Key Takeaways
- VIRT stock fell 23.8% in six months, sharply lagging the S&P 500 and its broader industry.
- VIRT trades at just 8.70X forward earnings, with consensus forecasts calling for 41.7% EPS growth in 2025.
- VIRT is lifting margins and returning capital through dividends & buybacks, with $302.8M still authorized.
Shares of Virtu Financial, Inc. (VIRT – Free Report) have fallen 23.8% over the past six months, sharply lagging the 14.5% rise in the S&P 500 and even underperforming its broader industry, which declined 7.6% during the same period. The pullback reflects a mix of rising costs, expectations of softer retail trading activity, and growing uncertainty around market-making revenues.
The decline, however, is not isolated. Peer Tradeweb Markets Inc. (TW – Free Report) has dropped an even steeper 26.3%, while CME Group Inc. (CME – Free Report) has managed a modest 0.4% gain. With VIRT now trading well below recent highs, the key question is whether the stock is setting up for a rebound or remains a value trap.
Let’s dig deeper.
6-Month Price Performance – VIRT, TW, CME, Industry & S&P 500
Image Source: Zacks Investment Research
Valuation Looks Compelling After the Correction
At current levels, Virtu appears attractively valued. The stock trades at a forward P/E of 8.70X, below both its five-year median of 9.26X and the industry average of 23.82X. By comparison, Tradeweb trades at 28.17X forward earnings, while CME Group is at 23.85X.
This valuation gap suggests that much of the near-term risk is already priced in. For investors willing to tolerate cyclical swings in trading activity, the downside appears increasingly limited relative to potential upside.
Image Source: Zacks Investment Research
Forecasts Remain Supportive
Fundamentals also paint a steadier picture than the stock’s recent performance suggests. The Zacks Consensus Estimate indicates EPS growth of 41.7% in 2025, while revenues are expected to climb 25.9% to about $2.01 billion. Virtu has delivered consistently. The company has beaten earnings estimates in each of the past four quarters, with an average surprise of 15.6%. Improving commissions and stronger technology services revenues have underpinned this execution.
Growth Drivers
Virtu’s Execution Services segment continues to be a key growth engine. Products such as POSIT Alert, Triton Valor EMS, advanced trading analytics and proprietary execution algorithms are increasingly used by institutional clients to improve execution quality, manage complex orders, and lower transaction costs across global markets.
These offerings benefit directly from the ongoing electronification of markets and rising demand for sophisticated execution tools. Meanwhile, Virtu’s exposure to crypto-related trading adds optional upside during periods of heightened digital-asset activity. Its return on invested capital (ROIC) of 28.28% is significantly higher than the industry average of 5.55%.
Cost-control initiatives are translating into meaningful margin improvement. Virtu’s adjusted net margin rose to 35.9% in 2024 from 25.4% in 2023, and improved another 170 basis points year over year to 35.7% in the third quarter of 2025.
The stock offers a 2.8% dividend yield, above the industry average of 1.5%, and management remains committed to a quarterly dividend of 24 cents per share. Also, in 2023 and 2024, Virtu Financial bought back shares worth around $210 million and $172.2 million, respectively. In the third quarter of 2025 alone, it repurchased $20.9 million worth of shares. As of Sept. 30, 2025, it had around $302.8 million remaining under its share buyback authorization.
Analysts See Meaningful Upside
Virtu Financial trades below the average analyst price target of $43.14, implying a potential upside of 27.7%. The spread between the high target of $51 and the low target of $36 reflects different risk views, but the consensus direction remains positive.
Conclusion: A Buy for Patient Investors
After a sharp correction, Virtu Financial appears well-positioned for a rebound rather than a prolonged downturn. The stock’s selloff has left it trading at a clear valuation discount despite strong earnings execution, supportive growth forecasts, expanding margins, and disciplined capital returns. Its diversified trading model, growing execution services and high ROIC provide resilience even amid a softer period.
With consensus estimates pointing to robust EPS and revenue growth, a healthy dividend, ongoing share repurchases, and nearly 28% upside to the average analyst price target, the risk-reward profile now looks favorable. Backed by these fundamentals and improving profitability trends, Virtu Financial has a Zacks Rank #2 (Buy) at present, making it an attractive pick for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.