Back to top

Image: Bigstock

Victory Capital (VCTR) Stock Jumps 5.3%: Will It Continue to Soar?

Read MoreHide Full Article

Victory Capital Holdings (VCTR - Free Report) shares ended the last trading session 5.3% higher at $29.75. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.6% gain over the past four weeks.

Victory Capital extended its rally for the second consequent day and touched a new 52-week high of $30.00. Bullish investors sentiments stemmed from announcement of the fourth consecutive hike in cash dividends since August 2020 and robust first quarter 2021 performance.

Victory Capital announced a cash dividend of 12 cents per share, representing a 33% increase from the prior payout. This new dividend will be paid out on Jun 25 to shareholders of record as of Jun 10.

Further, Victory Capital’s adjusted earnings of $1.03 per share jumped 24% year over year. Results reflected a 4% growth in revenues driven by higher average assets under management (AUM) balance.

During the quarter, total AUM balance of $154.3 million soared 25% year over year. Further, Victory Capital is undertaking efforts to lower its debt burden. During the first quarter, it reduced outstanding debt by $50.0 million and amended the terms of the 2019 credit agreement.
 

Price and Consensus

Price Consensus Chart for VCTR

This investment management firm is expected to post quarterly earnings of $1.12 per share in its upcoming report, which represents a year-over-year change of +40.0%. Revenues are expected to be $215.86 million, up 18.68% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Victory Capital, the consensus EPS estimate for the quarter has moved marginally upward over the last 30 days. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on VCTR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Victory Capital Holdings, Inc. (VCTR) - free report >>

Published in