Virtu Financial (NASDAQ:VIRT) Reaches New 52-Week High - What's Next?

On Thursday, Virtu Financial, Inc. (NASDAQ:VIRT - Get Free Report) achieved a remarkable milestone by hitting a new 52-week high during mid-day trading. The stock surged to a peak of $38.67 and was last observed at $38.62, with 499,708 shares exchanging hands. This increase reflects a notable rise from its previous close at $37.41.

Recent Changes in Analyst Ratings

Virtu has captured the attention of several equity research analysts recently. Goldman Sachs upgraded their price target for Virtu Financial from $26.00 to $29.00, deeming the stock as "neutral" in their analysis dated September 30. Meanwhile, Citigroup raised their target from $32.00 to $37.00, issuing a "buy" rating in a report published on October 9. Conversely, Bank of America reduced their price target from $37.00 to $35.00 but maintained a "buy" rating on October 3. On October 17, Morgan Stanley adjusted their target price from $23.00 to $25.00, assigning an "equal weight" rating. Lastly, Piper Sandler increased their price target from $35.00 to $40.00 and gave an "overweight" rating in their analysis on January 7. Current data from MarketBeat.com shows that five analysts have given the stock a hold rating, while three have suggested a buy rating, resulting in an average rating of "Hold" and a consensus target price of $30.21.

Performance of Virtu Financial Stock

Virtu Financial enjoyed a stock price increase of 3.2%. The company boasts a market capitalization of $5.97 billion, a P/E ratio of 19.40, a PEG ratio of 0.48, and a beta of 0.45. Additionally, the stock's 50-day moving average stands at $36.39, while its 200-day moving average is set at $32.32. The company displays a debt-to-equity ratio of 1.23 along with a quick ratio and current ratio both at 0.47.

The latest quarterly earnings report from Virtu Financial was released on October 24, where the company reported earnings of $0.82 per share, surpassing the consensus estimate of $0.79 by $0.03. The company's quarterly revenue reached $388.00 million, outperforming analyst expectations of $379.18 million. Virtu reported a net margin of 7.29% and a return on equity of 23.22%, with revenue growth of 30.2% compared to the same quarter the previous year. In the prior year's quarter, the business recorded earnings of $0.40 per share. Analysts forecast that Virtu Financial, Inc. is likely to post earnings of 2.9 per share for the current fiscal year.

Dividend Declaration by Virtu Financial

Furthermore, Virtu Financial recently announced a quarterly dividend of $0.24, which was paid on December 15. Investors who were on record as of December 1 received this dividend, and the ex-dividend date was November 29. This dividend yields an annualized amount of $0.96, translating to a yield of 2.49%. Currently, Virtu Financial's dividend payout ratio stands at 48.24%.

Institutional Investor Activity

Many institutional investors and hedge funds have been active in changing their stakes in Virtu Financial recently. For instance, Mercer Global Advisors Inc. ADV raised its position by 3.1% in the second quarter, acquiring an additional 587 shares to hold a total of 19,421 shares valued at approximately $436,000. Meanwhile, Amalgamated Bank increased its shareholding by 125.4% during the same quarter, owning 38,554 shares after purchasing an additional 21,450 shares, valued at about $866,000. XTX Topco Ltd initiated a new position, valued at nearly $381,000, while Sei Investments Co. elevated its stake by 53.7%, owning 192,012 shares worth approximately $4,311,000, after acquiring another 67,080 shares. Thrivent Financial for Lutherans also increased their investment by 90.9%, now owning 319,101 shares valued at $7,164,000. Collectively, institutional investors control 45.78% of the shares.

Overview of Virtu Financial

Virtu Financial, Inc. is a prominent financial services company operating across the United States, Asia Pacific, Canada, EMEA, and Ireland. The firm engages in two primary segments: Market Making and Execution Services. Their diverse array of products includes execution services, liquidity sourcing, analytics, and multiple platforms in broker-neutral capital markets and workflow technology.

Final Thoughts on Investing in Virtu Financial

Before considering an investment in Virtu Financial, it’s essential to be informed. Analysts have recently tracked numerous top-performing stocks that they recommend to their clients, and Virtu Financial is not currently included on that list. While the stock maintains a "Hold" rating among experts, there are suggestions that other stocks may present stronger investment opportunities. Potential investors should carefully evaluate this information before making decisions.

Virtu, Stock, Investment