1834 Investment Advisors Co. Reduces Its Stake in Virtu Financial, Inc.

1834 Investment Advisors Co. has recently lowered its investment in Virtu Financial, Inc. (NASDAQ:VIRT) by 11.7% during the fourth quarter. This information comes from the company's latest Form 13F filing with the Securities and Exchange Commission. Following the sale of 38,066 shares, the firm now owns a total of 286,847 shares of the financial services provider. Virtu Financial constitutes approximately 1.3% of 1834 Investment Advisors Co.'s portfolio, making it the 15th largest holding in the firm's repertoire. As of the end of the recent quarter, 1834 Investment Advisors Co. held about 0.19% of Virtu Financial, valued at $10,235,000.

In addition to 1834 Investment Advisors Co., several other large investors have made adjustments to their positions in Virtu Financial recently. Exchange Traded Concepts LLC has increased its stake in the company by 7.3% in the fourth quarter, now owning 176,438 shares valued at $6,295,000 after acquiring an additional 12,061 shares during the last quarter. Meanwhile, Albion Financial Group UT recently invested in Virtu Financial by purchasing a new stake worth about $45,000. Diversify Wealth Management LLC increased its stake by 4.0%, now holding 45,401 shares valued at $1,573,000 after acquiring an additional 1,745 shares. Hanseatic Management Services Inc. also raised its investment in the company by 1.2%, now owning 30,132 shares valued at $1,075,000. Lastly, USA Financial Formulas significantly ramped up its holdings in Virtu Financial by an impressive 910.5% in the fourth quarter, accumulating total ownership of 11,085 shares worth $396,000 after acquiring an additional 9,988 shares. It is noteworthy that institutional investors and hedge funds currently hold about 45.78% of Virtu Financial's stock.

Virtu Financial Stock Performance

As of Friday, the shares of NASDAQ VIRT opened at $39.52. The financial service provider's fifty-day moving average price stands at $36.55, while its 200-day moving average price is $32.56. Over the past year, Virtu Financial recorded a low of $16.02 and a high of $39.60. The company's market capitalization is estimated at $6.11 billion, presenting a price-to-earnings (PE) ratio of 19.86, a price/earnings to growth (P/E/G) ratio of 0.49, and a beta of 0.45. Notably, the company’s debt-to-equity ratio is 1.23, with both the current and quick ratios at 0.47.

Virtu Financial announced its latest earnings results on Thursday, October 24th. The company reported earnings of $0.82 per share for the quarter, surpassing the consensus estimate of $0.79 by $0.03. The revenue recorded during this quarter was $388.00 million, which also exceeded the anticipated revenue of $379.18 million. Virtu Financial demonstrated a net margin of 7.29% alongside a return on equity of 23.22%. Year-over-year, the company's revenue grew by 30.2%, compared to the same period last year when it recorded $0.40 earnings per share. Equity research analysts are expecting Virtu Financial, Inc. to post earnings per share (EPS) of 2.9 for the current financial year.

Quarterly Dividend Announcement

Furthermore, Virtu Financial has announced a quarterly dividend that was paid on Sunday, December 15th. Shareholders on record as of Sunday, December 1st were entitled to receive a dividend of $0.24. This dividend comes after the ex-dividend date, which was set for Friday, November 29th. The annualized dividend thus amounts to $0.96, offering a yield of 2.43%. Currently, Virtu Financial maintains a dividend payout ratio of 48.24%.

Analyst Ratings and Price Targets

Recently, several brokerage firms issued updated reports regarding Virtu Financial. Morgan Stanley increased its target price from $23.00 to $25.00 and assigned an “equal weight” rating in a research note dated Thursday, October 17th. Meanwhile, the Goldman Sachs Group raised its target price to $29.00 from $26.00, giving the company a “neutral” rating in a report released on Monday, September 30th. On the other hand, Bank of America cut its price target from $37.00 to $35.00 while assigning a “buy” rating in a research update dated Thursday, October 3rd. In another update, Piper Sandler raised their price target for Virtu Financial from $35.00 to $40.00, assigning the stock an “overweight” rating in a note published on Tuesday, January 7th. Lastly, Citigroup increased its price target on Virtu Financial from $32.00 to $37.00, giving the company a “buy” rating as per a report dated Wednesday, October 9th. Collectively, five investment analysts have rated Virtu Financial with a hold rating, while three have issued a buy rating. According to MarketBeat.com data, Virtu Financial sits on an average rating of “Hold” with a consensus target price set at $30.21.

Company Overview

Virtu Financial, Inc. operates in the financial services sector across the United States, Asia Pacific, Canada, EMEA, Ireland, and globally. The company functions through two main segments: Market Making and Execution Services. Among the services offered are execution, liquidity sourcing, analytics, broker-neutral trading, capital markets solutions, and multi-dealer platforms centered around workflow technology.

Investment, Financial, Stocks