VCTR - Victory Capital: Dividend Increase Share Repurchases Diversified Strategies And Cheap

2024-03-27 09:00:03 ET

Summary

• Victory Capital offers a diversified asset management model with 118 investment strategies and strong financial results.
• The company provides technology, distribution, and marketing support to its partners, which is likely to attract more asset managers.
• The stock repurchase agreement and decrease in share count may lead to increased stock demand. However, there are risks from changes in the regulatory framework or failed investment strategies.

Victory Capital Holdings, Inc. ( VCTR ) recently delivered an increase in dividend payments, and offers a diversified asset management model with 118 investment strategies. Asset managers will most likely continue to partner VCTR given the support with regard to technology, distribution, and marketing. Besides, the stock repurchase agreement and further share count decrease will most likely lead to stock demand. There are clear risks coming from changes in the regular framework, a financial crisis, or failed investment strategies. However, I do believe that VCTR appears cheap at 9.9x forward GAAP earnings.

Victory Capital

Victory Capital runs an asset management business that operates through a large number of subsidiaries, thus facilitating the internal organization of the company and its presence in regional markets internationally. The company has demonstrated strong financial results in recent years by carrying out a successful hybrid strategy between organic growth in its service offering and inorganic growth through acquisitions....

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