Carlyle Group Inc. (Trades, Portfolio), a renowned investment firm, recently acquired a significant stake in Vertical Capital Income Fund (VCIF, Financial). This article provides an in-depth analysis of the transaction, the profiles of both the guru and the traded company, and the potential impact on the stock market.
Details of the Transaction
On July 14, 2023, Carlyle Group Inc. (Trades, Portfolio) purchased 844,031 shares of Vertical Capital Income Fund at a price of $7.91 per share. This transaction had a 0.2% impact on Carlyle's portfolio and increased their total holdings in VCIF to 844,031 shares, representing 8.10% of the company's stock. The transaction has positioned VCIF to account for 0.2% of Carlyle's portfolio.
Profile of the Guru: Carlyle Group Inc. (Trades, Portfolio)
Carlyle Group Inc. (Trades, Portfolio), based in Washington, DC, is a global investment firm with a diverse portfolio of 30 stocks, valued at $3.35 billion. The firm's top holdings include GDS Holdings Ltd (GDS, Financial), MKS Instruments Inc (MKSI, Financial), QuidelOrtho Corp (QDEL, Financial), ZoomInfo Technologies Inc (ZI, Financial), and Vitru Ltd (VTRU, Financial). The technology and healthcare sectors dominate Carlyle's investments.
Overview of the Traded Company: Vertical Capital Income Fund
Vertical Capital Income Fund (VCIF, Financial) is a diversified, closed-end management investment company based in the USA. The company, which operates in a single segment, seeks to generate income through investments in Mortgage Notes secured by residential real estate. As of July 17, 2023, VCIF has a market capitalization of $81.809 million and a stock price of $7.88. The company's PE percentage stands at 342.61. However, due to insufficient data, the GF valuation cannot be evaluated.
Performance of the Traded Stock
Since the transaction, VCIF's stock has seen a slight decrease of 0.38%. Since its IPO on May 29, 2019, the stock has declined by 19.18%. The year-to-date price change ratio is -10.25%. The GF score of the stock is 39, indicating poor future performance potential.
Financial Health of the Traded Company
VCIF's financial health is reflected in its cash to debt ratio of 0.64, ranking 970th. The company's ROE and ROA are 0.21 and 0.20 respectively, ranking 739th and 731st. The company's F score is 3, and its Z score is not applicable due to insufficient data.
Growth and Profitability of the Traded Company
Due to insufficient data, the growth and profitability of VCIF cannot be evaluated. The company's gross margin growth, operating margin growth, revenue growth, EBITDA growth, and earning growth over the past three years are all not applicable.
Momentum and Predictability of the Traded Stock
VCIF's RSI over 5, 9, and 14 days are 4.93, 6.50, and 9.72 respectively. The stock's momentum index over 6 and 12 months are 6.74 and 5.16 respectively. The stock ranks 54th in terms of RSI and 264th in terms of the momentum index.
Transaction Analysis
The acquisition of VCIF shares by Carlyle Group Inc. (Trades, Portfolio) signifies a strategic move to diversify their portfolio. Despite the stock's poor performance since its IPO and its low GF score, Carlyle's investment could potentially stimulate growth and improve the stock's market performance. However, investors should exercise caution due to the lack of sufficient data to evaluate VCIF's growth, profitability, and GF valuation.
All data and rankings are accurate as of July 17, 2023.
