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

Vinci Compass Investments (NASDAQ:VINP) announced its quarterly earnings results on Tuesday. The company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.02), Zacks reports. The company had revenue of $54.05 million for the quarter, compared to analyst estimates of $56.12 million. Vinci Compass Investments had a return on equity of 13.13% and a net margin of 23.77%.

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

• Fee-related earnings rose 36% year over year to BRL 88.7 million, while the FRE margin expanded 450 basis points to 32.5%. Management reiterated its expectation for margins in the mid-30% range in the second half and remains on track toward its 38% target by 2028.
• Vinci Compass signed an agreement to acquire Navi Real Estate funds, adding approximately BRL 800 million in AUM and bringing pro forma real estate AUM to about BRL 7 billion. The transaction is expected to close in the fourth quarter and should be highly incremental to margins because the existing real estate team will manage the assets.
• The recently completed BACS combination added BRL 4 billion in AUM and is expected to provide a full-quarter contribution from the third quarter onward. BACS generated about BRL 4 million of revenue in June, carries margins near 50%, and is expected to add roughly 50 basis points to consolidated FRE margins in the second half.
• The company reported BRL 13 billion of capital formation and appreciation during the quarter and highlighted a broad second-half fundraising pipeline across credit, real assets, private equity, and global investments. Credit AUM surpassed BRL 42 billion, up 40% year over year, while upcoming opportunities include COPCO in Colombia, Lacan IV, SPS IV, and VIR5.
• Adjusted distributable earnings were BRL 63.3 million, pressured by a 63% year-over-year decline in realized financial income as capital calls reduced cash balances, along with weaker advisory and performance-related earnings. Corporate advisory activity also remained subdued, while management said global alternatives fundraising is taking longer and does not expect meaningful alternative inflows in the third quarter.

Vinci Compass Investments Price Performance

NASDAQ:VINP traded down $0.01 during trading hours on Thursday, hitting $9.54. 20,995 shares of the stock were exchanged, compared to its average volume of 68,561. The company has a market cap of $624.43 million, a P/E ratio of 13.64 and a beta of 0.30. The firm’s fifty day moving average price is $9.80 and its 200 day moving average price is $10.67. Vinci Compass Investments has a 52-week low of $9.22 and a 52-week high of $13.61. The company has a current ratio of 5.08, a quick ratio of 5.08 and a debt-to-equity ratio of 0.46.

Vinci Compass Investments Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Tuesday, August 25th will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 7.1%. The ex-dividend date is Tuesday, August 25th. Vinci Compass Investments’s payout ratio is presently 91.89%.

Insider Buying and Selling at Vinci Compass Investments

In other Vinci Compass Investments news, CFO Sergio Passos Ribeiro sold 13,061 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $10.00, for a total value of $130,610.00. Following the transaction, the chief financial officer owned 212,547 shares in the company, valued at approximately $2,125,470. This trade represents a 5.79% decrease in their position. The sale was disclosed in a document filed with the SEC, 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 11,818 shares of the company’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $10.33, for a total transaction of $122,079.94. Following the sale, the insider directly owned 989,231 shares of the company’s stock, valued at $10,218,756.23. The trade was a 1.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 170,460 shares of company stock valued at $1,702,677. 49.31% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Vinci Compass Investments

A number of institutional investors have recently added to or reduced their stakes in the stock. Samlyn Capital LLC boosted its stake in Vinci Compass Investments by 3.5% during the third quarter. Samlyn Capital LLC now owns 2,335,754 shares of the company’s stock worth $25,109,000 after buying an additional 79,538 shares during the last quarter. JPMorgan Chase & Co. increased its stake in shares of Vinci Compass Investments by 12.9% in the 3rd quarter. JPMorgan Chase & Co. now owns 334,743 shares of the company’s stock worth $3,598,000 after acquiring an additional 38,154 shares during the last quarter. State Street Corp raised its holdings in shares of Vinci Compass Investments by 15.0% during the 4th quarter. State Street Corp now owns 236,278 shares of the company’s stock worth $3,081,000 after acquiring an additional 30,904 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Vinci Compass Investments by 266.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 172,866 shares of the company’s stock worth $1,749,000 after acquiring an additional 125,711 shares during the period. Finally, FIL Ltd boosted its position in shares of Vinci Compass Investments by 5.9% during the 4th quarter. FIL Ltd now owns 135,971 shares of the company’s stock valued at $1,773,000 after acquiring an additional 7,618 shares during the last quarter. Hedge funds and other institutional investors own 34.07% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms recently commented on VINP. Zacks Research raised Vinci Compass Investments to a “hold” rating in a report on Thursday, April 16th. Weiss Ratings lowered Vinci Compass Investments from a “buy (b-)” rating to a “hold (c)” rating in a research report on Tuesday, June 16th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $14.00.

About Vinci Compass Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors.