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Victory Capital (VCTR) Announces New Share Repurchase Plan
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In an effort to boost shareholders’ wealth, Victory Capital Holdings, Inc. (VCTR - Free Report) announced a share repurchase plan. The company’s board of directors authorized the repurchase of up to $100 million of common stock through Dec 31, 2025.
VCTR has an existing share repurchase program in place. This March, the board of directors of this San Antonio, TX-based company authorized the repurchase of up to $100 million of common stock through Mar 31, 2025. As of Sep 30, 2023, $51.9 million worth of balance remained to be repurchased under the authorization.
David Brown, chairman and CEO of VCTR, commented, "This new repurchase authorization allows us to remain flexible and opportunistic with our capital allocation."
In addition to the share repurchase program, Victory Capital has a history of paying quarterly dividends. This November, VCTR announced a quarterly dividend of 32 cents per share. The dividend will be paid out on Dec 22 to shareholders of record as of Dec 11.
The company announced a dividend hike in February 2023 of 28% to 32 cents per share. It has increased its dividend eight times in the last five years. Based on the last day’s closing price of $33.15, the company’s dividend yield is currently 3.91% and its payout ratio is 29% of earnings.
Last month, Victory Capital posted solid third-quarter 2023 results. It reported quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.15 per share. Analysts seem bullish regarding the company’s 2023 earnings growth potential, with earnings estimates having been revised marginally upward over the past 30 days.
Supported by its cash flow and earnings strength, Victory Capital is expected to continue with efficient capital distribution activities in the future. Through this, it will keep driving investors’ confidence in the stock.
Over the past year, shares of Victory Capital have gained 20.3% compared with an 11.4% rise recorded by the industry.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #4 (Sell).
Over the past couple of months, several companies have rewarded shareholders with new and existing share-repurchase programs. Some of these are Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) and Provident Financial Holdings, Inc. (PROV - Free Report) .
MUFG declared progress on its share buyback activities. It announced that from Nov 15 through Nov 30, 2023, it repurchased 40,214,100 shares of its common stock for ¥51,012,638,435.
The repurchases were carried out through the company’s ¥400-billion share repurchase program announced on Nov 14, 2023. The plan authorized the company to buy back up to 400,000,000 shares, indicating 3.31% of the total shares outstanding (excluding treasury stock).
PROV also announced a share repurchase plan. Under the plan, the company’s board of directors authorized to buy back up to 350,353 shares or nearly 5% of its outstanding shares.
This new repurchase plan replaced the previous program, which was announced in April 2022, where the company was set to buy back approximately 364,259 shares. In April 2023, PROV announced an extension of the program for a year or until completed, whichever is earlier.
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Victory Capital (VCTR) Announces New Share Repurchase Plan
In an effort to boost shareholders’ wealth, Victory Capital Holdings, Inc. (VCTR - Free Report) announced a share repurchase plan. The company’s board of directors authorized the repurchase of up to $100 million of common stock through Dec 31, 2025.
VCTR has an existing share repurchase program in place. This March, the board of directors of this San Antonio, TX-based company authorized the repurchase of up to $100 million of common stock through Mar 31, 2025. As of Sep 30, 2023, $51.9 million worth of balance remained to be repurchased under the authorization.
David Brown, chairman and CEO of VCTR, commented, "This new repurchase authorization allows us to remain flexible and opportunistic with our capital allocation."
In addition to the share repurchase program, Victory Capital has a history of paying quarterly dividends. This November, VCTR announced a quarterly dividend of 32 cents per share. The dividend will be paid out on Dec 22 to shareholders of record as of Dec 11.
The company announced a dividend hike in February 2023 of 28% to 32 cents per share. It has increased its dividend eight times in the last five years. Based on the last day’s closing price of $33.15, the company’s dividend yield is currently 3.91% and its payout ratio is 29% of earnings.
Last month, Victory Capital posted solid third-quarter 2023 results. It reported quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.15 per share. Analysts seem bullish regarding the company’s 2023 earnings growth potential, with earnings estimates having been revised marginally upward over the past 30 days.
Supported by its cash flow and earnings strength, Victory Capital is expected to continue with efficient capital distribution activities in the future. Through this, it will keep driving investors’ confidence in the stock.
Over the past year, shares of Victory Capital have gained 20.3% compared with an 11.4% rise recorded by the industry.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Companies That Took Similar Action
Over the past couple of months, several companies have rewarded shareholders with new and existing share-repurchase programs. Some of these are Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) and Provident Financial Holdings, Inc. (PROV - Free Report) .
MUFG declared progress on its share buyback activities. It announced that from Nov 15 through Nov 30, 2023, it repurchased 40,214,100 shares of its common stock for ¥51,012,638,435.
The repurchases were carried out through the company’s ¥400-billion share repurchase program announced on Nov 14, 2023. The plan authorized the company to buy back up to 400,000,000 shares, indicating 3.31% of the total shares outstanding (excluding treasury stock).
PROV also announced a share repurchase plan. Under the plan, the company’s board of directors authorized to buy back up to 350,353 shares or nearly 5% of its outstanding shares.
This new repurchase plan replaced the previous program, which was announced in April 2022, where the company was set to buy back approximately 364,259 shares. In April 2023, PROV announced an extension of the program for a year or until completed, whichever is earlier.