Vinci Compass Investments (NASDAQ:VINP) Releases Quarterly Earnings Results

Vinci Compass Investments (NASDAQ:VINP) announced its earnings results on Thursday. The company reported $0.21 EPS for the quarter, missing the consensus estimate of $0.30 by ($0.09), FiscalAI reports. Vinci Compass Investments had a return on equity of 12.65% and a net margin of 23.77%. The company had revenue of $60.54 million for the quarter, compared to the consensus estimate of $62.42 million.

Here are the key takeaways from Vinci Compass Investments’ conference call:

• Record recurring results: Fee-related earnings rose 39% year over year to BRL 107 million, while the FRE margin expanded to 34.3%. Management said organic fee-related revenue grew 12% and adjusted fee-related earnings grew 28%, excluding acquisitions and this quarter’s severance costs.
• VPCS could add a new source of growth and earnings: The planned AustralRe acquisition is expected to close in the first quarter of 2027 and, subject to approvals, to deliver double-digit accretion to distributable earnings per share. Management says permanent capital would support strategy seeding and move GP commitments out of the asset-management business.
• AUM reached BRL 363 billion, up 15% year over year, with BRL 4 billion of quarterly net inflows led by Global IP&S. Fundraising in some closed-end strategies was more moderate, though executives pointed to potential support from regulatory changes in Chile and Colombia.
• Cash earnings faced pressure: Adjusted distributable earnings were BRL 71 million, or BRL 1.07 per share, as lower realized financial income, higher financial expenses and minority interests offset growth in segment distributable earnings. Realized financial income fell 43% year over year amid capital calls.
• Net income reached a record BRL 184 million, but included a BRL 99 million unrealized gain related to the Galeão indemnification, which did not contribute to third-quarter distributable earnings. Management expects the gain to be realized in the fourth quarter.

Vinci Compass Investments Stock Performance

NASDAQ VINP opened at $8.81 on Friday. The stock has a market capitalization of $576.35 million, a P/E ratio of 12.27 and a beta of 0.31. Vinci Compass Investments has a one year low of $8.40 and a one year high of $13.61. The business has a 50 day simple moving average of $9.75 and a 200 day simple moving average of $10.34. The company has a debt-to-equity ratio of 0.38, a current ratio of 3.58 and a quick ratio of 3.58.

Vinci Compass Investments Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 27th will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 7.7%. The ex-dividend date of this dividend is Friday, November 27th. Vinci Compass Investments’s payout ratio is currently 97.14%.

Insiders Place Their Bets

In other Vinci Compass Investments news, insider Augusto Zaremba sold 21,222 shares of Vinci Compass Investments stock in a transaction dated Friday, October 9th. The stock was sold at an average price of $11.34, for a total transaction of $240,657.48. Following the completion of the transaction, the insider owned 1,016,742 shares in the company, valued at approximately $11,529,854.28. The trade was a 2.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Fernando Lovisotto sold 14,086 shares of the company’s stock in a transaction on Monday, October 19th. The stock was sold at an average price of $10.95, for a total value of $154,241.70. Following the sale, the insider owned 908,430 shares of the company’s stock, valued at $9,947,308.50. This trade represents a 1.53% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 241,712 shares of company stock worth $2,694,007 in the last quarter. 49.31% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on VINP. Zacks Research downgraded shares of Vinci Compass Investments from a “hold” rating to a “strong sell” rating in a research note on Thursday, September 10th. UBS Group dropped their price objective on Vinci Compass Investments from $12.00 to $10.50 and set a “buy” rating for the company in a research report on Monday. JPMorgan Chase & Co. cut their target price on shares of Vinci Compass Investments from $15.00 to $14.00 and set an “overweight” rating on the stock in a research report on Thursday, September 10th. Finally, Weiss Ratings downgraded Vinci Compass Investments from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, November 4th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $12.25.

Vinci Compass Investments Company Profile

Vinci Compass Investments is an alternative investment and asset-management firm with roots in Brazil. It provides investment products and services to institutional and individual clients, with strategies spanning private equity, infrastructure, real estate, credit and public markets. The company’s platform serves clients in Brazil and other Latin American markets. Its business traces its origins to Vinci Partners, founded in 2009, and its regional presence has expanded through the combination with Compass Group.