Virtus Investment Partners (NASDAQ:VRTS) Reaches New 52-Week Low - Time to Sell?

Key Points

• Virtus Investment Partners fell to a new 52-week low of $121.15, well below its 50-day and 200-day moving averages. Analysts have lowered price targets, with the stock carrying a consensus “Reduce” rating and an average target of $135.75.
• The company increased its quarterly dividend to $2.45 per share, or $9.80 annually, implying an approximately 8.1% yield and a 55.84% payout ratio.
• Recent insider activity has been negative, including substantial share sales by an executive and a director, while institutional investors own approximately 80.52% of the stock.

Virtus Investment Partners, Inc. (NASDAQ:VRTS - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $121.15 and last traded at $122.0770, with a volume of 95,724 shares trading hands. The stock had previously closed at $127.97.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on VRTS. Morgan Stanley reduced their price objective on Virtus Investment Partners from $130.00 to $120.00 and set an "underweight" rating on the stock in a research note on Friday, September 25th. TD Cowen lowered their target price on Virtus Investment Partners from $155.00 to $136.00 and set a "hold" rating for the company in a research note on Monday. Finally, Barclays lowered their target price on Virtus Investment Partners from $135.00 to $117.00 and set an "underweight" rating for the company in a research note on Wednesday. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $135.75.

Virtus Investment Partners Price Performance

The company has a quick ratio of 11.86, a current ratio of 11.86 and a debt-to-equity ratio of 0.27. The stock has a market cap of $802.18 million, a P/E ratio of 7.13 and a beta of 1.41. The firm's fifty day moving average price is $149.39 and its 200-day moving average price is $147.33.

Virtus Investment Partners Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be given a dividend of $2.45 per share. This represents a $9.80 annualized dividend and a yield of 8.1%. The ex-dividend date of this dividend is Friday, October 30th. This is an increase from Virtus Investment Partners's previous quarterly dividend of $2.40. Virtus Investment Partners's dividend payout ratio is currently 55.84%.

Insider Buying and Selling at Virtus Investment Partners

In other Virtus Investment Partners news, Director W. Morris sold 435 shares of the business's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $138.59, for a total value of $60,286.65. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Michael A. Angerthal sold 14,975 shares of the company's stock in a transaction dated 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 transaction, the executive vice president directly owned 63,461 shares of the company's stock, valued at approximately $10,619,563.74. This trade represents a 19.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 6.40% of the company's stock.

Institutional Trading of Virtus Investment Partners

Institutional investors have recently modified their holdings of the company. International Assets Investment Management LLC purchased a new stake in shares of Virtus Investment Partners in the 1st quarter worth about $26,000. IFP Advisors Inc increased its position in shares of Virtus Investment Partners by 158.6% during 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 period. Caitlin John LLC purchased a new position in shares of Virtus Investment Partners during the second quarter valued at about $35,000. Assetmark Inc. purchased a new position in shares of Virtus Investment Partners during the first quarter valued at about $36,000. Finally, GAMMA Investing LLC raised its stake in Virtus Investment Partners by 86.2% in the second quarter. GAMMA Investing LLC now owns 270 shares of the closed-end fund's stock worth $39,000 after buying an additional 125 shares in the last quarter. 80.52% of the stock is currently owned by hedge funds and other institutional investors.

Virtus Investment Partners Company Profile

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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