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On Thursday, Citi analyst Chris Allen increased the price target for Virtu Financial (NASDAQ:VIRT) shares to $48 from the previous $45 while maintaining a Buy rating on the stock. The adjustment came in response to Virtu Financial’s impressive first quarter performance, which saw the company’s stock rise approximately 1.4%. The company’s strong momentum is evident in its remarkable 84.8% return over the past year and 28.4% gain in the last six months. According to InvestingPro analysis, the stock currently trades at an attractive P/E ratio of 11.2x, with several positive indicators suggesting further upside potential.
Allen noted that Virtu Financial experienced robust market-making activity during the quarter, with a strong performance evenly distributed between customer and non-customer segments. The current environment at the onset of the second quarter appears to be even more favorable. Additionally, Virtu Financial has emphasized the durability of retail activity amidst heightened volatility and the growth of its execution services business, which is on track to reach $2 million in daily revenues. InvestingPro data reveals the company has maintained consistent dividend payments for 11 consecutive years, with a current yield of 2.45%, demonstrating strong financial stability. The company’s revenue grew by 43.1% in the last twelve months, supporting its market position.
The analyst highlighted the company’s efficient expense management and positive revenue prospects in the near term, suggesting that stock buybacks could increase from their already substantial levels in the upcoming quarters. In the long term, Virtu Financial is actively pursuing various growth opportunities, including ventures into cryptocurrencies, blockchain ETFs, and fixed income, currencies, and commodities (FICC) markets.
Allen’s commentary reflects a positive outlook on Virtu Financial, citing both offensive and defensive strengths. The company’s potential for operating leverage and its status as a beneficiary of market volatility, combined with a proactive approach to capital return, contribute to Citi’s continued endorsement of the stock with a Buy rating. InvestingPro analysis suggests the stock is currently undervalued, with additional ProTips and comprehensive analysis available through the Pro Research Report, which provides deep-dive analysis of what really matters for over 1,400 top US stocks.
In other recent news, Virtu Financial Inc . reported impressive financial results for the first quarter of 2025, surpassing Wall Street’s expectations. The company achieved an earnings per share (EPS) of $1.30, significantly higher than the anticipated $1.06. Revenue also exceeded forecasts, reaching $837.9 million compared to the projected $444.36 million. Virtu Financial’s strategic expansion into digital assets and fixed income markets has bolstered its competitive position. Additionally, the company has repurchased 1.3 million shares, amounting to $1.4 billion in buybacks to date. Analysts have noted Virtu’s robust performance, with its market-making and execution services contributing significantly to its financial success. The company’s management remains optimistic about future growth, particularly in Virtu Execution Services, targeting $2 million per day. These developments reflect Virtu Financial’s strong market presence and strategic initiatives in the evolving financial landscape.
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