Vicor's $150M Buyback Follows $31.6M Insider Selloff
Vicor Corporation authorized a $150 million share repurchase on August 27, 2026, drawing on its $450 million cash balance at a time when CEO Patrizio Vinciarelli and other insiders recorded $31.59 mil
Vicor's $150M Buyback Follows $31.6M Insider Selloff
NEW YORK, August 31 —
Vicor Corporation (VICR) authorized a $150 million share repurchase plan on August 27, 2026, signaling the board views current prices near $188 as undervalued. The complication: CEO Patrizio Vinciarelli was selling shares at prices reaching $382 as recently as June 30, and insiders collectively recorded $31.59 million in open-market sales over the prior 90 days without a single recorded purchase.
- Analyst consensus price target: $386.25; shares trade at $187.68, about half Vinciarelli's late-June selling prices.
- Total insider open-market sales in the prior 90 days: $31.59 million. Insider purchases over the same period: zero.
- Vicor holds $450 million cash, nearly debt-free; free cash flow is approximately zero as capex absorbs all operating cash generation.
The CEO's Exit Tracked the Stock Down
Chairman and CEO Patrizio Vinciarelli sold across six trading days in late June and early July 2026. On June 30, his sales reached $382.27 per share; by July 6, he was exiting at $302 to $303, a 21% compression that tracked the stock's own slide. Corp. VP of Global Sales Philip D. Davies followed a parallel path: $348 to $366 on July 1, then back in August at $200 to $216. CFO James F. Schmidt sold in late June at $327 to $342. Across the 90-day window, every insider who traded did so by selling, with no purchase recorded.
A Business Reinvesting Every Dollar It Earns
Vicor makes brick-format DC-DC converters and modular power systems for aerospace, defense, telecommunications, and factory automation markets, equipment that goes into satellites, military electronics, and industrial machinery. Revenue grew 49.3% over the trailing twelve months to $470 million, and Vicor has beaten the analyst EPS consensus in four straight quarters, with the most recent delivering actual EPS of $1.13 against a $0.66 estimate, a 71.6% positive surprise. Operating cash flow runs $84 million, but free cash flow is approximately zero as capital expenditure absorbs nearly all of it, meaning the $150 million buyback draws on the $450 million cash balance, not current earnings.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| VICR | $8.7B | 33.8x | +272.0% |
| TTMI | $12.5B | 17.3x | +163.9% |
| MXL | $5.4B | 23.2x | +295.2% |
| POWI | $2.9B | 27.4x | +15.6% |
| FN | $14.8B | 19.0x | +23.4% |
| POWL | $6.5B | 25.3x | +107.8% |
The Numbers That Would Confirm the Board Was Right
Analyst consensus sits at $386.25, roughly double today's price. Vicor's forward P/E of 33.8x against trailing EPS of $3.12 implies the market prices in a real earnings step-up; four straight beats support that expectation. The specific checkpoint: whether free cash flow turns positive as capital expenditure peaks, and whether EPS holds above $1.00. Short interest at 7.0% of the float embeds some skepticism already. A DCF model of Vicor's power components business would need to assume sustained earnings growth to close that gap; how the next quarter lands will test whether the board's $150 million signal was prescient or premature. Run the free Vicor Corporation deep-dive →
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
Why did Vicor authorize a $150 million share buyback?
Vicor's board authorized the $150 million repurchase plan on August 27, 2026, signaling its view that current prices near $188 are undervalued. The buyback draws on the company's $450 million cash balance rather than current earnings, because free cash flow is approximately zero as capital expenditure absorbs nearly all operating cash.
Did Vicor insiders buy or sell shares recently?
In the 90 days prior to the buyback authorization, Vicor insiders recorded $31.59 million in open-market sales with zero purchases. CEO Patrizio Vinciarelli sold across six trading days in late June and early July at prices ranging from $302 to $382, and CFO James F. Schmidt sold in late June at $327 to $342.
What is the analyst price target for Vicor?
The analyst consensus price target is $386.25, roughly double the current trading price of $187.68. Vicor has beaten the analyst EPS consensus in four consecutive quarters, with its most recent quarter delivering actual EPS of $1.13 against a $0.66 estimate, a 71.6% positive surprise.
What does Vicor Corporation make?
Vicor makes brick-format DC-DC converters and modular power systems for aerospace, defense, telecommunications, and factory automation markets. Its equipment goes into satellites, military electronics, and industrial machinery, and revenue grew 49.3% over the trailing twelve months to $470 million.
What is Vicor's short interest?
Short interest in Vicor stands at 7.0% of the float, a sign some investors doubt the stock can close the gap to analyst targets.
Vicor Corporation announced a $150 million share repurchase plan on August 27, 2026 — a board signal that the stock is attractively priced near $188. Two months earlier, CEO Patrizio Vinciarelli was selling shares at prices as high as $382, and the company's insiders collectively sold $31.59 million in the past 90 days without a single recorded purchase.