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Virtus Investment Partners (VRTS)
NYSE:VRTS
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Virtus Investment Partners (VRTS) AI Stock Analysis

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VRTS

Virtus Investment Partners

(NYSE:VRTS)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
$192.00
▲(15.40% Upside)
Virtus Investment Partners' overall score reflects solid financial performance and attractive valuation, offset by bearish technical indicators and mixed earnings call results. The company's strong profitability and cash flow management are significant strengths, but high leverage and market challenges pose risks.
Positive Factors
ETF Segment Growth
The significant growth in the ETF segment indicates strong demand and effective market positioning, enhancing long-term revenue potential and diversification.
Improved Free Cash Flow
Improved free cash flow enhances financial flexibility, enabling strategic investments and debt reduction, supporting sustainable growth.
Dividend Increase
Consistent dividend increases reflect strong cash generation and management's commitment to returning value to shareholders, indicating financial health.
Negative Factors
High Leverage
High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term stability and growth.
Net Outflows
Significant net outflows indicate challenges in retaining assets, which can impact revenue growth and highlight competitive pressures.
Negative Revenue Growth
Negative revenue growth suggests potential difficulties in market expansion and client retention, affecting long-term profitability.

Virtus Investment Partners (VRTS) vs. SPDR S&P 500 ETF (SPY)

Virtus Investment Partners Business Overview & Revenue Model

Company DescriptionVirtus 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 MoneyVirtus Investment Partners primarily generates revenue through management fees charged on assets under management (AUM) and performance fees based on the investment performance of its funds. The company earns management fees as a percentage of the AUM across its various investment products, which can vary depending on the fund type and investment strategy. Additionally, Virtus may receive performance fees when certain funds exceed benchmark returns, providing an incentive for strong performance. The firm also benefits from distribution partnerships with financial advisors and platforms, enhancing its reach and potentially increasing AUM. Overall, its revenue model is heavily reliant on the growth of AUM and the performance of its investment offerings.

Virtus Investment Partners Earnings Call Summary

Earnings Call Date:Oct 24, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 30, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in the ETF segment and improved earnings and operating margins. However, these positives were offset by significant net outflows and challenges faced by quality-oriented strategies in a momentum-driven market. Despite some positive developments like dividend increases and debt refinancing, the balanced presence of both highlights and lowlights suggests a mixed overall performance.
Q3-2025 Updates
Positive Updates
ETF Segment Growth
ETF assets reached $4.7 billion, marking a 79% increase over the prior year. ETF sales and flows reached their highest quarterly level at $0.9 billion each, supported by strong investment performance.
Earnings and Operating Margin Improvement
Earnings per share as adjusted increased to $6.69 from $6.25 in the previous quarter. The operating margin increased by 170 basis points to 33%.
Dividend Increase and Debt Refinancing
The company increased its quarterly dividend for the eighth consecutive year and completed a debt refinancing, adding $158 million of cash to the balance sheet.
Negative Updates
Net Outflows and Headwinds in Quality-Oriented Strategies
The company experienced total net outflows of $3.9 billion, unchanged from the previous quarter. Quality-oriented equity strategies faced headwinds in a market favoring momentum.
Decline in Average Assets Year-Over-Year
Earnings per share as adjusted decreased 3% year-over-year due to lower average assets under management.
Company Guidance
During the third quarter of 2025, Virtus Investment Partners demonstrated solid financial performance, with key metrics highlighting a positive outlook. The company's exchange-traded fund (ETF) business was a significant highlight, with ETF assets growing 79% year-over-year to $4.7 billion, driven by strong sales and net flows reaching $0.9 billion each. The quarter also saw an increase in earnings per share (EPS) to $6.69, up from $6.25 in the previous quarter, and a rise in the operating margin to 33%. Despite net outflows of $3.9 billion, the firm achieved positive net flows in fixed income and alternative strategies. The company also completed a debt refinancing, enhancing liquidity and financial flexibility, and increased its quarterly dividend for the eighth consecutive year. Looking ahead, Virtus plans to continue expanding its ETF offerings and exploring inorganic growth opportunities, while maintaining a disciplined approach to capital management, including share repurchases.

