacks Consensus Estimate for 2014
witnessed a 15% upward revision to $4.13 per share. For 2015, the
Zacks Consensus Estimate rose 7.1% to $3.90 per share over the same
Other finance stocks worth considering include Arlington Asset
Investment Corp. (
), Moelis & Company (
) and RCS Capital Corporation (
). All these hold the same Zacks Rank as Piper Jaffray.
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