Core Insights - Piper Sandler Companies has announced new leadership appointments in healthcare investment banking, consumer investment banking, and equity capital markets, reflecting the firm's growth and commitment to client service [1][2] Healthcare Investment Banking - Brandon Rice and Chad Huber have been appointed as co-heads of healthcare investment banking, with Rice focusing on M&A advisory and capital markets for medical technology companies, while Huber previously led equity capital markets for life sciences [5] - Peter Day will continue as co-head of healthcare investment banking [5] Consumer Investment Banking - Carlos Sanchez has been appointed co-head of consumer investment banking, focusing on M&A advisory across consumer sectors, while Damon Chandik and Janica Lane will continue in their roles as co-heads [5] Equity Capital Markets - Paul Scansaroli has been appointed global co-head of equity capital markets, previously managing healthcare equity capital markets, while David Stadinski will remain in his role as global co-head [5]

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of approximately 4% and has performed well over the last five years by engaging in international markets [1][2] - The Valkyrie Trading Society consists of analysts who share high conviction investment ideas in developed markets, targeting downside protection and non-correlated, outsized returns in the current economic environment [2] - The Value Lab provides members with real-time portfolio updates, 24/7 chat support, regular market news reports, feedback on stock ideas, monthly new trades, quarterly earnings write-ups, and daily macroeconomic opinions [2]

Core Viewpoint - Piper Sandler Companies has appointed J.P. Peltier as global co-head of investment banking and capital markets, effective immediately, reflecting the firm's commitment to leadership and growth [1][3] Group 1: Leadership Appointment - J.P. Peltier will serve alongside current global co-heads James Baker and Mike Dillahunt, bringing a proven track record and strong relationships to the firm [1][3] - The appointment is seen as a strategic move to position the firm for continued success and growth in investment banking [1] Group 2: Peltier's Background - Peltier previously served as global head of healthcare investment banking, leading a team of over 145 professionals across the U.S., Europe, and Asia [2] - He has extensive experience in advising on mergers and acquisitions, as well as public and private capital markets solutions [2] - Peltier has been with Piper Sandler since 1994 and has advised on many notable transactions in the medical technology sector [4] Group 3: Future Directions - Peltier will continue to support the growth of the healthcare practice while also contributing to other industry-leading groups within the firm [4] - The leadership team expresses confidence that Peltier's experience and innovative approach will enhance the firm's investment banking and capital markets platforms globally [3]

Core Insights - The Zacks Investment Bank industry is poised for growth due to improved clarity on trade and monetary policy, a resilient economy, and lower financing costs, which are expected to enhance M&A and underwriting activities in 2026 [1][5] - Investment in AI and technology may increase short-term costs but is anticipated to improve long-term operational efficiency, making companies like Morgan Stanley, Robinhood, and Piper Sandler attractive investment opportunities [2] Industry Overview - The Zacks Investment Bank industry includes firms that provide financial products and services, focusing on advisory transactions for corporations, governments, and financial institutions globally. The industry has evolved from initial public offerings and M&As to include securities research and investment management [3] Key Trends - The underwriting and advisory sectors are recovering after a slump due to geopolitical tensions and macroeconomic uncertainty, with optimism for a rebound fueled by a business-friendly administration and potential tax cuts [4] - Market volatility has increased since 2022, driven by geopolitical challenges, which has led to heightened client activity and solid trading income for investment banks [6] Technology and Efficiency - Investment banks are investing in innovative trading platforms and AI, which are expected to enhance operational efficiency despite rising technology-related expenses in the short term [7] Industry Ranking and Performance - The Zacks Investment Bank industry ranks 29 out of over 240 Zacks industries, indicating solid near-term prospects, with earnings estimates for 2025 and 2026 revised upward by 12.9% and 1%, respectively [8][9] - The industry has outperformed the S&P 500 and the broader finance sector, with a collective stock increase of 38.4% over the past year compared to 17.9% for the S&P 500 [11] Valuation Metrics - The industry has a trailing 12-month price-to-tangible book ratio (P/TBV) of 3.12X, which is above the five-year median of 2.20X, but still represents a discount compared to the S&P 500's 12.78X [15][17] Investment Opportunities - **Morgan Stanley**: A diversified investment banking firm with a market cap of $280.5 billion, expected to benefit from a favorable macroeconomic backdrop and a projected earnings increase of 22.8% and 5.8% for 2025 and 2026, respectively [19][23] - **Robinhood**: A financial services company with a market cap of $107.4 billion, focusing on global expansion and innovative financial products, with expected earnings growth of 79.8% and 17.9% for 2025 and 2026 [25][29] - **Piper Sandler**: An investment bank with a market cap of $5.7 billion, experiencing robust growth through strategic acquisitions, with projected earnings improvements of 22.5% and 6.2% for 2025 and 2026 [31][34]

