Virtu Financial Inc. (NASDAQ: VIRT) Seen Running Too Hot, Let’s Look At This More Closely

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Fidelity Management & Research Co. recently announced the acquisition of new stake in Virtu Financial Inc. (NASDAQ:VIRT). The institutional investor has increased its shareholding in the Financial company by 24.56% to 9.51 million shares with purchase of 1.88 million shares. This fresh investment now brings its stake to 7.90% valued currently at $224.43 million. In addition, Wells Capital Management, Inc. raised its holdings by 0.88 million to 1.35 million shares.

With over 1.08 million Virtu Financial Inc. (VIRT) shares trading Wednesday and a closing price of $26.03 on the day, the dollar volume was approximately $28.18 million. The shares have shown a negative weekly performance of -0.08% and its price on 07/22/20 lost nearly -0.15%. Currently, there are 119.76M common shares owned by the public and among those 86.76M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for VIRT have a consensus price objective of $27.30. The analysts have set the share’s price value over the next 12 months at a high of $31.00 and a low of $24.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Virtu Financial Inc. stock is 2.40 for the next 12 months. The average price target is 3.2% above its last price level and an upside to the estimated low will see the stock lose -8.46% over that period. But an upside of 16.03% will see the stock hit the forecast high price target while mean target price for the stock is $27.00.

Insiders at the company have transacted a total of 52 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 33 of these insider trades were purchases, accounting for 431,805 shares. Insider sales of the common stock occurred on 19 occasions, with total insider shares sold totaling 5,673,331 shares.

The top 3 mutual fund holders in Virtu Financial Inc. are Vanguard Total Stock Market Index, Fidelity Balanced Fund, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 2.24 million shares of the company’s stock, all valued at over $52.97 million. The company bought an additional 46321.0 shares recently to bring their total holdings to about 1.86% of the shares outstanding. Fidelity Balanced Fund sold -0.38 million shares to see its total holdings shrink to 2.0 million shares valued at over $47.19 million and representing 1.66% of the shares outstanding. Vanguard Small Cap Index Fund sold 15871.0 shares to bring its total holdings to over 1.96 million shares at a value of $46.32 million. Vanguard Small Cap Index Fund now owns shares totaling to 1.63% of the shares outstanding.

Shares of Virtu Financial Inc. (NASDAQ: VIRT) opened at $26.28, up $0.21 from a prior closing price of $26.07. However, the script later closed the day at $26.03, down -0.15%. The company’s stock has a 5-day price change of -0.08% and 9.03% over the past three months. VIRT shares are trading 63.04% year to date (YTD), with the 12-month market performance up to 19.81% higher. It has a 12-month low price of $14.94 and touched a high of $26.82 over the same period. Currently, 1.08 million shares have been traded, compared to an average intraday trading volume of 1.41 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.77%, 10.59%, and 30.65% respectively.

Institutional ownership of Virtu Financial Inc. (NASDAQ: VIRT) shares accounts for 92.20% of the company’s 119.76M shares outstanding. Mutual fund holders own 40.95%, while other institutional holders and individual stakeholders account for 71.08% and 31.23% respectively.

It has a market capitalization of $5.05B and a beta (3y monthly) value of -0.40. The stock’s trailing 12-month PE ratio is 19.50, while the earnings-per-share (ttm) stands at $1.34. The company has a debt-to-equity ratio at 3.39. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.98% over the week and 3.40% over the month.

Analysts forecast that Virtu Financial Inc. (VIRT) will achieve an EPS of $1.57 for the current quarter, $0.73 for the next quarter and $2.15 for 2021. The lowest estimate earnings-per-share for the quarter is $1.32 while analysts give the company a high EPS estimate of $1.7. Comparatively, EPS for the current quarter was $0.16 a year ago. Earnings per share for the fiscal year are expected to decrease by -119.10%, and -56.47% over the next financial year. EPS should grow at an annualized rate of -2.71% over the next five years, compared to -19.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate Virtu Financial Inc. (VIRT) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 6 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the VIRT, a number of firms have released research notes about the stock. Compass Point stated their Buy rating for the stock in a research note on March 02, 2020, with the firm’s price target at $21. Goldman coverage for the Virtu Financial Inc. (VIRT) stock in a research note released on January 06, 2020 offered a Neutral rating with a price target of $15.50. UBS was of a view on November 08, 2019 that the stock is Neutral, while JP Morgan gave the stock Overweight rating on September 03, 2019, issuing a price target of $23. Rosenblatt on their part issued Buy rating on June 26, 2019.

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