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Virtus Investment Partners
(NYSE:VRTS)
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Rating:64Neutral
Price Target:
$158.00
▲(13.03% Upside)
Action:Reiterated
Date:06/27/26
The score is held back primarily by weakened cash flow (negative operating and free cash flow) and earnings-call headwinds tied to sizable net outflows and declining AUM. Offsetting these risks, the stock screens attractively on valuation (low P/E and high dividend yield) and has moderately supportive near-term technical positioning despite mixed momentum signals.
Positive Factors
Profitability / Margin Sustainability
Virtus reports mid‑teens net margins and consistently strong operating profitability, indicating the core fee model converts revenue to profit efficiently. Durable margins provide a buffer against revenue cyclicality and support funding for dividends, buybacks, and strategic investments over the medium term.
Negative Factors
Deteriorating Cash Generation
Negative operating and free cash flow in the trailing twelve months and 2025 mark a clear deterioration in cash conversion versus prior years. Persistent weak cash generation reduces financial flexibility, pressures the ability to self‑fund investments or buybacks, and raises reliance on financing or asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability / Margin Sustainability
Virtus reports mid‑teens net margins and consistently strong operating profitability, indicating the core fee model converts revenue to profit efficiently. Durable margins provide a buffer against revenue cyclicality and support funding for dividends, buybacks, and strategic investments over the medium term.
Read all positive factors
Virtus Investment Partners (VRTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend Yield5.41%
Average Volume (3M)111.38K
Price to Earnings (P/E)8.8
Beta (1Y)0.94
Revenue Growth-6.49%
EPS Growth0.51%
CountryUS
Employees805
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)17.22
Shares Outstanding6,682,122
10 Day Avg. Volume115,949
30 Day Avg. Volume111,378
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.19
Price to Sales (P/S)1.34
P/FCF Ratio-15.04
Enterprise Value/Market Cap3.62
Enterprise Value/Revenue4.58
Enterprise Value/Gross Profit5.67
Enterprise Value/Ebitda9.53
Forecast
1Y Price Target
$136.25Price Target Upside-2.53% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)24.68
Revenue Forecast (FY)$733.83M
Virtus Investment Partners Business Overview & Revenue Model
Company Description
Virtus Investment Partners, Inc., a publicly traded investment management firm, caters to both individual and institutional clients. The company develops tailored equity and fixed-income portfolios, alongside offering a diverse range of mutual fun...
How the Company Makes Money
Virtus primarily makes money by earning investment management and related fees calculated as a percentage of assets under management (AUM). The company’s core revenue stream is advisory and management fee revenue from its sponsored investment prod...
Virtus Investment Partners Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Negative
The call highlighted meaningful product and distribution progress—8% sales growth, strong ETF momentum, the strategic Keystone acquisition (adding $2.3B AUM and expanding alternatives/private credit), and signs of flow improvement in March/April. However, these positives were offset by substantial net outflows ($8.4B), a decline in AUM to $149B, sequential EPS and operating income pressure driven by seasonal employment expenses and lower average AUM, and higher short-term leverage/contingent liabilities related to the Keystone transaction. While management emphasized near-term improvements and long-term growth initiatives, the scale and persistence of outflows and AUM decline represent significant near-term headwinds.Positive Updates
Sales Growth
Total sales increased 8% to $5.8 billion (from $5.3 billion), led by a 26% increase in equity strategy sales and higher sales in U.S. retail funds, retail separate accounts, and global funds.
Negative Updates
Large Net Outflows and AUM Decline
Total net outflows were $8.4 billion for the quarter; assets under management fell to $149 billion at March 31 from $159 billion (≈$10 billion decline, roughly -6.3%), and average AUM declined 4% to $158.2 billion.
Read all updates
Q1-2026 Updates
Positive
Negative
Sales Growth
Total sales increased 8% to $5.8 billion (from $5.3 billion), led by a 26% increase in equity strategy sales and higher sales in U.S. retail funds, retail separate accounts, and global funds.