Core Insights - Tompkins Financial Corporation has been included in Piper Sandler's "Sm-All Stars" list, recognizing its strong financial performance and effective long-term growth strategy [1][2] - The selection for the "Class of 2025" highlights Tompkins' consistent ability to achieve sustainable results in a challenging market environment [2] Company Overview - Tompkins Financial Corporation is headquartered in Ithaca, NY, and is the parent company of Tompkins Community Bank, which operates in Central, Western, and Hudson Valley regions of New York, as well as Southeastern Pennsylvania [3] - The bank offers a comprehensive range of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate services, and financial and tax planning [3] Leadership Statement - Stephen S. Romaine, President and CEO, emphasized that the recognition reflects the dedication of the team and the strength of the company's strategic approach, focusing on sound fundamentals and customer-centric solutions [3]

Core Insights - Piper Sandler Companies (PIPR) shows potential as a strong portfolio addition due to significant revisions in earnings estimates [1] - The upward trend in earnings estimate revisions reflects growing analyst optimism, which is likely to influence stock prices positively [2] Current-Quarter Estimate Revisions - The expected earnings per share (EPS) for the current quarter is $4.67, indicating a year-over-year decline of 2.7% [5] - Over the past 30 days, the Zacks Consensus Estimate for Piper Sandler has increased by 21.61%, with one estimate moving higher and no negative revisions [5] Current-Year Estimate Revisions - For the full year, the expected EPS is $15.54, representing a year-over-year increase of 22.5% [6] - The consensus estimate has risen by 12.28% over the past month, with one estimate moving higher and no negative revisions [7] Favorable Zacks Rank - The positive estimate revisions have led to a Zacks Rank of 1 (Strong Buy) for Piper Sandler, indicating strong investment potential [8] - Stocks with a Zacks Rank of 1 and 2 are shown to significantly outperform the S&P 500 [8] Bottom Line - Piper Sandler shares have increased by 5.2% over the past four weeks, suggesting investor confidence in its earnings growth prospects [9]

Core Insights - Piper Sandler Companies has appointed Michael Piper as the head of fixed income, effective in the first quarter of 2026 [1] - The previous head of fixed income, John Beckelman, will transition to vice chairman of fixed income capital markets and will focus on client engagement [1] - Michael Piper will report directly to Deb Schoneman, the president at Piper Sandler [1] Company Changes - The leadership change in the fixed income division indicates a strategic shift within Piper Sandler [1] - John Beckelman will continue to serve as a senior advisor, emphasizing the importance of client relationships in the firm's operations [1]

