Virtu Financial (VIRT) AI Stock Analysis

• Market Cap: $6.21B
• Dividend Yield: 2.35%
• Average Volume (3M): 979.85K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.33
• Revenue Growth: 26.02%
• EPS Growth: 142.79%
• Country: US
• Employees: 969
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Capital Markets
• EPS (TTM): 1.30
• Shares Outstanding: 85,911,650
• 10 Day Avg. Volume: 734,020
• 30 Day Avg. Volume: 979,850
• PEG Ratio: 1.96
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.87
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $40.43
• Price Target Upside: -1.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 80 Outperform
• Price Target: $47.00 ▲(14.97%Upside)

Virtu Financial's strong financial performance, highlighted by high profitability and robust cash flow, significantly contributes to its stock score. Strategic growth initiatives and positive corporate events further bolster the outlook. However, technical indicators show only moderate bullish momentum, and concerns about retail sustainability temper the enthusiasm.

Positive Factors

Earnings Forecast

Following 1Q25 earnings, the adjusted EPS for 2Q25 was raised by 15% due to higher ANTI and execution services revenue.

Revenue Growth

The company posted its sixth consecutive quarter of increasing revenue in its Execution Services, achieving its best result since early 2022.

Strategic Initiatives

Newer business initiatives are accelerating, with contributions from options market-making, ETF blocks, and crypto significantly impacting the firm's strong performance.

Negative Factors

Market Volatility

Potential downside risks include choppy equity markets that disengage retail investors, reducing volumes.

Valuation Concerns

The stock has outperformed significantly, but a less attractive valuation and potential for profit deceleration in the second half of 2025 led to a rating downgrade to Neutral.

Volume Decline

Concerns have risen that volumes and spreads could experience a meaningful decline in the second half of 2025, particularly in the retail channel.

Virtu Financial Business Overview & Revenue Model

Company Description

Virtu Financial, Inc., a financial services company, provides data, analytics, and connectivity products to clients worldwide. The company operates in two segments, Market Making and Execution Services. Its product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology. The company's solutions enable clients to trade on various venues across countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income, cryptocurrencies, and other commodities. Its analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across markets. Virtu Financial, Inc. was founded in 2008 and is headquartered in New York, New York.

How the Company Makes Money

Virtu Financial primarily makes money through its market making and execution services. As a market maker, the company provides liquidity to financial markets by offering to buy and sell securities, thereby earning a spread between the bid and ask prices. Additionally, Virtu generates revenue through its execution services, where it facilitates trades for institutional clients, earning fees or commissions. Key revenue streams include trading profits from its market making activities and service fees from clients utilizing its execution platforms. The company's earnings are significantly influenced by trading volumes, market volatility, and the effective deployment of its proprietary technology. Furthermore, partnerships with financial institutions and exchanges enhance its operational reach and contribute to its revenue growth.

Virtu Financial Financial Statement Overview

Summary

Virtu Financial demonstrates strong financial health with excellent profitability, efficient cash flow management, and moderate leverage. High profit margins and robust cash flows position it well within the industry. However, inconsistent revenue growth and low equity ratio require attention.

Income Statement

Virtu Financial's income statement reveals strong profitability with a gross profit margin of 81.34% and a net profit margin of 27.95% for the TTM, indicating efficient cost management and healthy earnings. The EBIT and EBITDA margins are also robust at 30.74% and 69.74%, respectively. However, revenue growth has been volatile, showing a TTM growth rate of 0.77% after a decline the previous year, suggesting some instability in revenue generation.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.21, indicating a conservative leverage approach. The return on equity is impressive at 51.89% for the TTM, highlighting efficient use of equity. The equity ratio stands at 8.90%, slightly low, suggesting a risk of over-leverage in case of fluctuating market conditions. Overall, the balance sheet is stable but with potential vulnerability due to low equity support.

Cash Flow

Cash flow analysis shows strong operational performance with an operating cash flow to net income ratio of 1.25, indicating good cash generation relative to earnings. The free cash flow has grown significantly, with a TTM free cash flow of $986.52 million, up from $544.68 million the previous year, reflecting robust cash management. The free cash flow to net income ratio is 1.22, suggesting efficient conversion of profits into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.90B	2.88B	2.29B	2.01B	2.58B	2.94B
	Gross Profit
2.02B	1.77B	1.39B	2.01B	2.58B	2.94B
	EBIT
1.05B	1.32B	967.72M	567.85M	1.03B	1.35B
	EBITDA
1.66B	1.39B	1.05B	699.06M	1.17B	1.49B
	Net Income Common Stockholders
313.91M	276.42M	142.04M	265.03M	476.88M	649.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
399.58M	872.51M	820.44M	981.58M	1.07B	889.56M
	Total Assets
12.79B	15.36B	14.47B	10.58B	10.32B	9.97B
	Total Debt
1.73B	5.71B	1.73B	1.80B	1.61B	1.64B
	Net Debt
1.33B	4.84B	906.77M	814.37M	533.67M	749.72M
	Total Liabilities
1.73B	13.87B	13.06B	1.80B	1.61B	1.64B
	Stockholders Equity
1.21B	1.25B	1.20B	1.34B	1.55B	1.47B
Cash Flow		Free Cash Flow
956.86M	544.68M	454.00M	679.60M	1.15B	1.03B
	Operating Cash Flow
1.01B	598.99M	491.78M	706.80M	1.17B	1.06B
	Investing Cash Flow
-65.38M	-61.85M	-94.48M	-29.53M	-87.35M	-2.56M
	Financing Cash Flow
-601.60M	-469.56M	-585.03M	-735.75M	-957.86M	-839.92M

Virtu Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIRT, the sentiment is Positive. The current price of 40.88 is below the 20-day moving average (MA) of 41.24, above the 50-day MA of 39.29, and above the 200-day MA of 35.48, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 49.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIRT.

Virtu Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBKR	81 Outperform	$87.86B	28.70	19.26%	0.52%	14.67%	23.59%
TW	80 Outperform	$32.96B	57.26	9.14%	0.30%	28.86%	29.26%
VIRT	80 Outperform	$6.21B	11.61	23.87%	2.35%	26.02%	142.79%
SCHW	77 Outperform	$159.89B	26.75	14.12%	1.18%	2.32%	37.66%
MKTX	75 Outperform	$8.05B	37.29	16.25%	1.40%	7.22%	-15.53%
SNEX	68 Neutral	$4.16B	14.20	16.69%	―	67.71%	19.42%
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%

Virtu Financial Corporate Events

Virtu Financial Confirms Key Decisions at Annual Meeting

On June 2, 2025, Virtu Financial, Inc. held its annual meeting of stockholders where several key decisions were made. The election of Class I directors for a three-year term, approval of executive compensation, and the continuation of annual advisory votes on executive pay were confirmed. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year 2025 was ratified, and amendments to the Management Incentive Plan were approved, impacting the company’s governance and compensation strategies.

The most recent analyst rating on (VIRT) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Virtu Financial stock, see the VIRT Stock Forecast page.

Virtu Financial Announces Transfer to NYSE

On May 29, 2025, Virtu Financial announced its decision to transfer the listing of its Class A Common Stock from Nasdaq to the New York Stock Exchange (NYSE), with trading on Nasdaq ceasing on June 16, 2025, and commencing on the NYSE on June 17, 2025. This strategic move is aimed at leveraging the NYSE’s platform to enhance transparency, excellence, and long-term value creation for shareholders, while deepening relationships with investors and maintaining its role as a prominent liquidity provider in the global financial markets.

The most recent analyst rating on (VIRT) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Virtu Financial stock, see the VIRT Stock Forecast page.