Virtu Financial (VIRT) AI Stock Analysis

• Market Cap: $6.85B
• Dividend Yield: 2.16%
• Average Volume (3M): 797.30K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.34
• Revenue Growth: 26.02%
• EPS Growth: 142.79%
• Country: US
• Employees: 969
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Capital Markets
• EPS (TTM): 1.30
• Shares Outstanding: 85,911,650
• 10 Day Avg. Volume: 731,511
• 30 Day Avg. Volume: 797,300
• PEG Ratio: -0.21
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.12
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: 0.67
• 1Y Price Target: $40.43
• Price Target Upside: -8.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 81 Outperform
• Price Target: $51.00 ▲(14.81%Upside)

Virtu Financial is well-positioned with strong financial performance, robust trading income, and strategic growth initiatives in new markets. The stock shows positive technical trends but with potential overbought conditions. Valuation metrics suggest the stock is undervalued, while the earnings call provides a positive outlook with some cautionary notes on retail activity sustainability. The strategic move to the NYSE further supports the company's growth narrative.

Positive Factors

Business Initiatives

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

Earnings

VIRT stock returned 75% over last 12 months and 17% year-to-date due to strong volumes in both its Market Making and Execution Services businesses.

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.

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. The company maintains high margins and robust cash flows despite inconsistent revenue growth, positioning it well within the capital markets industry. However, the balance sheet's low equity ratio suggests potential vulnerability.

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
EBITDA	1.66B	1.39B	1.05B	699.06M	1.17B	1.49B
Net Income	313.91M	276.42M	142.04M	265.03M	476.88M	649.20M
Balance Sheet
Total Assets	17.55B	15.36B	14.47B	10.58B	10.32B	9.97B
Cash, Cash Equivalents and Short-Term Investments	723.65M	872.51M	820.44M	981.58M	1.07B	889.56M
Total Debt	7.85B	5.71B	1.73B	1.80B	1.61B	1.64B
Total Liabilities	15.99B	13.87B	13.06B	1.80B	1.61B	1.64B
Stockholders Equity	1.31B	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: 44.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 44.42 is above the 20-day moving average (MA) of 41.73, above the 50-day MA of 40.88, and above the 200-day MA of 36.40, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 70.21 is Negative, neither overbought nor oversold. The STOCH value of 92.30 is Negative, 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	82 Outperform	$22.78B	28.85	19.26%	2.40%	14.67%	23.60%
VIRT	81 Outperform	$6.85B	12.81	23.87%	2.16%	26.02%	142.79%
SCHW	78 Outperform	$163.49B	27.35	14.12%	1.20%	2.32%	37.66%
TW	77 Outperform	$34.27B	59.54	9.14%	0.33%	28.86%	29.26%
MKTX	72 Outperform	$8.23B	38.13	16.25%	1.38%	7.22%	-15.53%
SNEX	69 Neutral	$4.47B	15.49	16.69%	―	67.71%	19.42%
Sector *	58 Neutral	$12.55B	5.32	-2.71%	5.27%	5.88%	-56.03%

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.