Group 1 - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - Virtu Financial (VIRT) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The Zacks Rank for Virtu Financial is 1 (Strong Buy), suggesting that stocks with this rating and a Style Score of A or B tend to outperform the market in the following month [3] Group 2 - Over the past week, VIRT shares increased by 3.4%, while the Zacks Financial - Miscellaneous Services industry remained flat [5] - In the last quarter, VIRT shares rose by 12.61%, and over the past year, they gained 84.71%, significantly outperforming the S&P 500, which increased by 5.61% and 10.35% respectively [6] - VIRT's average 20-day trading volume is 755,378 shares, indicating a bullish sign with rising stock prices [7] Group 3 - Recent earnings estimate revisions for VIRT show a positive trend, with 5 estimates moving higher and none lower, raising the consensus estimate from $3.66 to $3.98 over the past 60 days [9] - For the next fiscal year, 5 estimates have also moved upwards without any downward revisions, reinforcing the positive outlook for VIRT [9] Group 4 - Considering all factors, VIRT is classified as a 1 (Strong Buy) stock with a Momentum Score of A, making it a promising near-term investment option [11]

Core Insights - The article compares two stocks, Virtu Financial (VIRT) and Moody's (MCO), to determine which is more attractive to value investors [1] Valuation Metrics - Virtu Financial has a forward P/E ratio of 10.05, while Moody's has a forward P/E of 35.65 [5] - The PEG ratio for Virtu Financial is 0.93, indicating a more favorable valuation compared to Moody's PEG ratio of 2.78 [5] - Virtu Financial's P/B ratio is 3.94, significantly lower than Moody's P/B ratio of 22.62 [6] Investment Ratings - Virtu Financial holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Moody's has a Zacks Rank of 3 (Hold) [3] - The Value grade for Virtu Financial is B, whereas Moody's has a Value grade of F, highlighting Virtu's superior valuation metrics [6]

Core Viewpoint - Virtu Financial (VIRT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance and Outlook - The upgrade for Virtu Financial suggests an improvement in its underlying business, which should encourage investors to drive the stock price higher [5]. - Analysts have raised their earnings estimates for Virtu Financial, with the Zacks Consensus Estimate increasing by 8.4% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Virtu Financial's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Virtu Financial Inc. has partnered with Limina to enhance post-trade processing through its TradeOPS platform, aiming to improve trade workflows and client experience [1][9] - The collaboration focuses on automating post-trade tasks, addressing challenges like T+1 settlement cycles and the transition from SWIFT MT to MX, ultimately reducing errors and compliance costs for buy-side firms [2][9] - This strategic partnership allows Virtu to expand its market reach, particularly in Europe, and aims to increase recurring service revenues and client loyalty [3] Company Developments - Earlier in the year, Virtu launched Virtu Technology Solutions to enhance capabilities for sell-side broker-dealers, providing advanced technology for market access and execution [4] - Virtu is implementing a dual-front strategy by offering services to both buy-side and sell-side clients, positioning itself as a comprehensive tech-driven infrastructure provider [5] - In Q1 2025, Virtu reported a 39.6% year-over-year increase in adjusted net trading income in its market-making segment and a 23.5% increase in its execution services unit [5] Stock Performance - Over the past year, Virtu Financial shares have increased by 72.8%, significantly outperforming the industry growth of 12.6% [6]

Core Insights - Virtu Financial and Limina have announced a strategic collaboration to enhance Virtu's TradeOPS platform, aimed at improving post-trade workflows for buyside firms [1][2]. Group 1: Collaboration Details - The collaboration focuses on integrating Virtu's TradeOPS with Limina's cloud-native Order and Portfolio Management System (O/PMS), providing a fully-integrated workflow for clients [2]. - The first joint client, Cliens, is already utilizing the combined capabilities of Virtu's TradeOPS and Limina's platform [3]. - The partnership aims to address operational challenges introduced by recent changes in post-trade settlement processes, such as the shift to T+1 [4]. Group 2: Company Profiles - Virtu Financial is a leading financial services firm that offers execution services, data analytics, and connectivity products across multiple asset classes and global markets [6]. - Limina provides a modern Investment Management Platform designed to enhance productivity and manage operational risks for investment managers [7]. - Cliens is a Swedish active fund manager focused on delivering long-term high returns through various investment strategies [8].

