On Friday, Piper Sandler Companies (NYSE:PIPR) shares advanced 5.65% after reporting its fiscal third-quarter results. The company announced its most recent quarterly results before the market opened, surpassing the consensus Street expectations for revenue and earnings. Piper Sandler also declared a quarterly dividend of $0.55 per share and a special dividend of $3.00.
The company posted FQ3 non-GAAP earnings per share of $4.55, exceeding the average analyst estimate of $3.77. On the other hand, its GAAP EPS of $2.64 was $0.34 ahead of estimates, while revenue for the quarter surged 46.7% from FQ3 in 2020 to $445.6 million, surpassing analyst estimates by $41.96 million.
Is it too late to buy PIPR stock?
From an investment perspective, Piper Sandler shares trade at attractive trailing 12-month and forward P/E ratios of 15.92 and 11.54, respectively. Therefore, the stock could be a compelling option for short-term bargain hunters.
On the other hand, analysts expect PIPR’s earnings per share to decline by 57.30% this year before falling 19.46% next year. As a result, growth investors could opt for alternatives in the market.
The stock is up nearly 66% this year and more than 97% over the last 12 months. Therefore, it could be time to take some profits.
Source – TradingView
Technically, Piper Sandler shares seem to be trading within an ascending channel formation in the intraday chart. As a result, the stock has surged closer to the overbought conditions of the 14-day RSI.
However, with shares yet to retest the resistance levels, investors could target extended gains at about $171.27, or higher at $178.50. On the other hand, if the stock pulls back to avoid crossing to overbought conditions, it could find support at $158.06 and $150.21.
Room for more gains?
In summary, although Piper Sandler shares seem poised for a pullback after rallying closer to overbought conditions, its current valuation and the recent earnings beat could be a catalyst for a bigger rally.
Therefore, the bull run may not be over yet.
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