Vinci Compass Investments (NASDAQ:VINP) Reaches New 1-Year Low - Time to Sell?

Key Points

• Vinci Compass Investments hit a new 52-week low, trading as low as $8.65 and recently down 1.2%. Its consensus analyst rating is “Hold,” with an average price target of $14.00, though Zacks downgraded the stock to “Strong Sell.”
• The company’s latest quarterly results fell short of expectations, reporting $0.19 in EPS versus a $0.21 consensus estimate and revenue of $54.05 million versus $56.12 million expected.
• Vinci Compass offers a high dividend yield of approximately 7.9%, based on an annualized $0.68 payout, but its 97.14% dividend payout ratio raises questions about distribution sustainability. Insiders have sold 241,712 shares worth about $2.7 million over the past three months.

Vinci Compass Investments Ltd. (NASDAQ:VINP - Get Free Report) reached a new 52-week low on Tuesday. The company traded as low as $8.65 and last traded at $8.6840, with a volume of 7,992 shares traded. The stock had previously closed at $8.72.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. JPMorgan Chase & Co. cut their price objective on Vinci Compass Investments from $15.00 to $14.00 and set an "overweight" rating for the company in a report on Thursday, September 10th. Weiss Ratings upgraded Vinci Compass Investments from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, October 23rd. Finally, Zacks Research lowered Vinci Compass Investments from a "hold" rating to a "strong sell" rating in a research report on Thursday, September 10th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $14.00.

Vinci Compass Investments Stock Down 1.2%

The company has a current ratio of 3.58, a quick ratio of 3.58 and a debt-to-equity ratio of 0.38. The business's fifty day moving average price is $9.90 and its two-hundred day moving average price is $10.50. The firm has a market cap of $563.55 million, a P/E ratio of 12.33 and a beta of 0.26.

Vinci Compass Investments (NASDAQ:VINP - Get Free Report) last posted its earnings results on Wednesday, August 12th. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.02). Vinci Compass Investments had a return on equity of 12.65% 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. As a group, equities research analysts anticipate that Vinci Compass Investments Ltd. will post 0.75 EPS for the current year.

Vinci Compass Investments Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Tuesday, August 25th were issued a dividend of $0.17 per share. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 7.9%. Vinci Compass Investments's dividend payout ratio is currently 97.14%.

Insider Transactions at Vinci Compass Investments

In related news, insider Fernando Lovisotto sold 14,086 shares of the firm's stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $10.95, for a total value of $154,241.70. Following the transaction, the insider directly owned 908,430 shares of the company's stock, valued at approximately $9,947,308.50. This trade represents a 1.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Augusto Zaremba sold 21,222 shares of the business's stock in a transaction that occurred on Friday, October 9th. The stock was sold at an average price of $11.34, for a total value of $240,657.48. Following the completion of the sale, the insider owned 1,016,742 shares of the company's stock, valued at approximately $11,529,854.28. This trade represents a 2.04% decrease in their ownership of the stock. 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 have sold 241,712 shares of company stock worth $2,694,007. 49.31% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Pension & Wealth Management Advisors Inc. boosted its holdings in Vinci Compass Investments by 6.3% during the third quarter. Pension & Wealth Management Advisors Inc. now owns 42,565 shares of the company's stock valued at $398,000 after acquiring an additional 2,541 shares during the period. Engineers Gate Manager LP increased its stake in shares of Vinci Compass Investments by 46.0% in the second quarter. Engineers Gate Manager LP now owns 16,279 shares of the company's stock worth $158,000 after purchasing an additional 5,129 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of Vinci Compass Investments in the second quarter worth about $54,000. Endure Capital Management LLC bought a new position in shares of Vinci Compass Investments in the first quarter worth about $3,531,000. Finally, Renaissance Technologies LLC lifted its position in shares of Vinci Compass Investments by 12.2% during the 1st quarter. Renaissance Technologies LLC now owns 84,900 shares of the company's stock worth $896,000 after purchasing an additional 9,264 shares during the last quarter. Institutional investors and hedge funds own 34.07% of the company's stock.

Vinci Compass Investments Company Profile

Vinci Compass Investments Ltd. is an alternative investment platform focused on Latin America. The company manages capital for institutional investors, family offices, high-net-worth individuals and other clients through a range of public- and private-market strategies.

Its investment activities include private equity, infrastructure, real estate, private credit, hedge funds, equities, fixed income and other customized investment solutions. Through its Vinci and Compass businesses, the company provides asset management and advisory services designed to give clients access to opportunities across Brazil and other Latin American markets.

Vinci Partners, the company's principal operating business, was founded in Brazil in 2009.

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