Core Viewpoint - Virtu Financial, Inc. is transferring its Class A Common Stock listing from Nasdaq to the New York Stock Exchange, effective June 17, 2025, which reflects the company's commitment to transparency and long-term value creation for shareholders [1][2][3]. Company Overview - Virtu Financial is a leading provider of global, multi-asset financial services, utilizing advanced technology to deliver liquidity and innovative trading solutions across various asset classes [4]. - The company offers a comprehensive product suite that includes execution, liquidity sourcing, analytics, and broker-neutral platforms, enabling clients to trade on hundreds of venues in over 50 countries [4]. Strategic Move - The transition to the NYSE is seen as a significant step in Virtu's journey, allowing the company to deepen relationships with investors and leverage the NYSE's platform for growth [3]. - The NYSE President highlighted Virtu's critical role in the price formation process within the U.S. capital markets, emphasizing the importance of the company as a liquidity provider [3].

Core Viewpoint - Virtu Financial, Inc. is facing scrutiny as analysts lower earnings projections for 2025 and 2026 despite a strong earnings performance in the first quarter of 2025, leading to a weakened sentiment around the stock [1][2]. Earnings Projections - The Zacks Consensus Estimate for Virtu Financial's adjusted earnings for 2025 and 2026 is now $3.97 and $3.83 per share, reflecting week-over-week declines of 0.5% and 1% respectively [2]. - The 2025 estimates suggest an 11.8% year-over-year growth, while the 2026 forecast indicates a 3.4% decline [2]. Recent Earnings Performance - In the first quarter of 2025, Virtu Financial reported adjusted earnings per share (EPS) of $1.30, surpassing the Zacks Consensus Estimate by 9.2% and marking a 71.1% increase year-over-year [4]. - Interest and dividend income rose by 2.9% to $109.1 million, and adjusted EBITDA increased by 57.7% year-over-year to $319.9 million [5]. Operating Expenses - Total operating expenses surged by 22.1% to $614.1 million, exceeding expectations of $555.6 million [5]. Stock Performance - Virtu Financial's stock has increased by 18.1% year-to-date, outperforming the broader industry's decline of 2.4% [6]. Valuation Metrics - The forward P/E ratio for Virtu Financial is currently at 12.60X, above its five-year median of 8.99X and slightly higher than the peer group average of 12.13X [10]. - The stock appears overvalued compared to its historical average, suggesting limited upside potential in the near term [10]. Growth Catalysts - The Execution Services segment is benefiting from the ITG acquisition, which has expanded the client base and enhanced revenue diversity [12]. - The company is leveraging its technology stack for global equity trading [12]. Balance Sheet Strength - Virtu Financial's total debt has decreased from $1.9 billion in 2019 to $1.7 billion as of March 31, 2025, with cash and equivalents totaling $723.7 million [13]. - The debt-to-capital ratio stands at 54.3%, below the industry average of 55.5% [13]. Shareholder Returns - The company offers a dividend yield of 2.3%, higher than the industry average of 1.7%, and remains committed to a quarterly dividend of 24 cents per share [14]. - In the first quarter of 2025, Virtu repurchased $48.1 million in shares, with $373.8 million still authorized for future buybacks [14].

