Victory Capital (VCTR) ETF Lineup Streamlined: What the Fund Liquidations Could Mean for Its Valuation

Victory Capital Holdings (VCTR) is streamlining its ETF lineup, moving to liquidate three VictoryShares funds after a routine review of client demand and product fit. For shareholders, this is less drama and more housekeeping.

See our latest analysis for Victory Capital Holdings.

The tidy up comes after a choppier spell for the stock, with a 90 day share price return of minus 8.5 percent and year to date share price return of minus 4.7 percent. However, a powerful three year total shareholder return of about 149 percent suggests longer term momentum is still firmly intact even as near term sentiment cools.

If this kind of portfolio cleanup has you rethinking where the real growth stories might be, now could be a smart moment to explore fast growing stocks with high insider ownership.

With earnings still growing briskly and the share price sitting below analyst targets, the question now is whether Victory Capital remains undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative Narrative: 14.8% Undervalued

With Victory Capital shares last closing at $62.76 versus a narrative fair value of $73.67, the gap points to meaningful upside if forecasts land as expected.

The strategic realization of substantial expense synergies from the recent acquisition (with $70 million already realized and an additional $40 million anticipated within the next 15 months) increases operational efficiency, which should positively impact net margins and cash flow as integration progresses.

Read the complete narrative.

Curious how double digit revenue growth, rising profit margins, and a lower future earnings multiple can still add up to upside from here? The full narrative explains the math behind that apparent contradiction step by step and shows how those moving parts combine to support today’s fair value call.

Result: Fair Value of $73.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained net outflows and ongoing fee compression could derail the margin story ahead, especially if competition intensifies and acquisition benefits disappoint.

Find out about the key risks to this Victory Capital Holdings narrative.

Build Your Own Victory Capital Holdings Narrative

If you see the story differently or simply want to dig into the numbers yourself, you can build a personalized view in minutes: Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Victory Capital Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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