Virtu Financial (NYSE:VIRT) Issues Earnings Results

Virtu Financial (NYSE:VIRT) released its earnings results on Thursday. The company reported $1.77 earnings per share for the quarter, topping the consensus estimate of $1.52 by $0.25, FiscalAI reports. Virtu Financial had a return on equity of 49.06% and a net margin of 13.50%. The firm had revenue of $956.39 million during the quarter, compared to analysts’ expectations of $647.02 million. During the same period in the prior year, the company earned $1.05 earnings per share. The company’s quarterly revenue was up 147.1% on a year-over-year basis.

Here are the key takeaways from Virtu Financial’s conference call:

• Virtu reported third-quarter Adjusted Net Trading Income of $704 million, Adjusted EPS of $1.77 and a 62% Adjusted EBITDA margin. Trailing-12-month ANTI, Adjusted EBITDA and Adjusted EPS were all company records.
• Market Making held up better than the sequential decline in U.S. equity volumes and volatility, which management attributed in part to activity across international markets, crypto and other products. Executives said diversification should make results less correlated with U.S. equity metrics over time.
• Virtu’s trading capital reached $3.4 billion after a $500 million debt issuance, with trailing debt-to-EBITDA of 1.4x; the company maintained its quarterly dividend at $0.24 per share. Management said it could deploy the new capital while retaining internal buffers, though slower activity can reduce capital usage.
• Management described Virtu Execution Services as a strategic, global business serving 1,400 clients and declined to comment on reports of a potential sale. It said the company does not need an asset sale to pursue its medium-term capital goals.
• Market volumes and volatility moderated from the first half, even though they remained above historical averages. Virtu also expects continued hiring and technology investment, with expenses having risen in line with expectations.

Virtu Financial Stock Performance

Shares of NYSE VIRT traded up $0.10 during mid-day trading on Friday, hitting $54.05. The company had a trading volume of 1,030,222 shares, compared to its average volume of 1,040,930. The company has a current ratio of 0.45, a quick ratio of 0.45 and a debt-to-equity ratio of 0.87. The company has a market capitalization of $8.39 billion, a price-to-earnings ratio of 7.94, a P/E/G ratio of 0.39 and a beta of 0.67. Virtu Financial has a 1 year low of $31.55 and a 1 year high of $68.76. The stock’s 50-day moving average price is $57.63 and its 200-day moving average price is $52.43.

Virtu Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend is Tuesday, December 1st. Virtu Financial’s dividend payout ratio (DPR) is presently 15.95%.

More Virtu Financial News

Here are the key news stories impacting Virtu Financial this week:

• Positive Sentiment: Q3 earnings were $1.77 per share, ahead of the $1.52 analyst consensus, while revenue of $956.4 million substantially exceeded estimates of about $647 million and rose 147.1% year over year. The earnings beat and sharp revenue growth may support investor optimism. Virtu Financial Surpasses Q3 Earnings and Revenue Estimates
• Neutral Sentiment: Virtu maintained its quarterly dividend at $0.24 per share, equivalent to $0.96 annually and a stated yield of 1.8%. It also outlined a near-term trading-capital goal of around $4 billion or more; the available report does not detail the expected financial impact of that target. Virtu outlines trading capital goal and dividend

Wall Street Analyst Weigh In

Several research firms have recently issued reports on VIRT. Piper Sandler reaffirmed an “overweight” rating on shares of Virtu Financial in a research note on Friday, October 2nd. Weiss Ratings restated a “buy (b-)” rating on shares of Virtu Financial in a report on Wednesday, August 26th. Morgan Stanley lowered their target price on shares of Virtu Financial from $57.00 to $56.00 and set an “underweight” rating for the company in a report on Friday, October 9th. Wall Street Zen lowered shares of Virtu Financial from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Evercore upgraded Virtu Financial to an “outperform” rating in a research note on Monday, October 5th. Four equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $68.25.

Insider Activity at Virtu Financial

In other Virtu Financial news, Director Joseph J. Grano, Jr. sold 8,400 shares of the firm’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $60.94, for a total value of $511,896.00. Following the sale, the director owned 33,814 shares of the company’s stock, valued at $2,060,625.16. This trade represents a 19.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director John Nixon sold 9,094 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $60.13, for a total value of $546,822.22. Following the completion of the transaction, the director directly owned 30,902 shares in the company, valued at approximately $1,858,137.26. This represents a 22.74% decrease in their position. The SEC filing for this sale provides additional information. 46.76% of the stock is currently owned by insiders.

About Virtu Financial

Virtu Financial, Inc is a global financial services company that provides liquidity, trading, and technology solutions to the financial markets. Through its market-making business, Virtu facilitates trading in a broad range of products, including equities, exchange-traded funds, options, fixed income, foreign exchange, commodities, and certain digital assets.

The company also operates an execution services business that provides trading and workflow technology to institutional investors, asset managers, broker-dealers, and other financial institutions.