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

Vinci Compass Investments (NASDAQ:VINP) issued its earnings results on Thursday. The company reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates 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 Down 0.7%

VINP stock traded down $0.06 during mid-day trading on Thursday, reaching $8.81. 221,914 shares of the company traded hands, compared to its average volume of 74,382. The stock has a market cap of $576.37 million, a price-to-earnings ratio of 12.59 and a beta of 0.31. The company has a quick ratio of 3.58, a current ratio of 3.58 and a debt-to-equity ratio of 0.38. Vinci Compass Investments has a fifty-two week low of $8.40 and a fifty-two week high of $13.61. The firm’s 50 day moving average price is $9.77 and its 200 day moving average price is $10.36.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Zacks Research downgraded shares of Vinci Compass Investments from a “hold” rating to a “strong sell” rating in a research report on Thursday, September 10th. JPMorgan Chase & Co. decreased their price target 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. UBS Group lowered their price objective on shares of Vinci Compass Investments from $12.00 to $10.50 and set a “buy” rating on the stock in a report on Monday. Finally, 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. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Vinci Compass Investments presently has an average rating of “Hold” and a consensus target price of $12.25.

Insider Buying and Selling

In other news, insider Augusto Zaremba sold 19,815 shares of the firm’s stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $11.43, for a total value of $226,485.45. Following the transaction, the insider owned 915,442 shares in the company, valued at $10,463,502.06. This trade represents a 2.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 Vinci Compass Investments 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 transaction, the insider directly owned 875,954 shares in the company, valued at approximately $9,994,635.14. The trade was a 1.51% 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. Insiders have sold a total of 241,712 shares of company stock valued at $2,694,007 over the last three months. Corporate insiders own 49.31% of the company’s stock.

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.