Vinci Compass Investments (NASDAQ:VINP) Posts Earnings Results, Misses Estimates By $0.02 EPS

Vinci Compass Investments (NASDAQ:VINP) posted its quarterly earnings data 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. Vinci Compass Investments had a return on equity of 13.13% and a net margin of 23.77%.The business had revenue of $54.05 million for the quarter, compared to analyst estimates of $56.12 million.

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 Trading Down 0.5%

Vinci Compass Investments stock traded down $0.04 during mid-day trading on Thursday, hitting $9.51. The stock had a trading volume of 21,311 shares, compared to its average volume of 68,564. The stock has a 50-day simple moving average of $9.80 and a two-hundred day simple moving average of $10.67. The company has a current ratio of 5.08, a quick ratio of 5.08 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $621.82 million, a PE ratio of 13.58 and a beta of 0.30. Vinci Compass Investments has a 12 month low of $9.22 and a 12 month high of $13.61.

Vinci Compass Investments Announces Dividend

The company also recently declared 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. The ex-dividend date is Tuesday, August 25th. This represents a $0.68 annualized dividend and a yield of 7.2%. Vinci Compass Investments’s dividend payout ratio (DPR) is currently 91.89%.

Insiders Place Their Bets

In other Vinci Compass Investments news, CFO Sergio Passos Ribeiro sold 5,626 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $9.59, for a total transaction of $53,953.34. Following the transaction, the chief financial officer directly owned 180,250 shares in the company, valued at approximately $1,728,597.50. This represents a 3.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Fernando Lovisotto sold 11,818 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $10.33, for a total transaction of $122,079.94. Following the completion of the transaction, the insider directly owned 989,231 shares in the company, valued at $10,218,756.23. This trade represents a 1.18% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 170,460 shares of company stock valued at $1,702,677. 49.31% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Vinci Compass Investments

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Goldman Sachs Group Inc. lifted its position in Vinci Compass Investments by 266.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 172,866 shares of the company’s stock valued at $1,749,000 after acquiring an additional 125,711 shares in the last quarter. Samlyn Capital LLC raised its position in Vinci Compass Investments by 3.5% in the 3rd quarter. Samlyn Capital LLC now owns 2,335,754 shares of the company’s stock valued at $25,109,000 after buying an additional 79,538 shares during the last quarter. Two Sigma Investments LP lifted its position in shares of Vinci Compass Investments by 347.1% in the third quarter. Two Sigma Investments LP now owns 74,880 shares of the company’s stock worth $805,000 after purchasing an additional 58,131 shares in the last quarter. JPMorgan Chase & Co. grew its position in Vinci Compass Investments by 12.9% in the third quarter. JPMorgan Chase & Co. now owns 334,743 shares of the company’s stock valued at $3,598,000 after purchasing an additional 38,154 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in shares of Vinci Compass Investments during the 4th quarter worth about $445,000. 34.07% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

VINP has been the topic of several recent analyst reports. Weiss Ratings downgraded Vinci Compass Investments from a “buy (b-)” rating to a “hold (c)” rating in a research report on Tuesday, June 16th. Zacks Research raised shares of Vinci Compass Investments to a “hold” rating in a research note on Thursday, April 16th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Vinci Compass Investments currently has an average rating of “Moderate Buy” and a consensus price target 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.