Virtus Investment Partners (NASDAQ:VRTS) Reaches New 1-Year Low Following Analyst Downgrade

Key Points

• Virtus Investment Partners shares fell to a new 52-week low of $117.44 after Piper Sandler cut its price target from $172 to $146, despite maintaining an overweight rating.
• Analyst sentiment is largely negative: the stock has an average “Reduce” rating and a consensus target price of $129.75, with Morgan Stanley, Barclays and Zacks Research issuing bearish assessments.
• Virtus increased its quarterly dividend to $2.45 per share, equating to an annualized payout of $9.80 and an approximately 8.3% yield; meanwhile, company insiders recently reported stock sales.

Virtus Investment Partners, Inc. (NASDAQ:VRTS - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday after Piper Sandler lowered their price target on the stock from $172.00 to $146.00. Piper Sandler currently has an overweight rating on the stock. Virtus Investment Partners traded as low as $117.44 and last traded at $118.0490, with a volume of 152,381 shares changing hands. The stock had previously closed at $122.93.

A number of other brokerages also recently issued reports on VRTS. Morgan Stanley cut their price target on Virtus Investment Partners from $130.00 to $120.00 and set an "underweight" rating on the stock in a report on Friday, September 25th. TD Cowen decreased their price objective on Virtus Investment Partners from $155.00 to $136.00 and set a "hold" rating for the company in a research note on Monday, October 12th. Zacks Research cut Virtus Investment Partners from a "hold" rating to a "strong sell" rating in a research note on Wednesday, October 14th. Finally, Barclays dropped their price objective on Virtus Investment Partners from $135.00 to $117.00 and set an "underweight" rating on the stock in a research report on Wednesday, October 14th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $129.75.

Insider Buying and Selling

In other news, EVP Michael A. Angerthal sold 14,975 shares of Virtus Investment Partners stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $167.34, for a total transaction of $2,505,916.50. Following the completion of the sale, the executive vice president directly owned 63,461 shares in the company, valued at approximately $10,619,563.74. The trade was a 19.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director W. Morris sold 435 shares of Virtus Investment Partners stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $138.59, for a total transaction of $60,286.65. The SEC filing for this sale provides additional information. Corporate insiders own 6.40% of the company's stock.

Hedge Funds Weigh In On Virtus Investment Partners

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Illinois Municipal Retirement Fund grew its holdings in shares of Virtus Investment Partners by 2.3% during the first quarter. Illinois Municipal Retirement Fund now owns 3,446 shares of the closed-end fund's stock worth $463,000 after buying an additional 77 shares in the last quarter. IFP Advisors Inc raised its position in shares of Virtus Investment Partners by 158.6% in the second quarter. IFP Advisors Inc now owns 181 shares of the closed-end fund's stock valued at $26,000 after buying an additional 111 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of Virtus Investment Partners by 86.2% during the second quarter. GAMMA Investing LLC now owns 270 shares of the closed-end fund's stock valued at $39,000 after buying an additional 125 shares during the period. International Assets Investment Management LLC purchased a new position in shares of Virtus Investment Partners during the first quarter valued at approximately $26,000. Finally, Caitlin John LLC purchased a new position in shares of Virtus Investment Partners during the second quarter valued at approximately $35,000. Hedge funds and other institutional investors own 80.52% of the company's stock.

Virtus Investment Partners Stock Performance

The stock's 50-day moving average is $145.96 and its 200-day moving average is $147.05. The stock has a market cap of $781.84 million, a price-to-earnings ratio of 6.99 and a beta of 1.41. The company has a debt-to-equity ratio of 0.27, a current ratio of 11.86 and a quick ratio of 11.86.

Virtus Investment Partners Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be paid a dividend of $2.45 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $9.80 annualized dividend and a dividend yield of 8.3%. This is a boost from Virtus Investment Partners's previous quarterly dividend of $2.40. Virtus Investment Partners's dividend payout ratio is presently 55.84%.

About Virtus Investment Partners

Virtus Investment Partners, Inc is a U.S.-based asset management company that operates as a multi-manager investment platform. Through a collection of affiliated investment managers, the company provides investment strategies designed to address a range of investor objectives and risk profiles.

Virtus offers mutual funds, exchange-traded funds, separately managed accounts, institutional mandates and alternative investment solutions. Its affiliated managers provide expertise across domestic and international equities, fixed income, multi-asset strategies, alternatives and other specialized investment approaches.

The company traces its roots to 1995 and was previously associated with Phoenix Investment Partners before adopting the Virtus Investment Partners name.

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