Virtu Financial (NYSE:VIRT) Issues Quarterly Earnings Results, Beats Expectations By $0.25 EPS

Virtu Financial (NYSE:VIRT) posted its earnings results on Thursday. The company reported $1.77 earnings per share for the quarter, topping analysts’ consensus estimates of $1.52 by $0.25, FiscalAI reports. Virtu Financial had a net margin of 13.50% and a return on equity of 49.06%. The firm had revenue of $956.39 million for the quarter, compared to analyst estimates of $647.02 million. During the same period in the previous year, the firm posted $1.05 EPS. The company’s revenue for the quarter was up 147.1% compared to the same quarter last year.

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 Trading Up 0.2%

Shares of Virtu Financial stock traded up $0.10 on Friday, hitting $54.05. 1,030,222 shares of the company’s stock traded hands, compared to its average volume of 1,040,930. Virtu Financial has a one year low of $31.55 and a one year high of $68.76. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.45 and a quick ratio of 0.45. The company has a fifty day moving average of $57.63 and a two-hundred day moving average of $52.43. The company has a market capitalization of $8.39 billion, a price-to-earnings ratio of 7.94, a price-to-earnings-growth ratio of 0.39 and a beta of 0.67.

Virtu Financial Dividend Announcement

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

Insider Buying and Selling at Virtu Financial

In related news, Director Joseph J. Grano, Jr. sold 8,400 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $60.94, for a total transaction of $511,896.00. Following the transaction, the director directly owned 33,814 shares of the company’s stock, valued at $2,060,625.16. This represents a 19.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Nixon sold 9,094 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $60.13, for a total transaction of $546,822.22. Following the completion of the sale, the director owned 30,902 shares of the company’s stock, valued at $1,858,137.26. The trade was a 22.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 46.76% of the company’s stock.

Key Headlines Impacting Virtu Financial

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

Analysts Set New Price Targets

Several equities analysts have recently issued reports on VIRT shares. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Virtu Financial in a research note on Wednesday, August 26th. JPMorgan Chase & Co. upgraded Virtu Financial from a “neutral” rating to an “overweight” rating and set a $84.00 price objective for the company in a report on Monday, October 5th. Piper Sandler reaffirmed an “overweight” rating on shares of Virtu Financial in a research report on Friday, October 2nd. Zacks Research lowered Virtu Financial from a “strong-buy” rating to a “hold” rating in a research report on Thursday, September 24th. Finally, Wall Street Zen downgraded Virtu Financial from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Virtu Financial presently has an average rating of “Hold” and an average price target of $68.25.

Virtu Financial Company Profile

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.