Core Viewpoint - Piper Sandler Companies is positioned for strong top-line growth due to its exposure to both structural and cyclical growth sectors within investment banking, with Goldman Sachs upgrading its rating to Buy and setting a price target of $386, indicating an 18% upside from recent trading levels [1]. Group 1: Revenue Growth Projections - Goldman Sachs projects a 12.5% revenue CAGR through 2027, which is approximately 200 basis points above its peers, driven by leadership in mid-cap M&A, financials, capital markets, tech M&A, and municipal finance, alongside stable margins and limited compensation leverage [2]. - The firm's M&A backlog has increased by about 110% since early 2024, significantly outperforming peer growth [3]. Group 2: Sector-Specific Insights - Piper Sandler's strong position in mid-cap M&A, which constitutes 65% of its fees since 2019, is notably higher than the group average of 48% [3]. - The firm is well-positioned to benefit from a rebound in financial sector activity, with global bank M&A expected to more than double its 10-year average in 2025 and U.S. bank M&A projected to rise by about 70% [5]. - Continued momentum in financials M&A and debt capital markets is anticipated, supported by potential deregulation and lower unrealized losses on bank balance sheets as interest rates decline, with Goldman estimating a 6-12% revenue and 10-18% EPS upside if the segment normalizes [6]. Group 3: Technology and Municipal Finance Growth - Piper Sandler's investment in the technology sector, which is the largest source of M&A fees, is a key growth driver, with expectations for further investments to enhance competitive positioning [7]. - The municipal finance business is expected to experience cyclical growth as interest rates decline, with Goldman projecting a 14% annual increase in muni finance revenue from 2024 to 2027, alongside specific revenue forecasts of $1.75 billion in 2025 and $1.99 billion in 2026 [8].

Core Insights - Piper Sandler exceeded Wall Street's revenue and non-GAAP profit expectations in Q3, but faced a negative market reaction [1] - The strong financial performance was attributed to increased activity in equity capital markets, particularly in health care and financial services [1] - The company has achieved 8 consecutive quarters of year-over-year growth, indicating consistent execution and sustained momentum [1] - Management cautioned that the high activity levels in corporate financing may not continue into the next quarter [1] Financial Highlights - Revenue reached $479.3 million, surpassing analyst estimates of $436.7 million, reflecting a 33.3% year-on-year growth and a 9.8% beat [6] - Adjusted EPS was $3.82, exceeding analyst estimates of $3.27, marking a 16.7% beat [6] - Adjusted EBITDA stood at $109.6 million, with a 22.9% margin and an 88.3% year-on-year growth [6] - Operating margin improved to 22.4%, up from 15.5% in the same quarter last year [6] - Market capitalization is currently $5.81 billion [6] Analyst Insights - Concerns were raised about the sustainability of the bank M&A surge, with significant uncertainties identified, including depository stock valuations and market volatility [6] - The CFO indicated that a 20% operating margin is not a ceiling, suggesting further leverage is possible as revenues scale [6] - Potential risks to corporate financing from a government shutdown were discussed, with warnings that prolonged disruptions could impact financing and M&A revenues [6] - The firm is described as "halfway" to its long-term goals in the technology sector, with ongoing priorities around talent acquisition and sector expansion [6] - Expectations for increased activity in fixed income as rates fall and the yield curve normalizes were mentioned, though timing remains uncertain [6]

