Virtus Investment Partners (VRTS) AI Stock Analysis

• Market Cap: $844.37M
• Dividend Yield: 5.41%
• Average Volume (3M): 73.11K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.04
• Revenue Growth: -3.07%
• EPS Growth: 18.00%
• Country: US
• Employees: 805
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 6.50
• Shares Outstanding: 6,695,515
• 10 Day Avg. Volume: 101,810
• 30 Day Avg. Volume: 73,110
• PEG Ratio: 0.45
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.34
• P/FCF Ratio: -15.04
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: 2.10
• 1Y Price Target: $164.50
• Price Target Upside: 30.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 25.07
• Revenue Forecast (FY): $768.17M

• Rating: 55 Neutral
• Price Target: $129.00 ▲(2.29% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is held back mainly by volatile/negative recent cash flow and weak technical trend signals (price below major moving averages, negative MACD). These are partially offset by attractive valuation (low P/E and high dividend yield) and a mixed-but-stabilizing earnings narrative featuring ETF momentum, cost discipline, and solid liquidity despite continued outflow pressure.

Positive Factors

ETF Growth & Product Expansion

Rapid ETF AUM growth and ongoing active ETF product launches represent a durable shift in distribution and client demand. ETFs broaden Virtus’ addressable market, attract fee-stable, scalable assets and help diversify revenue away from outflow-prone active equity sleeves, supporting steadier AUM over time.

Private markets M&A expansion

Strategic acquisitions into private credit and venture-focused private markets materially diversify product mix toward higher-fee, less correlated alternatives. This structural expansion increases distribution opportunities to wealth channels and supports longer-term fee resilience beyond public active equity cycles.

Strong liquidity & cleaner balance sheet

Substantial cash, an undrawn revolver and very low net leverage provide durable financial flexibility to fund M&A, manage redemptions, sustain buybacks and meet incentive/cash obligations without forcing distressed asset sales. This liquidity buffer supports execution of strategic initiatives.

Negative Factors

Large net outflows & AUM decline

Meaningful and concentrated net outflows shrink the fee-bearing asset base and reduce recurring revenue. Because management fees scale with AUM, persistent redemptions materially pressure top-line and operating leverage, making margins and growth harder to sustain absent durable reacceleration in flows.

Volatile & negative cash generation

Intermittent negative operating and free cash flow despite positive net income undermines earnings quality and capital allocation flexibility. This volatility constrains repeatable buybacks, dividend sustainability and M&A funding without relying on debt or equity, increasing long-term execution risk.

Concentrated equity partial redemptions

High share of partial redemptions from core quality equity strategies signals clients trimming exposure rather than terminating relationships, threatening the firm’s higher-fee active base. If style headwinds persist, fee mix erosion and slower recovery of AUM pose multi-quarter structural revenue risk.

Virtus Investment Partners Business Overview & Revenue Model

Company Description

Virtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.

How the Company Makes Money

Virtus primarily makes money by earning fees for managing client assets. Its core revenue stream is investment management fees calculated as a percentage of assets under management (AUM) across its sponsored funds (e.g., mutual funds and ETFs) and institutional/separate accounts; as AUM rises or falls with market performance and net client flows, fee revenue typically moves with it. The company can also earn other asset-based and service-related revenues tied to its investment products and client relationships, such as administrative/distribution-related fees associated with operating and servicing funds and accounts, where applicable. Virtus’s earnings are supported by distributing products through third-party channels (e.g., broker-dealers and registered investment advisers) and by working with affiliated or subadvised investment managers that run specific strategies under the Virtus platform; these arrangements generally involve Virtus retaining a portion of the management fee while paying the portfolio management partner/subadviser per contract terms. Key factors influencing revenue and profitability include AUM levels, product mix (fee rates vary by strategy/vehicle), market conditions, net sales/redemptions, and the economics of distribution and subadvisory partnerships.

Virtus Investment Partners Financial Statement Overview

Summary

Profitability is solid (mid-teens to low-20s net margins historically) and returns are respectable, but revenue momentum has been uneven (including a ~5% decline in 2025). The biggest drag is highly volatile cash generation with negative operating/free cash flow in 2025 (and negative FCF in 2024), which reduces confidence in earnings quality and flexibility.

Income Statement

Profitability is solid for an asset manager, with net margins generally in the mid-teens to low-20s (2025: ~16.7%; 2021: ~21.4%) and consistently strong operating profitability over the period. However, top-line momentum is uneven: revenue declined in 2022 and 2023, recovered in 2024, and fell again in 2025 (about -5%), which limits the quality of earnings growth despite healthy margins.

