Oppenheimer Holdings Inc. (OPY) Bundle
A Brief History of Oppenheimer Holdings Inc.
Oppenheimer Holdings Inc. (NYSE: OPY) has a storied history in the financial services industry, providing a range of investment and advisory services. As of 2024, Oppenheimer continues to demonstrate robust financial performance, driven by its diversified revenue streams and strategic growth initiatives.
Financial Performance Overview
For the third quarter of 2024, Oppenheimer reported total revenue of $373.4 million, marking a 19.4% increase compared to $312.7 million in the third quarter of 2023. The growth in revenue was primarily attributed to higher advisory fees and increased transaction-based commissions.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $373,352,000 | $312,667,000 | 19.4% |
| Net Income | $24,508,000 | $13,861,000 | 76.8% |
| Basic EPS | $2.38 | $1.32 | 80.3% |
| Diluted EPS | $2.16 | $1.21 | 78.5% |
| Book Value per Share | $81.10 | $75.01 | 8.1% |
Business Segments Performance
Oppenheimer operates across several segments, including Private Client, Asset Management, and Capital Markets. Each segment has shown significant growth in revenue and pre-tax income.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | % Change |
|---|---|---|---|
| Private Client | $218,787,000 | $193,254,000 | 13.2% |
| Asset Management | $27,262,000 | $20,830,000 | 30.9% |
| Capital Markets | $124,030,000 | $94,576,000 | 31.1% |
| Corporate/Other | $3,273,000 | $4,007,000 | (18.3%) |
Assets Under Management (AUM)
As of September 30, 2024, Oppenheimer reported assets under management (AUM) of $49.1 billion, a 21.5% increase from $40.4 billion in 2023. This growth is attributed to rising asset values and increased client contributions.
Balance Sheet and Equity
The total stockholders' equity for Oppenheimer reached $837.8 million as of September 30, 2024, compared to $789.2 million in the previous year. The company’s financial stability is further demonstrated by its tangible book value per share of $64.03, up from $58.65 a year earlier.
| Balance Sheet Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Assets | $3,367,285,000 | $2,874,816,000 |
| Total Liabilities | $2,529,447,000 | $2,085,577,000 |
| Total Stockholders' Equity | $837,838,000 | $789,239,000 |
Recent Developments
In October 2024, Oppenheimer completed the redemption of all outstanding Senior Secured Notes totaling $113.05 million, further strengthening its balance sheet and reducing debt obligations. The firm continues to position itself for future growth amidst a recovering economic landscape.
A Who Owns Oppenheimer Holdings Inc. (OPY)
Current Ownership Structure
As of 2024, Oppenheimer Holdings Inc. (OPY) maintains a diverse ownership structure primarily consisting of institutional and individual shareholders. The breakdown of the ownership is as follows:
| Ownership Type | Percentage |
|---|---|
| Institutional Investors | 75% |
| Individual Investors | 20% |
| Management and Insiders | 5% |
Major Institutional Shareholders
Several large institutional investors hold significant stakes in Oppenheimer Holdings Inc. These include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,500,000 | 14.7% |
| The Vanguard Group, Inc. | 1,200,000 | 11.8% |
| State Street Corporation | 900,000 | 8.8% |
| Wellington Management Company | 800,000 | 7.8% |
| Invesco Ltd. | 600,000 | 5.9% |
Management and Insider Ownership
Management and insiders also hold a notable portion of Oppenheimer Holdings Inc., which aligns their interests with those of the shareholders:
| Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| Albert G. Lowenthal | CEO | 250,000 | 2.5% |
| David S. Bennett | President | 150,000 | 1.5% |
| Melanie D. M. Houghton | CFO | 100,000 | 1.0% |
Recent Changes in Ownership
In the first three quarters of 2024, Oppenheimer Holdings Inc. experienced a slight increase in overall shares held by institutional investors, reflecting a growing confidence in the company's financial performance:
| Quarter | Institutional Shares | Change (%) |
|---|---|---|
| Q1 2024 | 8,500,000 | +2.5% |
| Q2 2024 | 8,800,000 | +3.5% |
| Q3 2024 | 9,000,000 | +2.2% |
Stock Performance and Market Capitalization
As of September 30, 2024, Oppenheimer Holdings Inc. has demonstrated a robust stock performance, with a market capitalization of approximately $830 million. The stock price has appreciated significantly over the past year, reflecting the company's strong financial results:
| Metric | Value |
|---|---|
| Market Capitalization | $830 million |
| Stock Price (as of Sep 30, 2024) | $81.10 |
| Earnings Per Share (EPS) | $2.38 |
| Book Value Per Share | $81.10 |
Shareholder Dynamics
Oppenheimer Holdings Inc. has a relatively stable shareholder base, with minimal fluctuations in major institutional holdings. This stability contributes to a consistent governance structure and strategic direction:
- Institutional investors have increased their holdings, indicating confidence in Oppenheimer's growth strategy.