Financial Performance - Net revenues for the three months ended September 30, 2025, were $479,276,000, representing a 33.3% increase from $359,572,000 in the same period of 2024[194]. - Net income attributable to Piper Sandler Companies for the three months ended September 30, 2025, was $60,266,000, a 73.2% increase compared to $34,789,000 in 2024[194]. - Adjusted net revenues for the three months ended September 30, 2025, were $455,314,000, a 29.4% increase from $351,844,000 in 2024[194]. - Investment banking revenues rose 36.9% to $330.6 million, compared to $241.5 million in the same period of 2024[208]. - Advisory services revenues increased by 12.9% to $212.4 million, driven by more completed transactions[208]. - Corporate financing revenues surged 345.3% to $79.7 million, up from $17.9 million in the prior-year period[208]. - Institutional brokerage revenues grew 8.5% to $109.5 million, compared to $100.9 million in the prior-year period[210]. - For the nine months ended September 30, 2025, total revenues increased by 18.3% to $1.24 billion compared to $1.05 billion in the prior-year period[235]. - Net income attributable to Piper Sandler Companies for the nine months ended September 30, 2025, was $167.4 million, a 49.4% increase from $112.1 million in the same period of 2024[233]. - Adjusted net income for the nine months ended September 30, 2025, was $194,793,000, up from $141,467,000 in 2024, reflecting a 37.7% growth[263]. Expenses and Costs - Non-interest expenses were $371.8 million, a 22.3% increase from $304.0 million in the prior-year period[214]. - Compensation and benefits expenses increased 25.1% to $288.9 million, with a compensation ratio of 60.3%[216]. - Deal-related expenses rose to $12.9 million, compared to $6.1 million in the prior-year period[222]. - Non-interest expenses on a U.S. GAAP basis were $1.05 billion for the nine months ended September 30, 2025, compared to $905.5 million in the corresponding period of 2024, reflecting a 15.7% increase[242]. - Restructuring and integration costs for the nine months ended September 30, 2025, totaled $6.0 million, significantly higher than $1.8 million in the prior-year period[246]. - Other operating expenses for the nine months ended September 30, 2025, were $16.3 million, an increase from $12.2 million in the same period of 2024[248]. Taxation - The effective tax rate for the three months ended September 30, 2025, was 23.2%, down from 27.4% in the same period of 2024[194]. - Provision for income taxes for the nine months ended September 30, 2025, was $34.8 million, with an effective tax rate of 18.7%[250]. - Adjusted provision for income taxes for the nine months ended September 30, 2025, was $43.5 million, with an adjusted effective tax rate of 18.2%[250]. Market and Business Outlook - Advisory services revenues for the fourth quarter of 2025 are expected to be similar to the fourth quarter of 2024, supported by a robust advisory services pipeline[198]. - Corporate financing revenues for the fourth quarter of 2025 are expected to moderate from the strong performance in the third quarter due to favorable market conditions[199]. - The equity brokerage business is anticipated to have its strongest quarter in the fourth quarter of 2025, following historical trends[200]. - Municipal financing revenues for the fourth quarter of 2025 are expected to be similar to the third quarter, with strong performance in both governmental and specialty sectors[202]. Shareholder Returns and Capital Management - The company repurchased 66,758 shares of common stock at an average price of $248.25 per share for a total of $16.6 million during the nine months ended September 30, 2025[274]. - A special cash dividend of $3.00 per share was declared on January 31, 2025, with a payment date of March 14, 2025[272][273]. - The board of directors declared dividends totaling $0.65 per share on October 31, 2025, with a payment date of December 12, 2025[272]. Assets and Liquidity - Total assets as of September 30, 2025, were $2,219,822,000, a decrease from $2,255,936,000 as of December 31, 2024[276]. - As of September 30, 2025, the company had $53.1 million of financing outstanding under the clearing arrangement with bank financing[283]. - The company has an unsecured revolving credit facility of $120 million with U.S. Bank N.A., with $10.0 million of advances against this facility as of September 30, 2025[284]. - As of September 30, 2025, the company's net capital was $243.2 million, exceeding the minimum requirement by $242.2 million[291]. Risk Management - Liquidity risk is present due to potentially illiquid inventory positions and the role as a remarketing agent for variable rate demand notes[318]. - Operational risk includes potential financial loss from inadequate processes, systems, or external events affecting transaction processing[328]. - Interest rate risk is managed by selling short U.S. government securities and establishing limits on long fixed income securities inventory[312]. - The company monitors market risk exposure through evaluation of spread DV01 and MMD basis risk for municipal securities[315]. Derivative and Credit Exposure - The fair value of derivative contracts was approximately $6.1 million as of September 30, 2025, compared to $3.3 million at the end of 2024[299]. - Concentrated counterparty credit exposure with three non-publicly rated entities totals $5.3 million, with one counterparty representing 86.5% of this exposure[327]. - The majority of fixed income securities inventory generally turns over within three weeks, evaluated based on a five-day average by category of security[314].