Cohen & Company, Inc. (COHN) stock prices were down by a marginal 6.65% some time after market trading commenced on July 9th, 2021, bringing the price per share down to USD$25.25 early on in the trading day.
Net Income
Net income for the first quarter of 2021, ended March 31st, 2021, came out to USD$9.4 million, representing a net income of USD$6.98 per diluted share. This is comparable to the USD$3.1 million net loss reported for the prior-year quarter, representing a net loss of USD$7.64 per diluted share.
Revenue Reports
Revenues for the quarter were up USD$36.3 million as compared to the prior quarter, with the year-over-year increase being largely attributable to an increase of USD$1.1 million in net trading revenue. A USD$1.7 million decrease in asset management revenue also contributed to the difference, with the decrease being related to an incentive allocation earned by the company’s SPAC funds manager in the prior quarter.
Dissecting Comparative Revenue Reports
Further compounding the difference was an increase of USD$0.1 million in new issue and advisory revenue associated with insurance asset origination in Europe and the U.S. Most significantly, the company reported USD$36.8 million in the increase in principal transactions related to the closing of COHN’s second sponsored SPAC in February 2021. The move generated USD$73.2 million of principal transactions revenue for Q1 2021, partially offset by a reduction of USD$37.8 million in principal revenue generated from the closing of the company’s first sponsored insurance SPAC in the previous quarter.
Liquidity Position
The company reported USD$154.7 million in total equity as of March 31st, 2021, up from the USD$101.4 million reported as of December 31st, 2020. the non-convertible non-controlling interest component of total equity was USD$45 million as of March 31st, 2021, while the company reported USD$27.8 million as of December 31st, 2020. Accordingly, the total equity excluding the non-convertible, non-controlling interest component was USD$109.7 million as of March 31st, 2021, a USD$36.1 million increase from the USD$73.6 million reported as of December 31st, 2020.
Contextualizing COHN and its Future Outlook
With promising financials reported earlier in the quarter, COHN stocks have seen trading volume surge recently, positively impacting the company’s equity value. With the activity not being volatile enough to attribute to the meme stock phenomenon, the company seems to have caught the eyes of day traders who are capitalizing on the snowballing upward trajectory of the stock price. Long term investors are hopeful that the company will be able to leverage its resources to usher in more organic growth over the long term.