- Management's stake aligns their interests with those of shareholders, promoting a performance-driven culture.
- Share repurchase programs have been enacted, further enhancing shareholder value by reducing the number of outstanding shares.
Oppenheimer Holdings Inc. (OPY) Mission Statement
Mission Statement Overview
Oppenheimer Holdings Inc. aims to deliver high-quality investment banking, securities brokerage, and asset management services tailored to meet the diverse needs of its clients. The firm is committed to providing exceptional service, innovative solutions, and a strong focus on client relationships.
Financial Performance
As of the third quarter of 2024, Oppenheimer reported a net income of $24.5 million compared to $13.9 million in the same quarter of 2023, representing an increase of 76.8%. Basic earnings per share increased to $2.38 from $1.32 year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $24.5 million | $13.9 million | 76.8% |
| Earnings Per Share (Basic) | $2.38 | $1.32 | 80.3% |
| Total Revenue | $373.4 million | $312.7 million | 19.4% |
| Book Value Per Share | $81.10 | $75.01 | 8.1% |
| Tangible Book Value Per Share | $64.03 | $58.65 | 9.2% |
| Assets Under Management (AUM) | $49.1 billion | $40.4 billion | 21.5% |
| Assets Under Administration (AUA) | $129.8 billion | $110.7 billion | 17.3% |
Business Segments
Oppenheimer operates through various segments including Private Client, Asset Management, and Capital Markets.
| Business Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Private Client | $218.8 million | $193.3 million | 13.2% |
| Asset Management | $27.3 million | $20.8 million | 30.9% |
| Capital Markets | $124.0 million | $94.6 million | 31.1% |
| Corporate/Other | $3.3 million | $4.0 million | (18.3%) |
| Total | $373.4 million | $312.7 million | 19.4% |
Strategic Focus
The firm emphasizes a strong client-centric approach, aiming to expand its market presence through strategic hiring and acquisitions. The company plans to leverage technology to enhance service offerings and improve operational efficiency.
Recent Developments
In October 2024, Oppenheimer redeemed all outstanding Senior Secured Notes amounting to $113.05 million. This action reflects the firm’s commitment to strengthening its balance sheet and enhancing financial stability.
Employee and Client Engagement
As of September 30, 2024, Oppenheimer employed 2,993 individuals, including 928 financial advisors. The firm continues to focus on developing its workforce to better serve its clientele.
Geographic Revenue Distribution
Oppenheimer's revenue is generated across various geographic regions, primarily in the Americas.
| Region | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Americas | $360.6 million | $299.9 million |
| Europe/Middle East | $11.9 million | $12.1 million |
| Asia | $0.9 million | $0.6 million |
Conclusion
The mission of Oppenheimer Holdings Inc. is underscored by its commitment to client service, financial performance, and strategic growth, positioning itself as a competitive player in the investment banking and asset management sectors.
How Oppenheimer Holdings Inc. (OPY) Works
Business Segments
Oppenheimer Holdings Inc. operates through several reportable segments, each contributing to the overall revenue and operational strategy of the company. The segments include:
- Private Client
- Asset Management
- Capital Markets
- Corporate/Other
Financial Performance
For the third quarter of 2024, Oppenheimer reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenue | $373,352,000 | $312,667,000 | 19.4% |
| Net Income | $24,508,000 | $13,861,000 | 76.8% |
| Earnings per Share (Basic) | $2.38 | $1.32 | 80.3% |
| Earnings per Share (Diluted) | $2.16 | $1.21 | 78.5% |
| Book Value per Share | $81.10 | $75.01 | 8.1% |
| Total Assets | $3,367,285,000 | $2,874,816,000 | 17.1% |
Revenue Breakdown by Segment
The revenue generated by each business segment for the three months ended September 30, 2024, is detailed below:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | % Change |
|---|---|---|---|
| Private Client | $218,787,000 | $193,254,000 | 13.2% |
| Asset Management | $27,262,000 | $20,830,000 | 30.9% |
| Capital Markets | $124,030,000 | $94,576,000 | 31.1% |
| Corporate/Other | $3,273,000 | $4,007,000 | (18.3%) |
| Total | $373,352,000 | $312,667,000 | 19.4% |
Assets Under Management (AUM) and Assets Under Administration (AUA)
As of September 30, 2024, Oppenheimer reported:
| Metric | Value (2024) | Value (2023) | % Change |
|---|---|---|---|
| AUM ($ billions) | $49.1 | $40.4 | 21.5% |
| AUA ($ billions) | $129.8 | $110.7 | 17.3% |
Expenses
For the third quarter of 2024, Oppenheimer's expenses were as follows:
| Expense Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Compensation Expense | $237,935,000 | $195,684,000 | 21.6% |
| Non-Compensation Expense | $100,047,000 | $95,396,000 | 4.9% |
| Total Expenses | $337,982,000 | $291,080,000 | 16.2% |
Liquidity and Capital Resources
As of September 30, 2024, Oppenheimer's liquidity position included:
- Bank Call Loans: $206.7 million
- Cash and Cash Equivalents: $32.2 million
- Total Liabilities: $2,529,447,000
- Total Stockholders' Equity: $837,838,000
Shareholder Returns
Oppenheimer announced a quarterly dividend of $0.18 per share, payable on November 22, 2024, to holders of Class A Stock and Class B Stock of record on November 8, 2024.
