Virtu Financial (NASDAQ:VIRT) Issues Earnings Results, Beats Expectations By $0.64 EPS

Key Points

• Virtu Financial reported an earnings per share (EPS) of $1.65 for the quarter, surpassing analysts' estimates of $1.01 by $0.64.
• The company announced a quarterly dividend of $0.24, with an annualized dividend yield of 2.14%.
• Several analysts have raised their price targets for Virtu Financial, with Piper Sandler increasing theirs to $48.00 and Morgan Stanley adjusting theirs to $35.00.

Virtu Financial (NASDAQ:VIRT - Get Free Report) released its quarterly earnings data on Wednesday. The financial services provider reported $1.65 EPS for the quarter, topping the consensus estimate of $1.01 by $0.64, Briefing.com reports. Virtu Financial had a net margin of 10.43% and a return on equity of 32.08%. The company had revenue of $999.57 million during the quarter, compared to the consensus estimate of $481.90 million. During the same period last year, the firm earned $0.83 EPS.

Virtu Financial Price Performance

NASDAQ VIRT traded down $0.60 during trading hours on Friday, reaching $43.55. 301,470 shares of the stock traded hands, compared to its average volume of 953,485. The company has a debt-to-equity ratio of 1.11, a current ratio of 0.49 and a quick ratio of 0.49. The stock has a 50 day simple moving average of $42.77 and a two-hundred day simple moving average of $39.71. Virtu Financial has a 1 year low of $26.50 and a 1 year high of $45.77. The company has a market cap of $6.71 billion, a price-to-earnings ratio of 12.60, a price-to-earnings-growth ratio of 1.14 and a beta of 0.70.

Virtu Financial Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Monday, September 1st will be given a dividend of $0.24 per share. The ex-dividend date is Friday, August 29th. This represents a $0.96 dividend on an annualized basis and a yield of 2.2%. Virtu Financial's dividend payout ratio (DPR) is presently 21.82%.

Insider Activity

In related news, Director John Nixon sold 6,965 shares of the firm's stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $42.82, for a total transaction of $298,241.30. Following the transaction, the director directly owned 33,923 shares of the company's stock, valued at approximately $1,452,582.86. This trade represents a 17.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 47.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Jones Financial Companies Lllp lifted its holdings in shares of Virtu Financial by 1,624.1% in the 1st quarter. Jones Financial Companies Lllp now owns 1,000 shares of the financial services provider's stock worth $38,000 after acquiring an additional 942 shares during the last quarter. United Services Automobile Association purchased a new position in Virtu Financial in the 1st quarter worth $222,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Virtu Financial by 13.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 226,233 shares of the financial services provider's stock worth $8,624,000 after purchasing an additional 26,743 shares during the period. Finally, Empowered Funds LLC bought a new stake in Virtu Financial in the first quarter worth $1,934,000. 45.78% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

VIRT has been the topic of a number of analyst reports. Wall Street Zen lowered Virtu Financial from a "buy" rating to a "hold" rating in a research note on Saturday, May 24th. UBS Group reaffirmed a "neutral" rating and set a $40.00 price objective (up previously from $38.00) on shares of Virtu Financial in a research note on Thursday, April 24th. Bank of America downgraded shares of Virtu Financial from a "buy" rating to a "neutral" rating and set a $43.00 price target for the company. in a report on Thursday, May 15th. Piper Sandler boosted their price target on shares of Virtu Financial from $44.00 to $48.00 and gave the company an "overweight" rating in a research report on Tuesday, July 15th. Finally, Morgan Stanley increased their price objective on Virtu Financial from $31.00 to $35.00 and gave the stock an "underweight" rating in a research report on Tuesday, July 15th. One analyst has rated the stock with a sell rating, six have given a hold rating and two have issued a buy rating to the company's stock. According to MarketBeat.com, Virtu Financial currently has a consensus rating of "Hold" and an average target price of $39.13.

About Virtu Financial

Virtu Financial, Inc operates as a financial services company in the United States, Asia Pacific, Canada, EMEA, Ireland, and internationally. The company operates through two segments, Market Making and Execution Services. Its product includes offerings in execution, liquidity sourcing, analytics and broker-neutral, capital markets, and multi-dealer platforms in workflow technology.