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].

Virtu Financial, Inc. (VIRT) , a prominent name in the financial services space, is under scrutiny as analysts trim their earnings projections for 2025 and 2026. While the company extended its streak of earnings beat in the first quarter, sentiment has weakened due to downward revisions in forward estimates.The Zacks Consensus Estimate for Virtu Financial’s 2025 and 2026 adjusted earnings now stands at $3.97 and $3.83 per share, respectively, reflecting week-over-week declines of 0.5% and 1%. Though 2025 es ...

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].