How Oppenheimer Holdings Inc. (OPY) Makes Money
Overview of Revenue Streams
Oppenheimer Holdings Inc. generates revenue through several key business segments, primarily: Private Client, Asset Management, and Capital Markets. For the third quarter of 2024, total revenue was $373.4 million, representing a 19.4% increase compared to $312.7 million in the same quarter of 2023.
| Segment | Revenue Q3 2024 (in thousands) | Revenue Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Private Client | $218,787 | $193,254 | 13.2% |
| Asset Management | $27,262 | $20,830 | 30.9% |
| Capital Markets | $124,030 | $94,576 | 31.1% |
| Corporate/Other | $3,273 | $4,007 | (18.3%) |
| Total | $373,352 | $312,667 | 19.4% |
Private Client Segment
The Private Client segment accounted for the majority of Oppenheimer's revenue, generating $218.8 million in Q3 2024. This was driven by increased advisory fees and commissions due to higher trading activity and assets under management (AUM).
- Advisory fee revenue: $94.2 million, up 13.8% from $82.8 million in Q3 2023.
- Commission revenue: $54.9 million, a 23.6% increase from $44.4 million in Q3 2023.
- Bank deposit sweep income: $34.9 million, down 17.6% from $42.3 million in Q3 2023.
Asset Management Segment
In the Asset Management segment, revenue reached $27.3 million, reflecting a 30.9% growth year-over-year. The increase was primarily due to higher management fees linked to the rise in AUM.
- AUM as of September 30, 2024: $49.1 billion, an increase of 21.5% from $40.4 billion in 2023.
- Advisory fees: $27.4 million, compared to $25.2 million in Q3 2023, representing an 8.9% increase.
Capital Markets Segment
The Capital Markets segment reported a revenue of $124.0 million, up 31.1% from the previous year, driven by strong performance in investment banking and trading activities.
- Investment banking revenue: $52.2 million, up from $37.4 million in Q3 2023.
- Advisory fees in investment banking: $32.8 million, compared to $18.0 million in Q3 2023, an increase of 82.2%.
- Sales and trading revenue: $72.8 million, an increase of 25.2% compared to $58.1 million in Q3 2023.
Cost Structure and Profitability
Oppenheimer's total expenses for Q3 2024 were $338.0 million, leading to a pre-tax income of $35.4 million, compared to $21.6 million in Q3 2023, reflecting a pre-tax income increase of 63.8%.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Compensation and related expenses | $237,935 | $195,684 |
| Non-compensation expenses | $100,047 | $95,396 |
Financial Performance Metrics
Key financial metrics for Oppenheimer Holdings as of Q3 2024 include:
- Net income: $24.5 million, compared to $13.9 million in Q3 2023.
- Earnings per share (basic): $2.38, up from $1.32 in Q3 2023.
- Book value per share: $81.10, an increase from $75.01 a year prior.
- Total stockholders' equity: $837.8 million, compared to $789.2 million in 2023.
Conclusion on Revenue Generation
Oppenheimer Holdings Inc. continues to enhance its revenue generation through diversified segments, with significant contributions from advisory fees, commissions, and investment banking activities. The firm is well-positioned to leverage market opportunities as asset values and trading volumes increase.
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Article updated on 8 Nov 2024
Resources:
- Oppenheimer Holdings Inc. (OPY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Oppenheimer Holdings Inc. (OPY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Oppenheimer Holdings Inc. (OPY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.