Core Insights - Virtu Financial, Inc. (VIRT) reported a strong performance in Q1 2025, with shares increasing by 1.8% following the earnings announcement on April 23, driven by higher commissions and technology services revenues [1] - The company achieved adjusted earnings per share (EPS) of $1.30, exceeding the Zacks Consensus Estimate by 9.2% and marking a 71.1% increase year over year [2] Revenue Performance - Total revenues from commissions and technology services rose 27.6% year over year to $151.3 million, surpassing both the Zacks Consensus Estimate and internal estimates [3] - Adjusted net trading income reached $497.1 million, a 35.5% increase year over year, and also exceeded the consensus estimate by 4.7% [2] Expense and Profitability Metrics - Adjusted EBITDA was reported at $319.9 million, reflecting a 57.7% year-over-year increase and exceeding internal estimates [4] - The adjusted EBITDA margin improved by 910 basis points year over year to 64.4% [4] - Total operating expenses increased by 22.1% year over year to $614.1 million, driven by higher brokerage fees, employee compensation, and interest expenses [4] Segment Performance - In the Market Making segment, adjusted net trading income was $382 million, a 39.6% year-over-year increase, with revenues climbing 32.7% to $691.2 million [5] - The Execution Services segment reported adjusted net trading income of $115.1 million, up 23.5% year over year, with total revenues rising 19.7% to $141 million [6] Financial Position - As of March 31, 2025, Virtu Financial had cash and cash equivalents of $723.7 million, a decrease of 17.1% from the end of 2024 [7] - Total assets increased by 14.2% to $17.5 billion, while total equity rose by 5% to $1.6 billion [7] Shareholder Returns - The company repurchased 1.3 million shares for $48.1 million in Q1 2025, with a remaining buyback capacity of $373.8 million [8] - A cash dividend of 24 cents per share was announced, scheduled for payment on June 16, 2025 [8]

Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Virtu Financial (VIRT) and Coinbase Global, Inc. (COIN) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favo ...

