Stock Price & Analysis

Based on the analysis of Victory Capital Holdings Inc. (VCTR), the stock presents a compelling opportunity due to its strong fundamentals, improving analyst sentiment, and attractive dividend yield. With a current price of $59.07 and a dividend yield exceeding 3%, coupled with analyst price targets suggesting significant upside potential, now is a favorable time to consider purchasing VCTR stock.

The price prediction for VCTR stock in 2025 is $68. This forecast is driven by the company's strong Q4 performance, including record earnings and revenue, as well as the anticipated benefits from the Amundi acquisition and expansion of its ETF platform. Analysts maintain a "Strong Buy" consensus with a mean price target of $70.50, supporting this bullish outlook.

The S1 support level for VCTR Stock is $55.89 ,The R1 resistant level for VCTR Stock is $61.71.

As of the end of day on 2025-03-24, the price of VCTR Stock was $62.45.

The target price for VCTR Stock according to analyst rating is 74.13, with the highest price target at 89.00 and the lowest at 60.00. Analysts have a Moderate Buy rating on VCTR Stock overall.

The market cap of VCTR is $4.0B.

Analysis and Insights

Valuation Metrics:

VCTR's valuation metrics suggest potential overvaluation. The stock's PE ratio is higher than industry averages, indicating a premium price relative to earnings. The EV/EBITDA ratio is also elevated, reflecting a higher valuation compared to earnings before interest, taxes, depreciation, and amortization. Additionally, the PS ratio is above historical norms, signaling that investors are paying more for each dollar of revenue. The PB ratio exceeds 3, which is a key benchmark for asset managers, further raising concerns about overvaluation.

Technical Analysis:

From a technical perspective, VCTR is showing signs of weakness. The RSI is at 43.7, indicating the stock is not oversold but is in a bearish trend. The MACD is negative, and the stock is trading below its 50-day and 200-day moving averages, suggesting downward momentum. Fibonacci resistance levels at $60.60 are acting as a ceiling, and the stock has struggled to break above this level.

Analyst Sentiment:

Analysts have mixed opinions on VCTR. While some firms like BMO Capital have raised their price targets, the average upside potential is limited at around 7%. This modest upside, combined with a hold rating from major firms like Barclays, indicates cautious optimism but limited conviction in significant near-term appreciation.

Dividend Yield and AUM Trends:

VCTR's dividend yield is around 3%, which is attractive for income-focused investors. However, the unpredictability of dividends based on profitability is a concern. Recent AUM trends show stability, but net outflows remain a challenge, which could impact future financial performance.

Conclusion:

Based on the analysis, VCTR appears overvalued due to high valuation metrics, bearish technical indicators, and limited analyst upside. Investors should exercise caution and consider waiting for a price correction or improved fundamentals before entering a position.

Victory Capital Holdings, Inc. is a diversified global asset management firm. The Company provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 11 autonomous investment franchises and a solutions platform, the Company offers an array of investment products, including actively and passively managed mutual funds, rules-based and active exchange traded funds (ETFs), institutional separate accounts, variable insurance products (VIPs), alternative investments, private closed end funds, and a 529 Education Savings Plan. Its strategies are also offered through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts and unified managed accounts. Its franchises and our solutions platform collectively manage a diversified set of 118 investment strategies. The Company's investment adviser is Victory Capital Management Inc.

The price prediction for VCTR stock by 2030 is $85 per share. This forecast is based on the company's strong financial performance, including record revenues and expanding assets under management, as well as its strategic acquisitions and global expansion efforts, which are expected to drive long-term growth and increase shareholder value.

VCTR has a total of 481 employees.