Jefferies lowers Virtu Financial stock price target to $49 on volatility decline

Published 11/09/2025, 11:26
Jefferies lowers Virtu Financial stock price target to $49 on volatility decline

Investing.com - Jefferies lowered its price target on Virtu Financial (NASDAQ:VIRT) to $49.00 from $51.00 on Thursday, while maintaining a Buy rating on the $5.9 billion market cap stock. According to InvestingPro data, the stock appears undervalued, trading at an attractive P/E ratio of 8.67.

The price target reduction reflects Jefferies’ decreased third-quarter 2025 adjusted earnings per share estimate, which was lowered to $0.83 from $1.02.

The firm attributed the earnings forecast cut to the normalization of volatility trends that have continued throughout the third quarter of 2025 so far, with the third-quarter-to-date average VIX tracking 31% lower quarter-over-quarter.

Jefferies noted that while retail engagement has remained relatively positive in the third quarter of 2025, absolute levels of volatility as evidenced by the VIX and intraday volatility have been declining.

The firm specifically pointed out that the August intraday volatility metric was half of what was observed in the second quarter of 2025.

In other recent news, Virtu Financial Inc. reported its second-quarter 2025 earnings, which outperformed analysts’ expectations. The company achieved an earnings per share (EPS) of $1.53, surpassing the projected $1.40, marking a 9.29% positive surprise. Additionally, Virtu Financial’s actual revenue reached $999.6 million, significantly higher than the anticipated $517.93 million. These figures highlight the company’s strong financial performance during the quarter. Despite the impressive earnings and revenue results, the company’s stock price experienced a decline of 2.7% in pre-market trading. However, the focus remains on the robust earnings and revenue numbers that Virtu Financial delivered. Analysts had anticipated lower figures, making the reported results noteworthy. These developments provide investors with crucial insights into Virtu Financial’s recent financial standing.

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