DME Capital Sold Victoria’s Secret Shares Worth $7.7 Million. Is the Stock a Buy or Sell?
Key Points
DME Capital sold 194,593 shares of Victoria's Secret & Co.; estimated trade value was $7.73 million based on quarterly average price.
The quarter-end value of the fund's Victoria's Secret & Co. stake increased by $41.69 million, reflecting both trading and price movement effects.
The transaction represented a 0.27% change relative to DME Capital's $2.85 billion in reportable assets under management (AUM).
After the trade, the fund held 1,737,869 shares valued at $94.14 million.
The position now accounts for 3.3% of AUM, placing it outside the fund's top five holdings.
- 10 stocks we like better than Victoria's Secret & Co. ›
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, DME Capital Management, LP reduced its position in Victoria's Secret & Co. (NYSE:VSCO) by 194,593 shares during the quarter ending December 31, 2025.
The estimated transaction value was $7.73 million, calculated using the average closing price over the quarter. The quarter-end value of the fund's Victoria's Secret & Co. stake increased by $41.69 million, reflecting both trading activity and price performance.
What else to know
Following the sale, Victoria's Secret & Co. represented 3.3% of DME Capital's $2.85 billion in reportable assets, which places it outside the fund's top five holdings.
Top five holdings after the filing:
- NYSE: GRBK: $593.23 million (20.8% of AUM)
- NYSE: FLR: $220.18 million (7.7% of AUM)
- NYSE: CNR: $185.91 million (6.5% of AUM)
- NASDAQ: BHF: $180.90 million (6.3% of AUM)
- NYSE: GPK: $126.73 million (4.4% of AUM)
As of February 17, 2026, shares of Victoria's Secret & Co. were priced at $60.36, up 93.2% over the past year, outperforming the S&P 500 by 71.94 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $6.39 billion |
| Net income (TTM) | $170.00 million |
| Price (as of market close February 17, 2026) | $60.36 |
| 1-year price change | 93.2% |
Company snapshot
- Victoria's Secret & Co. offers women's intimate apparel, sleepwear, loungewear, athletic attire, swimwear, fragrances, and body care products under the Victoria's Secret and PINK brands.
- The company generates revenue primarily through direct retail sales across approximately 1,400 stores and a global e-commerce platform, focusing on branded specialty retailing.
- Its primary customers are women seeking premium intimate and lifestyle products, with a strong focus on the North American and international consumer markets.
Victoria's Secret & Co. is a leading specialty retailer in the women's apparel and personal care market, operating at significant scale with a global store footprint and a robust direct-to-consumer e-commerce presence. The company leverages strong brand equity and targeted product innovation to maintain competitive differentiation. Strategic emphasis on customer experience and brand loyalty supports its position in the highly competitive apparel and beauty segments.
What this transaction means for investors
DME Capital Management’s sale of Victoria's Secret shares in the fourth quarter suggests the fund wanted to take some of its profits from the rise in stock price. Victoria's Secret was on an upswing in Q4 and into the early part of 2026, hitting a 52-week high of $66.89 on Jan. 9.
After the transaction, DME Capital still owned 1.7 million shares in Victoria's Secret. Holding onto the stock makes sense given how well the company has been doing.
In its fiscal third quarter ended Nov. 1, Victoria's Secret sales hit $1.5 billion, a 9% year-over-year increase that exceeded expectations. The company also raised its full year guidance to $6.5 billion, and that helped boost its share price.
Because the stock is up, its price-to-earnings ratio exceeds 30, which is the highest it’s been over the past year. This makes now a good time to sell if you’re a shareholder. But if you’re thinking to buy the stock, wait for the share price to drop first.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Green Brick Partners and Victoria's Secret & Co. The Motley Fool has a disclosure policy.
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