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Victory Capital (VCTR) Stock Rises on New Share Repurchase Plan
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Victory Capital Holdings, Inc. (VCTR - Free Report) has announced a share repurchase plan. The board of directors has authorized the repurchase of up to an additional $15 million of common stock through Dec 31, 2023.
Following the favorable news, shares of VCTR gained 1.5% on the last day's trading.
The new repurchase plan will be initiated following the completion of Victory Capital's previous buyback program, which was announced this May. Under the May plan, the company was authorized to repurchase shares worth $15 million through Dec 31, 2022. As of Sep 30, 2021, $5.4 million worth of balance remained to be repurchased under the authorization.
Management remarked, "The primary use of our free cashflow remains supporting growth initiatives such as funding strategic acquisitions and reducing debt to enhance balance sheet flexibility."
The share buyback plan indicates VCTR's ability to generate strong cash flow and disciplined capital deployment efforts, while simultaneously investing in its business to drive growth.Additionally, the company has been pursuing growth through strategic acquisitions.
In November, it agreed to acquire 100% of WestEnd Advisors, LLC. The deal, expected to close before the end of 2021, will likely be immediately accretive to earnings per share. Per the deal, Victory Capital will make an upfront payment of $480 million at closing, with deferred earn-out payments over a number of years upon the satisfaction of certain revenue growth targets.
Supported by its cash flow strength and a decent balance sheet, Victory Capital is expected to continue with efficient capital deployment activities in the future. Through this, it will keep driving investor confidence in the stock.
Over the past six months, shares of Victory Capital have gained 10.7% against an 8.9% decline recorded by the industry.
Over the past couple of months, several other companies have rewarded shareholders with new share-repurchase programs. Some of these are Washington Trust Bancorp, Inc. (WASH - Free Report) , Columbia Financial, Inc. (CLBK - Free Report) and Navient Corporation (NAVI - Free Report) .
Washington Trust's board of directors approved the repurchase of about 5% of the outstanding common stock or 850,000 shares. WASH's new buyback plan expires on Dec 31, 2022.
As of Oct 31, 2021, Washington Trust had 17.3 million shares outstanding.
In early December,Columbia Financial announced a share repurchase plan. The board of directors approved the repurchase of up to 5 million shares or 4.6% of CLBK's current outstanding shares. The plan has no expiry date.
The new repurchase plan will be effective following the completion of Columbia Financial's previous buyback program, which was announced this February. Under this plan, the company was authorized to repurchase 5 million shares. As of Nov 30, 2021, 1.2 million shares remained to be repurchased under the authorization.
Last week,Navientannounced that its board of directors consented to a share buyback program of up to $1 billion with immediate effect. The strategic move will likely enhance shareholder value.
The new share repurchase authorization comes with no expiration date. Moreover, it is in addition to the $150-million unused buyback authorization (as of Sep 30, 2021) under the $1-billion program approved in October 2019. Navient anticipates completing the remainder of the 2019 authorization by 2021-end and expects to utilize $400 million of the new program in 2022.
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Victory Capital (VCTR) Stock Rises on New Share Repurchase Plan
Victory Capital Holdings, Inc. (VCTR - Free Report) has announced a share repurchase plan. The board of directors has authorized the repurchase of up to an additional $15 million of common stock through Dec 31, 2023.
Following the favorable news, shares of VCTR gained 1.5% on the last day's trading.
The new repurchase plan will be initiated following the completion of Victory Capital's previous buyback program, which was announced this May. Under the May plan, the company was authorized to repurchase shares worth $15 million through Dec 31, 2022. As of Sep 30, 2021, $5.4 million worth of balance remained to be repurchased under the authorization.
Management remarked, "The primary use of our free cashflow remains supporting growth initiatives such as funding strategic acquisitions and reducing debt to enhance balance sheet flexibility."
The share buyback plan indicates VCTR's ability to generate strong cash flow and disciplined capital deployment efforts, while simultaneously investing in its business to drive growth.Additionally, the company has been pursuing growth through strategic acquisitions.
In November, it agreed to acquire 100% of WestEnd Advisors, LLC. The deal, expected to close before the end of 2021, will likely be immediately accretive to earnings per share. Per the deal, Victory Capital will make an upfront payment of $480 million at closing, with deferred earn-out payments over a number of years upon the satisfaction of certain revenue growth targets.
Supported by its cash flow strength and a decent balance sheet, Victory Capital is expected to continue with efficient capital deployment activities in the future. Through this, it will keep driving investor confidence in the stock.
Over the past six months, shares of Victory Capital have gained 10.7% against an 8.9% decline recorded by the industry.
Currently, the company carries a Zacks Rank #3 (Hold). 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 other companies have rewarded shareholders with new share-repurchase programs. Some of these are Washington Trust Bancorp, Inc. (WASH - Free Report) , Columbia Financial, Inc. (CLBK - Free Report) and Navient Corporation (NAVI - Free Report) .
Washington Trust's board of directors approved the repurchase of about 5% of the outstanding common stock or 850,000 shares. WASH's new buyback plan expires on Dec 31, 2022.
As of Oct 31, 2021, Washington Trust had 17.3 million shares outstanding.
In early December,Columbia Financial announced a share repurchase plan. The board of directors approved the repurchase of up to 5 million shares or 4.6% of CLBK's current outstanding shares. The plan has no expiry date.
The new repurchase plan will be effective following the completion of Columbia Financial's previous buyback program, which was announced this February. Under this plan, the company was authorized to repurchase 5 million shares. As of Nov 30, 2021, 1.2 million shares remained to be repurchased under the authorization.
Last week,Navientannounced that its board of directors consented to a share buyback program of up to $1 billion with immediate effect. The strategic move will likely enhance shareholder value.
The new share repurchase authorization comes with no expiration date. Moreover, it is in addition to the $150-million unused buyback authorization (as of Sep 30, 2021) under the $1-billion program approved in October 2019. Navient anticipates completing the remainder of the 2019 authorization by 2021-end and expects to utilize $400 million of the new program in 2022.