Piper Sandler Companies Announces Share Repurchase Authorization

Rhea-AI Summary

Piper Sandler Companies (NYSE: PIPR) has authorized a $150 million share repurchase program effective immediately, set to expire on December 31, 2024. This initiative aims to enhance shareholder value and counteract the dilutive impact of employee equity-based compensation. The new program adds to an existing $43 million authorization, which is set to expire on December 31, 2023. These steps are part of the company’s strategic capital allocation.

Positive

• New share repurchase program of $150 million to enhance shareholder returns.
• Continued commitment to shareholder value with existing $43 million repurchase capacity.

Negative

• Dependence on operational performance and profitability for executing repurchase, raising risk factors.

MINNEAPOLIS--(BUSINESS WIRE)-- Piper Sandler Companies (NYSE: PIPR), a leading investment bank, announced today that its board of directors has authorized the repurchase of up to $150 million of the company's outstanding common stock. This authorization is effective immediately and will expire on December 31, 2024. The share repurchase program will be used as part of the company’s capital allocation strategy, which includes returning capital to its shareholders, and to offset the dilutive effect of employee equity-based compensation.

This share repurchase authorization is in addition to the company’s existing share repurchase authorization which became effective on January 1, 2022, and expires on December 31, 2023. The company has $43.0 million remaining under the existing repurchase authorization.

Cautionary Note Regarding Forward-Looking Information

This announcement contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are subject to significant risks and uncertainties that are difficult to predict. These forward-looking statements cover, among other things, statements made about our share repurchase plans, our liquidity and capital resources or other similar matters. These statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements, including (1) our ability to effect the repurchase program depends in part upon our results of operations and profitability and may be impacted by negative operating conditions, (2) an inability to access capital readily or on terms favorable to us could impair our ability to effect the repurchase program, and (3) other factors identified under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, and updated in our subsequent reports filed with the SEC. These reports are available at www.pipersandler.com or www.sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.

Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in Europe through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Sandler Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Alternative asset management and fixed income advisory services are offered through separately registered advisory affiliates.

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©2022. Since 1895. Piper Sandler Companies. 800 Nicollet Mall, Minneapolis, Minnesota 55402-7036

View source version on businesswire.com: https://www.businesswire.com/news/home/20220506005519/en/

Pamela Steensland

Tel: 612 303-8185

pamela.steensland@psc.com

Tim Carter

Chief Financial Officer

Tel: 612 303-5607

timothy.carter@psc.com

Source: Piper Sandler Companies

FAQ

What is the purpose of Piper Sandler's $150 million share repurchase?

The repurchase aims to enhance shareholder value and mitigate dilution from employee equity compensation.

When does the new share repurchase program for PIPR expire?

The new program expires on December 31, 2024.

How much remaining capacity is there under Piper Sandler's existing share repurchase authorization?

There is $43 million remaining under the existing authorization, which expires on December 31, 2023.

What risks are associated with Piper Sandler's share repurchase program?

The ability to execute the program depends on operational performance and profitability.

Is the share repurchase program a sign of confidence in Piper Sandler's future?

Yes, it reflects the company's strategy to return capital to shareholders and confidence in its financial health.