Read all positive updates
Company Guidance
Management’s forward-looking modeling assumptions included an expected average fee rate of about 43–45 basis points in Q2 (reflecting a full quarter of Keystone; Q1 included ~0.6 bps of incentive fees), employment expenses as adjusted of roughly 51%–53% of revenues (with the high end likely in Q2 due to seasonality), other operating expenses in a quarterly range of $31–$33 million (plus the incremental annual Board equity grant in Q2), noncontrolling interests of about $4–$5 million per quarter (factoring a full quarter of Keystone), and an effective tax rate of roughly 14%–15% beginning in Q2; they also noted Q1 carried $1.26 per share of seasonal employment expense and reported EPS as adjusted of $5.38.Virtus Investment Partners Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 799.77M | 830.59M | 902.82M | 841.49M | 881.72M | 974.67M |
| Gross Profit | 646.06M | 622.00M | 470.23M | 436.74M | 510.46M | 616.44M |
| EBITDA | 384.75M | 409.40M | 460.20M | 433.77M | 325.85M | 474.08M |
| Net Income | 116.87M | 138.40M | 121.75M | 130.62M | 117.54M | 208.13M |
Balance Sheet | ||||||
| Total Assets | 4.56B | 4.29B | 3.99B | 3.68B | 3.95B | 3.93B |
| Cash, Cash Equivalents and Short-Term Investments | 136.64M | 477.17M | 399.58M | 340.33M | 588.53M | 585.54M |
| Total Debt | 2.85B | 2.84B | 2.47B | 2.25B | 2.34B | 2.30B |
| Total Liabilities | 3.45B | 3.25B | 2.99B | 2.71B | 3.02B | 2.96B |
| Stockholders Equity | 917.40M | 934.04M | 897.49M | 863.93M | 817.02M | 828.30M |
Cash Flow | ||||||
| Free Cash Flow | -26.89M | -74.09M | -3.82M | 228.34M | 126.09M | 659.89M |
| Operating Cash Flow | -27.51M | -67.20M | 1.75M | 237.16M | 132.67M | 665.73M |
| Investing Cash Flow | -242.82M | -47.34M | -16.95M | -129.73M | -27.47M | -175.03M |
| Financing Cash Flow | 324.59M | 191.03M | 74.95M | -356.11M | -102.06M | -244.40M |
Virtus Investment Partners Technical Analysis
Positive
139.78
Price Trends
142.46
Positive
137.96
Positive
151.19
Positive
Market Momentum
1.03
Negative
60.86
Neutral
80.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTS, the sentiment is Positive. The current price of 139.78 is below the 20-day moving average (MA) of 143.72, below the 50-day MA of 142.46, and below the 200-day MA of 151.19, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 80.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRTS.
Virtus Investment Partners Risk Analysis
Virtus Investment Partners disclosed 19 risk factors in its most recent earnings report. Virtus Investment Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Virtus Investment Partners Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.30B | 10.84 | 33.93% | 2.46% | 12.27% | 45.13% | |
75 Outperform | $9.10B | 12.73 | 23.38% | 0.01% | 4.59% | 88.44% | |
73 Outperform | $3.40B | 11.17 | 21.99% | 8.93% | ― | -12.21% | |
72 Outperform | $649.27M | 12.46 | 22.87% | 4.56% | 46.25% | 88.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.60B | 31.10 | 200.83% | 0.08% | 20.72% | -2.79% | |
64 Neutral | $1.01B | 8.78 | 12.75% | 5.41% | -6.49% | 0.51% |
* Financial Sector Average
VRTS
Virtus Investment Partners
151.64
-32.75
-17.76%
AMG
Affiliated Managers
344.60
143.91
71.71%
AB
AllianceBernstein
36.31
-1.78
-4.69%
FHI
Federated Hermes
56.60
12.23
27.56%
AAMI
Acadian Asset Management
73.09
35.25
93.16%
VINP
Vinci Partners Investments
9.91
0.86
9.49%
Virtus Investment Partners Corporate Events
Executive/Board ChangesShareholder Meetings
Virtus Shareholders Affirm Board, Auditors and Executive Pay
Positive
May 20, 2026
At its annual meeting of shareholders held on May 20, 2026, Virtus Investment Partners’ investors re‑elected all nominated directors to serve until the 2027 annual meeting or until successors are chosen, reinforcing continuity in the c...
Business Operations and StrategyFinancial Disclosures
Virtus Investment Partners Updates Non-GAAP Reporting Framework
Neutral
Apr 17, 2026
Virtus Investment Partners said it will revise certain non-GAAP financial measures beginning with its first-quarter 2026 results to include tax benefits realized from the amortization of goodwill and intangible assets, which had previously been ex...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.