Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Piper Jaffray Cos (NYSE: PJC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.
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- Compared to its closing price of one year ago, PJC's share price has jumped by 38.52%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- PIPER JAFFRAY COS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PIPER JAFFRAY COS INC turned its bottom line around by earning $2.61 versus -$6.04 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus $2.61).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 66.3% when compared to the same quarter one year ago, falling from $7.40 million to $2.49 million.
- The gross profit margin for PIPER JAFFRAY COS INC is currently extremely low, coming in at 11.61%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.28% significantly trails the industry average.