Virtu Financial (NYSE:VIRT) Hits New 12-Month High - Time to Buy?

Key Points

• Virtu Financial hit a new 52-week high, trading as high as $52.26 after its recent rally. The move came alongside a strong year-to-date performance and trading above both its 50-day and 200-day moving averages.
• Recent earnings topped expectations, with Q1 EPS of $2.24 versus $1.66 expected and revenue of $786.53 million, up 30.7% year over year. Analysts now expect full-year EPS of 5.48, and the stock carries a consensus rating of Moderate Buy with an average price target of $48.67.
• The company is also returning cash to shareholders, announcing a quarterly dividend of $0.24 per share, or $0.96 annually, for a 1.8% yield. Insider selling has been notable in recent months, including major sales by the EVP and COO.

Virtu Financial, Inc. (NYSE:VIRT - Get Free Report) shares hit a new 52-week high on Wednesday . The stock traded as high as $52.26 and last traded at $52.3470, with a volume of 215794 shares traded. The stock had previously closed at $51.85.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on VIRT shares. The Goldman Sachs Group lifted their price objective on shares of Virtu Financial from $46.00 to $51.00 and gave the company a "neutral" rating in a report on Thursday, April 30th. Zacks Research upgraded Virtu Financial from a "hold" rating to a "strong-buy" rating in a report on Wednesday, April 8th. Piper Sandler lifted their price target on Virtu Financial from $57.00 to $61.00 and gave the company an "overweight" rating in a report on Friday, March 20th. Wall Street Zen raised Virtu Financial from a "hold" rating to a "buy" rating in a research report on Saturday, April 11th. Finally, JPMorgan Chase & Co. upped their price objective on Virtu Financial from $44.00 to $51.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $48.67.

Virtu Financial Stock Performance

The firm's 50 day moving average is $45.79 and its 200 day moving average is $39.35. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.48 and a current ratio of 0.48. The stock has a market cap of $8.33 billion, a P/E ratio of 8.89, a price-to-earnings-growth ratio of 1.32 and a beta of 0.62.

Virtu Financial (NYSE:VIRT - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $2.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.66 by $0.58. Virtu Financial had a net margin of 14.17% and a return on equity of 51.63%. The business had revenue of $786.53 million for the quarter, compared to analyst estimates of $613.12 million. During the same period in the previous year, the company earned $1.30 earnings per share. The business's revenue for the quarter was up 30.7% on a year-over-year basis. Analysts anticipate that Virtu Financial, Inc. will post 5.48 EPS for the current year.

Virtu Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be given a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Monday, June 1st. Virtu Financial's dividend payout ratio is currently 15.89%.

Insider Buying and Selling at Virtu Financial

In other Virtu Financial news, EVP Stephen Cavoli sold 28,370 shares of the stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $38.94, for a total value of $1,104,727.80. Following the completion of the sale, the executive vice president directly owned 116,191 shares in the company, valued at approximately $4,524,477.54. This trade represents a 19.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Joseph Molluso sold 200,000 shares of the business's stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $38.88, for a total value of $7,776,000.00. Following the sale, the chief operating officer owned 326,585 shares in the company, valued at $12,697,624.80. The trade was a 37.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 288,370 shares of company stock worth $11,510,828. 46.76% of the stock is owned by insiders.

Hedge Funds Weigh In On Virtu Financial

Hedge funds have recently made changes to their positions in the company. Rothschild Investment LLC grew its stake in Virtu Financial by 3,460.0% during the 3rd quarter. Rothschild Investment LLC now owns 712 shares of the company's stock valued at $25,000 after purchasing an additional 692 shares during the last quarter. Assetmark Inc. lifted its holdings in shares of Virtu Financial by 258.3% during the third quarter. Assetmark Inc. now owns 713 shares of the company's stock worth $25,000 after purchasing an additional 514 shares during the period. Transamerica Financial Advisors LLC boosted its position in Virtu Financial by 480.6% in the fourth quarter. Transamerica Financial Advisors LLC now owns 836 shares of the company's stock valued at $28,000 after buying an additional 692 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in Virtu Financial by 103.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company's stock worth $34,000 after buying an additional 387 shares during the period. Finally, Neo Ivy Capital Management raised its position in Virtu Financial by 93.7% during the 3rd quarter. Neo Ivy Capital Management now owns 978 shares of the company's stock worth $35,000 after buying an additional 473 shares during the last quarter. 45.78% of the stock is owned by institutional investors and hedge funds.

About Virtu Financial

Virtu Financial, Inc is a technology-driven electronic trading firm and market maker that provides liquidity and price discovery across a wide range of financial instruments. Leveraging advanced analytics, high-performance computing and proprietary algorithms, Virtu operates in equities, fixed income, foreign exchange, commodities and derivative products. Its technology platform is designed to capture bid-ask spreads in real time, manage risk through automated controls and adapt to changing market conditions.

The company offers a suite of execution services and market-making solutions to institutional clients such as asset managers, banks, broker-dealers and hedge funds.

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