Virtu Financial (NYSE:VIRT) Reaches New 1-Year High - Here's Why

Key Points

• New 52-week high: Virtu hit a fresh one-year high at $48.30 (last $47.62) and trades with a market cap of $7.36 billion and a low PE of about 9.3.
• Large earnings beat: The company reported quarterly EPS of $1.85 versus $1.12 expected and revenue of $969.9M vs. $513.5M expected, with ROE of 48.35% and revenue up 16.3% year-over-year.
• Mixed sentiment and notable insider activity: Analysts hold a consensus "Hold" with a $44 target despite some price-target upgrades (Piper Sandler to $61), while insiders sold 270,000 shares (~$10.46M) recently even though insiders still own 46.7%; the company also pays a $0.96 annual dividend (2.0% yield).

Virtu Financial, Inc. (NYSE:VIRT - Get Free Report) reached a new 52-week high during trading on Wednesday . The company traded as high as $48.30 and last traded at $47.6190, with a volume of 1117651 shares. The stock had previously closed at $47.49.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Piper Sandler boosted their price target on Virtu Financial from $57.00 to $61.00 and gave the stock an "overweight" rating in a report on Friday, March 20th. Morgan Stanley boosted their price target on Virtu Financial from $35.00 to $36.00 and gave the stock an "underweight" rating in a report on Thursday, January 22nd. Zacks Research cut Virtu Financial from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 3rd. The Goldman Sachs Group boosted their price target on Virtu Financial from $36.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, January 30th. Finally, Weiss Ratings raised Virtu Financial from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 2nd. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $44.00.

Virtu Financial Stock Up 0.3%

The firm has a market capitalization of $7.36 billion, a PE ratio of 9.28, a PEG ratio of 1.57 and a beta of 0.54. The company has a fifty day moving average price of $40.98 and a 200-day moving average price of $36.77. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.47 and a current ratio of 0.47.

Virtu Financial (NYSE:VIRT - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The company reported $1.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.73. The business had revenue of $969.89 million for the quarter, compared to analysts' expectations of $513.51 million. Virtu Financial had a return on equity of 48.35% and a net margin of 12.90%.The company's revenue for the quarter was up 16.3% on a year-over-year basis. During the same period in the prior year, the firm earned $1.14 EPS.

Virtu Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Friday, February 27th were issued a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Friday, February 27th. Virtu Financial's dividend payout ratio is 18.71%.

Insider Activity at Virtu Financial

In other news, EVP Stephen Cavoli sold 28,370 shares of the company's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $38.94, for a total transaction of $1,104,727.80. Following the sale, the executive vice president directly owned 116,191 shares of the company's stock, valued at $4,524,477.54. This represents a 19.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Joseph Molluso sold 200,000 shares of the company's stock in a transaction that occurred on 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 directly owned 326,585 shares in the company, valued at $12,697,624.80. This trade represents a 37.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 270,000 shares of company stock worth $10,458,644 over the last ninety days. Insiders own 46.70% of the company's stock.

Institutional Trading of Virtu Financial

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Summit Global Investments purchased a new stake in Virtu Financial during the 3rd quarter valued at $1,109,000. Pullen Investment Management LLC raised its holdings in Virtu Financial by 842.9% during the 3rd quarter. Pullen Investment Management LLC now owns 61,154 shares of the company's stock valued at $2,171,000 after buying an additional 54,668 shares during the period. Allspring Global Investments Holdings LLC raised its holdings in Virtu Financial by 23.2% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,183,268 shares of the company's stock valued at $40,373,000 after buying an additional 222,862 shares during the period. Y Intercept Hong Kong Ltd raised its holdings in Virtu Financial by 59.8% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 90,206 shares of the company's stock valued at $3,202,000 after buying an additional 33,762 shares during the period. Finally, Cornerstone Planning Group LLC raised its holdings in Virtu Financial by 114,887.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 26,447 shares of the company's stock valued at $939,000 after buying an additional 26,424 shares during the period. Hedge funds and other institutional investors own 45.78% of the company's stock.

Virtu Financial Company Profile

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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