Victory Capital Delivers Robust Earnings and Strategic Portfolio Refocus

Investment management firm Victory Capital Holdings is drawing investor attention following a strong quarterly performance and a commitment to shareholder returns through dividends. The company is also taking strategic steps to streamline its exchange-traded fund offerings.

For the third quarter of 2025, Victory Capital reported financial results that exceeded market expectations. Adjusted earnings per share (EPS) came in at $1.63, surpassing the consensus estimate of $1.60. Revenue saw significant growth, climbing 60.1% year-over-year to reach $361.2 million.

The firm's profitability metrics demonstrate continued strength. A net margin of 25.27% and a return on equity (ROE) of 24.23% highlight operational efficiency and management's effectiveness in generating value for equity holders.

A Reliable Income Proposition

Income-focused investors may find the company's dividend policy appealing. Victory Capital declared a quarterly cash dividend of $0.49 per share. Shareholders of record as of December 10, 2025, will receive this payment on December 23, 2025.

This translates to an annualized dividend of $1.96 per share, yielding approximately 3.1% based on the current share price. With a payout ratio around 50%, the dividend appears sustainable relative to the company's earnings.

Should investors sell immediately? Or is it worth buying Victory Capital?

Strategic ETF Portfolio Review

In a move to optimize its product lineup, a Victory Capital subsidiary announced plans to liquidate three specific ETFs. The funds affected are the VictoryShares WestEnd Economic Cycle Bond ETF (BMDL), the VictoryShares Hedged Equity Income ETF (HEJD), and the VictoryShares International Volatility Wtd ETF (CIL).

A clear timeline governs the process: creation of new shares will halt after market close on January 28, 2026. Trading of these ETFs will cease on January 29, 2026, with final liquidation scheduled for February 4, 2026. This action is part of the firm's routine product review to ensure its offerings align with client demand and market viability.

Market Sentiment and Institutional Holdings

Analyst sentiment toward Victory Capital shares remains broadly favorable. The consensus rating among covering firms is "Moderate Buy." Specifically, seven analysts recommend purchasing the stock, while four advise holding. The average price target stands at $74.89, suggesting potential upside from recent trading levels.

Individual analyst views provide nuance: The Goldman Sachs Group recently reaffirmed a "Buy" rating with a $76.00 price target. Conversely, JPMorgan Chase & Co. maintained a "Neutral" stance while slightly reducing its target from $71.00 to $70.00.

Institutional investors hold a significant majority, approximately 87.7%, of the company's shares. Notably, the New York State Common Retirement Fund substantially increased its stake during the second quarter, boosting its position by 176.9% to 44,926 shares. Victory Capital's market capitalization is approximately $4.08 billion.