Vinci Compass Investments (NASDAQ:VINP) Announces Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Vinci Compass Investments (NASDAQ:VINP) issued its quarterly earnings results on Thursday. The company reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.30 by ($0.09), Zacks reports. Vinci Compass Investments had a return on equity of 12.65% and a net margin of 23.77%.

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

• Record recurring results: Fee-related earnings rose 39% year over year to BRL 107 million, while the FRE margin expanded to 34.3%. Management said organic fee-related revenue grew 12% and adjusted fee-related earnings grew 28%, excluding acquisitions and this quarter’s severance costs.
• VPCS could add a new source of growth and earnings: The planned AustralRe acquisition is expected to close in the first quarter of 2027 and, subject to approvals, to deliver double-digit accretion to distributable earnings per share. Management says permanent capital would support strategy seeding and move GP commitments out of the asset-management business.
• AUM reached BRL 363 billion, up 15% year over year, with BRL 4 billion of quarterly net inflows led by Global IP&S. Fundraising in some closed-end strategies was more moderate, though executives pointed to potential support from regulatory changes in Chile and Colombia.
• Cash earnings faced pressure: Adjusted distributable earnings were BRL 71 million, or BRL 1.07 per share, as lower realized financial income, higher financial expenses and minority interests offset growth in segment distributable earnings. Realized financial income fell 43% year over year amid capital calls.
• Net income reached a record BRL 184 million, but included a BRL 99 million unrealized gain related to the Galeão indemnification, which did not contribute to third-quarter distributable earnings. Management expects the gain to be realized in the fourth quarter.

Vinci Compass Investments Stock Performance

Shares of VINP traded down $0.06 during mid-day trading on Thursday, reaching $8.81. The company had a trading volume of 221,914 shares, compared to its average volume of 74,382. Vinci Compass Investments has a 52-week low of $8.40 and a 52-week high of $13.61. The company has a quick ratio of 3.58, a current ratio of 3.58 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $576.37 million, a P/E ratio of 12.59 and a beta of 0.31. The stock has a 50 day moving average of $9.77 and a two-hundred day moving average of $10.36.

Insider Activity

In related news, insider Augusto Zaremba sold 19,815 shares of Vinci Compass Investments stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $11.43, for a total transaction of $226,485.45. Following the completion of the transaction, the insider directly owned 915,442 shares in the company, valued at approximately $10,463,502.06. This trade represents a 2.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Fernando Lovisotto sold 13,452 shares of the business’s stock in a transaction that occurred on Friday, October 23rd. The shares were sold at an average price of $11.41, for a total value of $153,487.32. Following the completion of the transaction, the insider directly owned 875,954 shares of the company’s stock, valued at $9,994,635.14. The trade was a 1.51% decrease in their ownership of the stock. 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 ninety days, insiders have sold 241,712 shares of company stock worth $2,694,007. 49.31% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts have commented on VINP shares. JPMorgan Chase & Co. decreased their price objective on shares of Vinci Compass Investments from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Thursday, September 10th. Zacks Research lowered shares of Vinci Compass Investments from a “hold” rating to a “strong sell” rating in a research note on Thursday, September 10th. Weiss Ratings lowered shares of Vinci Compass Investments from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, November 4th. Finally, UBS Group reduced their target price on shares of Vinci Compass Investments from $12.00 to $10.50 and set a “buy” rating for the company in a report on Monday. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $12.25.

Vinci Compass Investments Company Profile

Vinci Compass Investments is an alternative investment and asset-management firm with roots in Brazil. It provides investment products and services to institutional and individual clients, with strategies spanning private equity, infrastructure, real estate, credit and public markets. The company’s platform serves clients in Brazil and other Latin American markets. Its business traces its origins to Vinci Partners, founded in 2009, and its regional presence has expanded through the combination with Compass Group.