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Victory Capital Unveils Share-Buyback Plan: Worth a Look?
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Victory Capital Holdings, Inc. (VCTR - Free Report) continues to reward its shareholders through dividend hikes or additional share repurchases. The company recently announced a new share-buyback plan with authorization to repurchase 15 million shares of its Class A common stock through Dec 31, 2020.
Such repurchases may be made in the open market, in privately-negotiated transactions, or otherwise. While the authorization does not have a fixed expiration date, the repurchase authorization does not obligate the company to repurchase any dollar amount or number of securities and may be suspended or discontinued any time.
Victory Capital has mostly completed the previous authorization of 15 million shares. Notably, the plan was announced in May 2018.
Notably, Victory Capital has also been paying quarterly dividends. The dividend of 5 cents per share was last announced this August.
With a solid liquidity and balance-sheet position, we believe Victory Capital will continue to reward its shareholders, moving ahead. So, keeping this in mind, is the company worth considering? Let’s dig deeper into its financials and fundamental strengths.
Value Score: Victory Capital currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Earnings Strength: Victory Capital’s earnings growth rate is anticipated to be around 53.7% for the current year and 55% for 2020. Further, the company recorded an average positive earnings surprise of 0.65%, over the trailing four quarters.
Revenue Growth: Organic growth is a key driver for Victory Capital, with its sales witnessing a compound annual growth rate of 19.7%, over the four-year period (2015-2018). The company’s projected sales growth (F1/F0) of 50.24% (against nil industry average) indicates continued improvement in revenues.
Superior Return on Equity (ROE): Victory Capital’s ROE is 22.15% compared with the industry average of 13.34%, highlighting the company’s commendable position over its peers.
Share Price Movement: Victory Capital has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for 2019 and 2020 displayed an upward trend. Furthermore, this Zacks Rank #1 stock has surged 53.5% year to date compared with the industry’s growth of 8.5%.
Artisan Partners Asset Management (APAM - Free Report) has been witnessing upward estimate revisions for the past 60 days. Further, the company’s shares have gained 20.9%, year to date. At present, it carries a Zacks Rank of 2.
Ameriprise Financial (AMP - Free Report) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has rallied around 23% year to date. It currently carries a Zacks Rank #2.
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Victory Capital Unveils Share-Buyback Plan: Worth a Look?
Victory Capital Holdings, Inc. (VCTR - Free Report) continues to reward its shareholders through dividend hikes or additional share repurchases. The company recently announced a new share-buyback plan with authorization to repurchase 15 million shares of its Class A common stock through Dec 31, 2020.
Such repurchases may be made in the open market, in privately-negotiated transactions, or otherwise. While the authorization does not have a fixed expiration date, the repurchase authorization does not obligate the company to repurchase any dollar amount or number of securities and may be suspended or discontinued any time.
Victory Capital has mostly completed the previous authorization of 15 million shares. Notably, the plan was announced in May 2018.
Notably, Victory Capital has also been paying quarterly dividends. The dividend of 5 cents per share was last announced this August.
With a solid liquidity and balance-sheet position, we believe Victory Capital will continue to reward its shareholders, moving ahead. So, keeping this in mind, is the company worth considering? Let’s dig deeper into its financials and fundamental strengths.
Value Score: Victory Capital currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Earnings Strength: Victory Capital’s earnings growth rate is anticipated to be around 53.7% for the current year and 55% for 2020. Further, the company recorded an average positive earnings surprise of 0.65%, over the trailing four quarters.
Revenue Growth: Organic growth is a key driver for Victory Capital, with its sales witnessing a compound annual growth rate of 19.7%, over the four-year period (2015-2018). The company’s projected sales growth (F1/F0) of 50.24% (against nil industry average) indicates continued improvement in revenues.
Superior Return on Equity (ROE): Victory Capital’s ROE is 22.15% compared with the industry average of 13.34%, highlighting the company’s commendable position over its peers.
Share Price Movement: Victory Capital has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for 2019 and 2020 displayed an upward trend. Furthermore, this Zacks Rank #1 stock has surged 53.5% year to date compared with the industry’s growth of 8.5%.
Other Stocks to Consider
T. Rowe Price Group (TROW - Free Report) has been witnessing upward estimate revisions for the past 60 days. Moreover, this Zacks #1 Ranked stock has rallied more than 19%, year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
Artisan Partners Asset Management (APAM - Free Report) has been witnessing upward estimate revisions for the past 60 days. Further, the company’s shares have gained 20.9%, year to date. At present, it carries a Zacks Rank of 2.
Ameriprise Financial (AMP - Free Report) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has rallied around 23% year to date. It currently carries a Zacks Rank #2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>