Vinci Compass Investments (NASDAQ:VINP) Trading Down 4.6% Following Weak Earnings

Key Points

• VINP shares fell 4.6% after quarterly earnings of $0.19 per share missed analysts’ $0.21 estimate, while revenue of $54.05 million also came in below the $56.12 million consensus.
• The company declared a quarterly dividend of $0.17 per share, equal to $0.68 annually and a 7.1% yield; its payout ratio stands at 91.89%.
• Analyst sentiment remains moderately bullish, with a consensus “Moderate Buy” rating and a $14 target price, though insiders sold 175,722 shares worth about $1.76 million over the past three months.

Vinci Compass Investments Ltd. (NASDAQ:VINP - Get Free Report)'s share price was down 4.6% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $9.22 and last traded at $9.4450. Approximately 18,730 shares traded hands during trading, a decline of 73% from the average daily volume of 68,324 shares. The stock had previously closed at $9.90.

The company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.02). Vinci Compass Investments had a return on equity of 13.73% and a net margin of 26.75%.The business had revenue of $54.05 million for the quarter, compared to analysts' expectations of $56.12 million.

Vinci Compass Investments Dividend Announcement

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

Analyst Ratings Changes

VINP has been the topic of a number of recent analyst reports. Weiss Ratings cut Vinci Compass Investments from a "buy (b-)" rating to a "hold (c)" rating in a report on Tuesday, June 16th. Zacks Research upgraded Vinci Compass Investments to a "hold" rating in a report on Thursday, April 16th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $14.00.

Insider Activity

In other Vinci Compass Investments news, CFO Sergio Passos Ribeiro sold 13,061 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the chief financial officer directly owned 212,547 shares of the company's stock, valued at approximately $2,125,470. The trade was a 5.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 that occurred on Wednesday, June 17th. The stock was sold at an average price of $10.33, for a total value of $122,079.94. Following the completion of the sale, the insider owned 989,231 shares in the company, valued at approximately $10,218,756.23. This 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 175,722 shares of company stock valued at $1,757,330. Insiders own 49.31% of the company's stock.

Institutional Trading of Vinci Compass Investments

A number of hedge funds have recently added to or reduced their stakes in the company. Endure Capital Management LLC acquired a new position in shares of Vinci Compass Investments in the first quarter worth about $3,531,000. Renaissance Technologies LLC increased its stake in shares of Vinci Compass Investments by 12.2% in the 1st quarter. Renaissance Technologies LLC now owns 84,900 shares of the company's stock valued at $896,000 after purchasing an additional 9,264 shares in the last quarter. SPX Gestao de Recursos Ltda raised its holdings in Vinci Compass Investments by 16.8% in the 1st quarter. SPX Gestao de Recursos Ltda now owns 4,672,173 shares of the company's stock worth $49,291,000 after purchasing an additional 671,448 shares during the period. R Squared Ltd raised its holdings in Vinci Compass Investments by 6.4% in the 1st quarter. R Squared Ltd now owns 52,686 shares of the company's stock worth $556,000 after purchasing an additional 3,153 shares during the period. Finally, Deltec Asset Management LLC boosted its position in Vinci Compass Investments by 136.1% during the first quarter. Deltec Asset Management LLC now owns 59,934 shares of the company's stock worth $632,000 after purchasing an additional 34,553 shares in the last quarter. 34.07% of the stock is owned by hedge funds and other institutional investors.

Vinci Compass Investments Stock Performance

The company has a debt-to-equity ratio of 0.46, a current ratio of 5.08 and a quick ratio of 5.08. The firm has a fifty day simple moving average of $9.80 and a 200 day simple moving average of $10.70. The company has a market capitalization of $627.07 million, a price-to-earnings ratio of 12.95 and a beta of 0.30.

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.

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