Balance Sheet

Returns on shareholder capital are respectable (roughly mid-teens ROE in most years; 2025: ~14.8%), but leverage has been a key risk factor historically with debt running around ~2.6x–3.4x equity from 2020–2024. While 2025 shows zero debt and a much cleaner balance sheet, the sharp shift versus prior years raises questions about durability/structure, and overall leverage history still weighs on the score.

Cash Flow

Cash generation is highly volatile. The business produced strong cash flow in 2021 and 2023, but saw negative operating and free cash flow in 2020 and again in 2025, and free cash flow was also negative in 2024. This inconsistency—especially negative cash flow alongside positive net income in some periods—reduces confidence in earnings quality and financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	830.59M	902.82M	841.49M	881.72M	974.67M
Gross Profit	622.00M	470.23M	436.74M	510.46M	616.44M
EBITDA	409.40M	460.20M	433.77M	325.85M	474.08M
Net Income	138.40M	121.75M	130.62M	117.54M	208.13M
Balance Sheet
Total Assets	4.29B	3.99B	3.68B	3.95B	3.93B
Cash, Cash Equivalents and Short-Term Investments	477.17M	399.58M	340.33M	588.53M	585.54M
Total Debt	483.18M	2.47B	2.25B	2.34B	2.30B
Total Liabilities	3.31B	2.99B	2.71B	3.02B	2.96B
Stockholders Equity	934.04M	897.49M	863.93M	817.02M	828.30M
Cash Flow
Free Cash Flow	-74.09M	-3.82M	228.34M	126.09M	659.89M
Operating Cash Flow	-67.20M	1.75M	237.16M	132.67M	665.73M
Investing Cash Flow	-47.34M	-16.95M	-129.73M	-27.47M	-175.03M
Financing Cash Flow	191.03M	74.95M	-356.11M	-102.06M	-244.40M

Virtus Investment Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 126.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTS, the sentiment is Negative. The current price of 126.11 is below the 20-day moving average (MA) of 137.94, below the 50-day MA of 151.02, and below the 200-day MA of 170.18, indicating a bearish trend. The MACD of -5.82 indicates Positive momentum. The RSI at 28.51 is Positive, neither overbought nor oversold. The STOCH value of 13.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRTS.

Virtus Investment Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FHI	79 Outperform	$4.33B	9.70	35.33%	2.46%	9.32%	53.51%
AB	78 Outperform	$3.52B	12.97	18.76%	8.93%	―	-12.92%
VINP	73 Outperform	$642.57M	21.23	15.08%	4.56%	81.45%	-26.75%
AMG	72 Outperform	$7.26B	11.47	22.04%	0.01%	1.08%	8.24%
AAMI	69 Neutral	$1.80B	12.09	7024.00%	0.08%	21.53%	42.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VRTS	55 Neutral	$844.37M	8.05	15.07%	5.41%	-3.07%	18.00%

Virtus Investment Partners Corporate Events

Virtus Expands into Private Markets with Keystone Acquisition

Virtus Investment Partners expanded into private markets with the March 1, 2026 closing of its majority acquisition of Keystone National Group, an investment manager focused on asset‑centric private credit and distribution to the wealth channel. The deal adds differentiated asset‑backed lending strategies, including equipment, real estate and corporate finance, to Virtus’ platform as it seeks to capture growing demand for alternative income and diversification.

Through its subsidiary, Virtus acquired 56% of Keystone for an initial $200 million cash payment, with additional scheduled and contingent cash consideration of up to $170 million financed from existing balance sheet resources. Keystone, which managed $2.5 billion as of December 31, 2025 and has deployed more than $6.0 billion across over 750 transactions, will retain its brand, culture and investment autonomy while leveraging Virtus’ distribution network, preserving continuity for clients and aligning management via a significant ongoing equity stake.

The most recent analyst rating on (VRTS) stock is a Hold with a $143.00 price target. To see the full list of analyst forecasts on Virtus Investment Partners stock, see the VRTS Stock Forecast page.

Virtus Investment Partners Acquires Stake in Crescent Cove

On December 16, 2025, Virtus Investment Partners acquired a 35% minority interest in Crescent Cove Advisors, a San Francisco-based firm specializing in private capital solutions for middle market technology companies. This strategic acquisition enhances Virtus’ offerings by adding a differentiated private markets capability focused on lending to high-growth technology sectors, marking a significant milestone for both companies.

The most recent analyst rating on (VRTS) stock is a Sell with a $168.31 price target. To see the full list of analyst forecasts on Virtus Investment Partners stock, see the VRTS Stock Forecast page.