Piper Sandler Companies PIPR has announced a new share repurchase plan. The board of directors has approved the repurchase of up to $150 million worth of shares of PIPR’s outstanding stock.
The buyback program will be effective immediately and expire on Dec. 31, 2026.
Before this, a share repurchase authorization was announced in May 2022, which expired on Dec. 31, 2024. Under this, PIPR was authorized to buy back up to $150 million worth of shares.
PIPR’s Other Capital Distribution Actions
Share buybacks aside, Piper Sandler has been regularly raising dividends (hiked its dividend 11 times in the last five years), with the last increase of 8.3% to 65 cents per share. Based on last day’s closing price of $319.36, the company’s dividend yield currently stands at 0.80%.
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 latest one of $3.65 per share was announced this January and will be paid out in March.
Also, Piper Sandler is growing through strategic acquisitions. In August 2024, the company acquired Aviditi Advisors, an alternative investment bank providing full lifecycle services. The deal adds private capital advisory capabilities to the platform.
Over the years, the company has been enhancing its scale and capabilities through strategic buyouts. These have not only diversified its revenue base but also expanded PIPR’s sector coverage, geographical footprint and market share.
Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital distribution activities. Through this, Piper Sandler will keep enhancing shareholder value.
Over the past year, shares of PIPR have soared 73.6%, outperforming the 55.9% rally of the investment bank industry.
Image Source: Zacks Investment Research
Currently, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Finance Firms Taking Similar Steps
In January, Prosperity Bancshares PB announced a new stock repurchase program, under which it may repurchase up to 4.8 million shares or 5% of its outstanding common stock. The plan is set to expire on Jan. 21, 2026.
Prior to this, PB had a share buyback plan that authorized the repurchase of almost 4.7 million shares over a period of one year.
In December 2024, Victory Capital Holdings, Inc.’s VCTR board of directors announced its largest share repurchase program, authorizing up to $200 million in buybacks of its common stock through Dec. 31, 2026.
The new program follows the completion of a $100 million repurchase program, which VCTR announced in December 2023.
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