Victory Capital (NASDAQ:VCTR) Sets New 1-Year High – Still a Buy?

Victory Capital Holdings, Inc. (NASDAQ:VCTR)’s stock price reached a new 52-week high on Wednesday . The company traded as high as $119.73 and last traded at $119.7410, with a volume of 336827 shares. The stock had previously closed at $115.34.

Key Victory Capital News

Here are the key news stories impacting Victory Capital this week:

• Positive Sentiment: Transformational acquisition: Victory Capital agreed to acquire First Eagle Investments for approximately $7 billion. The combination is expected to create a diversified global asset manager with roughly $571 billion in client assets, strengthening Victory’s competitive position and broadening its investment offerings. Reuters: Victory Capital to buy First Eagle Investments in $7 billion deal
• Positive Sentiment: Potential for stronger long-term growth: Analysts and growth-focused commentary point to Victory Capital’s solid earnings and revenue trajectory, with the First Eagle deal potentially adding scale, assets under management and future operating leverage. The company’s latest reported quarter also exceeded consensus expectations for both earnings and revenue. Zacks: 3 Reasons Growth Investors Will Love Victory Capital
• Neutral Sentiment: Shares at a fresh high: VCTR’s strong advance has brought the stock close to its 52-week peak. While momentum reflects investor optimism over the acquisition and company fundamentals, the elevated price raises the question of how much of the expected growth is already reflected in the shares. Zacks: Victory Capital Hits Fresh High
• Negative Sentiment: Deal and shareholder risks: Victory Capital is committing approximately $7 billion to the transaction, creating risks related to financing, integration, deal completion and achieving projected synergies. Halper Sadeh LLC also announced an investigation into whether shareholders are receiving a fair price, which could add legal or transactional uncertainty. Business Wire: Shareholder Investigation

Analyst Upgrades and Downgrades

A number of research firms have commented on VCTR. Royal Bank Of Canada raised their target price on shares of Victory Capital from $107.00 to $118.00 and gave the company an “outperform” rating in a research report on Friday, August 7th. Morgan Stanley set a $91.00 price target on shares of Victory Capital in a research report on Wednesday, July 29th. JPMorgan Chase & Co. increased their price objective on shares of Victory Capital from $87.00 to $101.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Barclays lifted their price objective on shares of Victory Capital from $95.00 to $112.00 and gave the company an “equal weight” rating in a report on Friday, August 7th. Finally, Wall Street Zen raised shares of Victory Capital from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, Victory Capital has an average rating of “Moderate Buy” and a consensus target price of $103.83.

Victory Capital Stock Up 0.4%

The firm has a market capitalization of $7.45 billion, a P/E ratio of 22.27, a PEG ratio of 1.01 and a beta of 1.08. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.29 and a current ratio of 1.29. The business’s fifty day moving average price is $100.19 and its two-hundred day moving average price is $84.65.

Victory Capital (NASDAQ:VCTR) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $2.21 EPS for the quarter, topping the consensus estimate of $1.79 by $0.42. Victory Capital had a net margin of 29.57% and a return on equity of 24.17%. The firm had revenue of $435.36 million during the quarter, compared to analyst estimates of $386.09 million. Equities analysts expect that Victory Capital Holdings, Inc. will post 7.63 earnings per share for the current fiscal year.

Victory Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Thursday, September 10th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Thursday, September 10th. Victory Capital’s payout ratio is currently 36.76%.

Institutional Trading of Victory Capital

Hedge funds and other institutional investors have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Victory Capital by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,469 shares of the company’s stock worth $1,416,000 after buying an additional 1,060 shares during the last quarter. Goldman Sachs Group Inc. increased its position in Victory Capital by 1.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 366,318 shares of the company’s stock valued at $21,199,000 after buying an additional 5,685 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Victory Capital by 10.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 98,285 shares of the company’s stock valued at $5,688,000 after buying an additional 9,319 shares during the last quarter. Jane Street Group LLC purchased a new stake in Victory Capital in the first quarter valued at about $3,747,000. Finally, Intech Investment Management LLC boosted its holdings in Victory Capital by 18.8% in the first quarter. Intech Investment Management LLC now owns 20,442 shares of the company’s stock worth $1,183,000 after acquiring an additional 3,237 shares in the last quarter. Hedge funds and other institutional investors own 87.71% of the company’s stock.

Victory Capital Company Profile

Victory Capital (NASDAQ:VCTR) is a global investment management firm that provides a broad range of strategies across equities, fixed income, multi-asset and alternative investments. Serving institutional, intermediary and retail clients, the company delivers tailored solutions through active, research-driven portfolio management. Its product lineup includes traditional mutual funds, separately managed accounts, sub-advisory services and specialized strategies such as ESG-focused and municipal bond portfolios.

Founded in 1988, Victory Capital has expanded its capabilities via both organic growth and strategic acquisitions, integrating experienced investment teams to enhance its offerings in areas like smart beta, global equity and fixed income.