Financial Performance - Total revenue for the three months ended March 31, 2025, was $837.9 million, a 30.4% increase from $642.8 million in the same period of 2024 [234]. - Trading income, net accounted for 70% of total revenues in Q1 2025, up from 63% in Q1 2024, reflecting increased trading activity [239]. - Net income for the three months ended March 31, 2025, was $189.6 million, compared to $111.3 million in Q1 2024, representing a 70.3% year-over-year increase [236]. - Earnings per share for Q1 2025 were $1.09 (basic) and $1.08 (diluted), compared to $0.59 for both in Q1 2024 [237]. - Adjusted Net Trading Income for Q1 2025 was $497,140,000, up from $366,871,000 in Q1 2024, representing a 35.4% increase [264]. - EBITDA for Q1 2025 was $283,023,000, compared to $195,509,000 in Q1 2024, reflecting a 44.7% growth [264]. - Adjusted EBITDA for Q1 2025 reached $319,939,000, an increase from $202,832,000 in Q1 2024, marking a 57.7% rise [264]. - Normalized Adjusted Net Income for Q1 2025 was $208,329,000, up from $124,278,000 in Q1 2024, a growth of 67.7% [266]. - Normalized Adjusted EPS for Q1 2025 was $1.30, compared to $0.76 in Q1 2024, reflecting a 71.1% increase [266]. - GAAP Net Income Margin for Q1 2025 was 22.6%, up from 17.3% in Q1 2024 [264]. - Non-GAAP Net Income Margin for Q1 2025 was 38.1%, compared to 30.3% in Q1 2024 [264]. - EBITDA Margin for Q1 2025 was 56.9%, an increase from 53.3% in Q1 2024 [264]. - Adjusted EBITDA Margin for Q1 2025 was 64.4%, up from 55.3% in Q1 2024 [264]. Operating Expenses - Total operating expenses for Q1 2025 were $614.1 million, an increase of 22.1% from $503.0 million in Q1 2024 [236]. - Employee compensation and payroll taxes increased by $18.6 million, or 18.5%, to $119.4 million for the three months ended March 31, 2025, compared to $100.8 million for the same period in 2024 [280]. - Operating expenses increased by $111.1 million, or 22.1%, to $614.1 million for the three months ended March 31, 2025, compared to $503.0 million for the same period in 2024 [277]. Liquidity and Debt - The company had cash and cash equivalents of $68.5 million as of March 31, 2025 [233]. - As of March 31, 2025, the company had $723.7 million in cash and cash equivalents, with borrowings under prime brokerage credit facilities of approximately $158.1 million and long-term debt of approximately $1,768.3 million [292]. - The company expects future liquidity needs to increase due to margin requirements from increased trading activities in existing and new markets [294]. - The company entered into a two-year $1,525.0 million floating-to-fixed interest rate swap agreement in December 2023, fixing interest payment obligations at a rate of 7.5% through November 2025 [309]. - The company completed the offering of $500.0 million aggregate principal amount of 7.50% senior secured first lien notes due 2031 on June 21, 2024 [319]. - The company reported a senior secured first lien term loan of $1,800.0 million, fully drawn on January 13, 2022, to repay previous debts and fund share repurchases [223]. - The company issued $1,245.0 million in Senior Secured First Lien Term B-1 Loans due 2031, which were used to repay all term loans previously outstanding under the Original Credit Agreement [224]. - The Term B-2 Loans, established on February 19, 2025, amount to $1,245.0 million and were used to repay the Term B-1 Loans [226]. - The company issued $500.0 million of 7.50% senior secured first lien notes due 2031, maturing on June 15, 2031 [230]. - As of March 31, 2025, $1,245.0 million was outstanding under the current term loans, with compliance to all applicable covenants [318]. Market Segments and Operations - The company operates in two segments: Market Making and Execution Services, focusing on providing liquidity and trading solutions globally [218]. - The Market Making segment provides competitive bids and offers in over 25,000 securities across 250 venues in 40 countries [219]. - The Execution Services segment earns commissions by acting as an agent for clients in various trading activities, including algorithmic trading and order routing [221]. - The company emphasizes technology and operational efficiency, utilizing a proprietary multi-asset technology platform to enhance market making and execution services [215]. - The company believes that increased market volatility positively impacts its financial performance by widening bid/ask spreads [220]. - The company aims to maintain a low-cost structure while providing a robust product suite to clients across multiple asset classes [214]. Revenue Sources - Commissions, net and technology services revenues increased by $32.7 million, or 27.6%, to $151.3 million for the three months ended March 31, 2025, compared to $118.6 million for the same period in 2024 [274]. - Trading income, net increased by $181.9 million, or 44.6%, to $590.0 million for the three months ended March 31, 2025, compared to $408.1 million for the same period in 2024 [272]. - Interest and dividends income for Q1 2025 was $109.1 million, slightly up from $106.0 million in Q1 2024 [236]. - Interest and dividends income increased by $3.1 million, or 2.9%, to $109.1 million for the three months ended March 31, 2025, compared to $106.0 million for the same period in 2024 [273]. Risk Management - The company is subject to various market risks, including changes in market prices, interest rates, and currency rates [364]. - Proprietary risk management tools are utilized to manage market risk continuously, with alerts for trading strategies generating revenues outside preset limits [367]. - The company utilizes derivative financial instruments for proprietary trading and risk management, with gains and losses included in trading income [372]. - The company employs daily hedging practices to mitigate the impact of foreign currency fluctuations on revenues [376]. - The company has entered into floating-to-fixed interest rate swap agreements to manage interest rate risk associated with long-term debt obligations [373]. - The company monitors counterparty credit exposures to limit potential losses from broker and clearing organization insolvencies [375]. Share Repurchase Program - The company repurchased approximately 51.6 million shares for approximately $1,330.0 million since the inception of the share repurchase program [333]. - The company has approximately $390.0 million remaining capacity for future purchases of shares under the share repurchase program as of March 31, 2025 [334]. Tax and Other Financial Information - Provision for income taxes was $34.1 million with an effective tax rate of 15.2% for the three months ended March 31, 2025, compared to $28.5 million and 20.4% for the same period in 2024 [291]. - Future payments under tax receivable agreements are expected to range from approximately $0.1 million to $22.1 million per year over the next 15 years, with total payments of $134.8 million made from February 2017 through March 2025 [298]. - The company recognized a gain of $5.7 million in Other Income due to the partial dedesignation of a cash flow hedge [312].