Taking Stock of Siebert Financial’s Risk Factors

Siebert Financial Corp. (SIEB) provides a range of brokerage and financial services.

In August, Siebert announced the acquisition of a 24% stake in Tigress Financial Partners. In consideration, Tigress Financial will receive 24% of WPS Prime Services, a subsidiary of Siebert, and common shares of Siebert.

Let’s take a look at the company’s latest financials, along with what has changed in its key risk factors that investors should be aware of.

In Q2, driven by its Securities Finance and Market Making divisions, Siebert’s revenue increased 33% year-over-year to $16.8 million. Retail customer net worth surged to $16 billion, from $14.6 billion at the end of 2020.

Andrew Reich, Siebert CFO, remarked, “We continue to identify opportunities to drive revenue, profitability, and improve efficiencies, including implementing cost-saving measures to reduce our occupancy expenses and reduce fixed vendor costs.”

Siebert’s pre-tax income jumped 291% year-over-year to $1.9 million. Consequently, its earnings per share jumped to $0.05 from $0.02 a year ago. (See Siebert Financial stock charts on TipRanks)

Shares are down 31.9% over the past six months.

Risk Factors

According to the new TipRanks Risk Factors tool, Siebert’s main risk category is Finance & Corporate, accounting for 38% of the total 21 risks identified. Since June, the company has changed one key risk factor under the Finance & Corporate risk category.

Siebert highlighted that there may be a limited public market for its common shares. Approximately 43% of Siebert’s stock is held by non-affiliates, hence the available float of the company is small, and its shares may be more volatile.

The sector average Finance & Corporate risk factor is 58%.