In a report released today, Michael Cyprys from Morgan Stanley maintained a Sell rating on Virtu Financial, with a price target of $35.00.
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Michael Cyprys has given his Sell rating due to a combination of factors, primarily focusing on the revised estimates for Virtu Financial’s earnings. The analyst has adjusted the second quarter earnings per share (EPS) estimate downward, reflecting a reduction in market-making revenues by 6%, now projected at $409 million compared to the previous estimate of $436 million. This adjustment is based on a reassessment of trading assumptions, particularly emphasizing the notional value traded in equity markets, which was less active than anticipated, and a focus on median volatility measures that were not as strong as average volatility metrics.
As a result of these adjustments, the EPS estimate for the second quarter of 2025 has been reduced by 13 cents, or 8%, to $1.44 from the earlier estimate of $1.57. Additionally, the EPS projections for 2025 and 2026 have been slightly lowered, with the 2025 estimate declining by 3% to $4.57 and the 2026 estimate decreasing by 1 cent to $3.88. These revisions suggest a less favorable risk-reward profile for Virtu Financial, contributing to the Sell rating.
Cyprys covers the Financial sector, focusing on stocks such as BlackRock, CME Group, and Cboe Global Markets. According to TipRanks, Cyprys has an average return of 4.3% and a 53.96% success rate on recommended stocks.