Virtus Investment Partners Financial Statement Overview

Summary
Virtus Investment Partners shows solid profitability with strong margins and improved free cash flow. However, challenges in revenue growth and high leverage pose risks that require careful management.
Income Statement
72
Positive
Virtus Investment Partners shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth, but the company maintains strong profitability with a gross profit margin of 52.47% and a net profit margin of 16.36%. The EBIT and EBITDA margins are robust at 43.50% and 50.74%, respectively, indicating efficient operations. However, the negative revenue growth rate suggests potential challenges in revenue generation.
Balance Sheet
65
Positive
The balance sheet reveals a high debt-to-equity ratio of 2.62, which is a concern as it indicates significant leverage. However, the company has a reasonable return on equity of 16.25%, showing effective use of equity to generate profits. The equity ratio stands at 24.25%, suggesting a moderate level of equity financing relative to total assets.
Cash Flow
68
Positive
Cash flow analysis shows improvement with a 21.58% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is low at 0.26, indicating potential cash flow challenges. However, the free cash flow to net income ratio is strong at 0.82, suggesting good cash conversion from profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue887.89M902.82M841.49M881.72M974.67M603.23M
Gross Profit465.84M470.23M436.74M510.46M616.44M335.93M
EBITDA450.56M460.20M433.77M321.51M388.66M300.08M
Net Income145.29M121.75M130.62M117.54M208.13M79.96M
Balance Sheet
Total Assets3.70B3.99B3.68B3.95B3.93B3.47B
Cash, Cash Equivalents and Short-Term Investments172.20M399.58M340.33M588.53M585.54M333.49M
Total Debt2.35B2.47B2.18B2.34B2.30B2.39B
Total Liabilities2.67B2.99B2.71B3.02B2.96B2.63B
Stockholders Equity896.40M897.49M863.93M817.02M828.30M711.14M
Cash Flow
Free Cash Flow31.44M-3.82M228.34M126.09M659.89M-227.15M
Operating Cash Flow38.30M1.75M237.16M132.67M665.73M-226.10M
Investing Cash Flow-17.16M-16.95M-129.73M-27.47M-175.03M8.68M
Financing Cash Flow-129.73M74.95M-356.11M-102.06M-244.40M235.33M

Virtus Investment Partners Technical Analysis

Technical Analysis Sentiment
Negative
Last Price166.38
Price Trends
50DMA
191.39
Negative
100DMA
190.19
Negative
200DMA
181.59
Negative
Market Momentum
MACD
-4.81
Positive
RSI
27.25
Positive
STOCH
12.70
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 166.38 is below the 20-day moving average (MA) of 186.01, below the 50-day MA of 191.39, and below the 200-day MA of 181.59, indicating a bearish trend. The MACD of -4.81 indicates Positive momentum. The RSI at 27.25 is Positive, neither overbought nor oversold. The STOCH value of 12.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRTS.

Virtus Investment Partners Risk Analysis

Virtus Investment Partners disclosed 19 risk factors in its most recent earnings report. Virtus Investment Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Virtus Investment Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$4.35B12.9519.77%8.60%-12.92%
76
Outperform
$3.89B11.1532.69%2.59%5.92%54.93%
76
Outperform
$712.77M23.2410.03%5.40%53.35%-24.09%
74
Outperform
$6.79B17.9813.47%0.02%-5.87%-21.51%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
$1.20B9.1115.07%5.07%-3.07%18.00%
63
Neutral
$1.69B19.670.08%21.14%42.83%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VRTS
Virtus Investment Partners
166.38
-48.74
-22.66%
AMG
Affiliated Managers
240.27
45.50
23.36%
AB
AllianceBernstein
39.60
4.80
13.79%
FHI
Federated Hermes
48.15
9.49
24.55%
AAMI
Acadian Asset Management
48.19
21.78
82.47%
VINP
Vinci Partners Investments
11.30
1.62
16.74%

Virtus Investment Partners Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Virtus Investment Partners Enters New Credit Agreement
Positive
Oct 1, 2025

On September 26, 2025, Virtus Investment Partners, Inc. entered into a new credit agreement with Morgan Stanley Senior Funding, Inc. and other lenders, replacing its previous credit agreement from September 28, 2021. The new agreement includes a $400 million term loan with a seven-year term and a $250 million revolving credit facility with a five-year term. This move allows the company to refinance its existing term loan and support general corporate purposes, potentially enhancing its financial flexibility and operational capabilities.

The most recent analyst rating on (VRTS) stock is a Hold with a $210.00 price target. To see the full list of analyst forecasts on Virtus Investment Partners stock, see the VRTS Stock Forecast page.

Virtus Investment Partners’ Earnings Call Highlights Growth and Challenges
Jul 29, 2025

The latest earnings call from Virtus Investment Partners presented a generally positive outlook, despite some challenges. The company reported growth in assets under management, strong ETF performance, improved operating margins, and strategic share repurchases. However, it faced issues with net outflows in equity strategies and a decline in sales compared to the previous quarter. Overall, the sentiment was optimistic due to the company’s strategic positioning and long-term investment performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 24, 2025