Virtus Investment Partners (VRTS, Financial) has received a revised price target from Barclays analyst Benjamin Budish, who increased it slightly to $150 from the previous $149. Despite this upward adjustment, the analyst maintains an Underweight rating on the stock. This decision follows Virtus Investment's recent first-quarter report, which highlighted ongoing challenges in the company's flow profile. According to Budish, recent retail trends in April appear to align closely with the patterns observed towards the end of the first quarter. These factors contribute to the cautious stance on Virtus Investment's current market performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Virtus Investment Partners Inc (VRTS, Financial) is $167.75 with a high estimate of $211.00 and a low estimate of $149.00. The average target implies an upside of 9.44% from the current price of $153.28. More detailed estimate data can be found on the Virtus Investment Partners Inc (VRTS) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Virtus Investment Partners Inc's (VRTS, Financial) average brokerage recommendation is currently 3.3, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Virtus Investment Partners Inc (VRTS, Financial) in one year is $188.15, suggesting a upside of 22.75% from the current price of $153.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Virtus Investment Partners Inc (VRTS) Summary page.
VRTS Key Business Developments
Release Date: April 25, 2025
- Assets Under Management (AUM): $167.5 billion as of March 31st, 2025.
- Total Sales: $6.2 billion, compared to $6.4 billion in the previous quarter.
- Net Outflows: $3 billion, improved from $4.8 billion in the prior quarter.
- Earnings Per Share (EPS) as Adjusted: $5.73, a 6% increase year-over-year.
- Operating Margin as Adjusted: 32.7%, excluding seasonal employment expenses.
- Share Repurchases: $26 million used to repurchase approximately 146,000 shares.
- Revenue Participation Payment: $23 million, reducing contingent liability to $40 million.
- Investment Management Fees as Adjusted: $178.5 million, a 7% decrease due to lower average AUM.
- Employment Expenses as Adjusted: $109.4 million, increased 5% sequentially due to seasonal factors.
- Net Debt Position: $100 million, or 0.3 times EBITDA.
- Gross Debt to EBITDA: 0.7 times, unchanged from December 31st.
- Cash and Equivalents: $135.4 million as of March 31st.
- Seed Capital Investments: $143 million.
- Other Investments: $132.8 million, primarily in managed CLOs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Virtus Investment Partners Inc (VRTS, Financial) reported higher earnings per share compared to the prior year period.
- The company experienced increased sales in fixed income strategies across products.
- Positive net flows were recorded in ETFs, with an organic growth rate of 73% over the past year.
- Over 70% of equity strategies outperformed their benchmarks in the first quarter, showcasing strong investment performance.
- Virtus Investment Partners Inc (VRTS) was recognized by Barron's as the number two fund family for the 10-year period and third in the taxable bond category for 2024.
Negative Points
- The company faced market performance volatility, leading to lower assets under management and net outflows.
- Total net outflows were $3 billion, although improved from $4.8 billion in the previous quarter.
- Retail separate accounts experienced net outflows, largely due to the soft closing of a mid-cap core equity model offering.
- Open-end fund net outflows of $1.1 billion were unchanged sequentially, driven by equity strategies.
- The operating margin as adjusted decreased to 27.6% from 35.1% in the fourth quarter, impacted by seasonal employment expenses.
