Insider Confidence On Display: Michael Thomas Sipp Acquires $3.00M In Victory Capital Holdings Stock

A significant insider buy by Michael Thomas Sipp, Executive Vice President at Victory Capital Holdings VCTR, was executed on June 20, and reported in the recent SEC filing.

What Happened: Sipp made a significant move by purchasing 48,701 shares of Victory Capital Holdings as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $2,999,981.

As of Friday morning, Victory Capital Holdings shares are up by 0.53%, currently priced at $63.0.

Delving into Victory Capital Holdings's Background

Victory Capital Holdings Inc is an independent investment management firm. The company operates its business through franchises and solutions platform. It provides centralized distribution, marketing, and operations infrastructure to the company's franchises and solutions platform. The company operates through one business segment that is Investment management services and products to institutional, intermediary, retirement platforms, and individual investors. The franchises and solutions platform manages a variety of investment strategies for its customers. It derives majority of its revenues from asset-based fees from investment management products and services to individuals and institutions.

Breaking Down Victory Capital Holdings's Financial Performance

Positive Revenue Trend: Examining Victory Capital Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.73% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 73.94%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.97, Victory Capital Holdings showcases strong earnings per share.

Debt Management: Victory Capital Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.84, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 13.93 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.58 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 10.29, Victory Capital Holdings presents an attractive value opportunity.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Exploring the Significance of Insider Trading

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Victory Capital Holdings's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.