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Virtus Investment Partners
(NYSE:VRTS)
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Rating:66Neutral
Price Target:
$178.00
▲(7.45% Upside)
Action:Reiterated
Date:08/08/26
The score is held back primarily by weak recent cash generation (negative operating and free cash flow) and ongoing AUM/outflow pressure highlighted on the latest call. Offsetting these risks are a constructive technical uptrend and notably attractive valuation (low P/E and high dividend yield), while guidance/modeling implies stable expense and fee-rate expectations but does not fully resolve near-term flow headwinds.
Positive Factors
Strong Profitability
Sustained mid-teens net margins indicate durable earnings power for an asset manager. Healthy margins support the firm’s ability to fund dividends, repurchases and reinvest in distribution even if AUM is volatile, providing a structural cushion to revenue swings.
Negative Factors
Weak Cash Conversion
A persistent gap between reported net income and cash generation undermines balance-sheet flexibility. Negative operating/free cash flow limits capacity to service debt, fund distributions or invest in growth initiatives, making the firm more vulnerable to AUM volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Sustained mid-teens net margins indicate durable earnings power for an asset manager. Healthy margins support the firm’s ability to fund dividends, repurchases and reinvest in distribution even if AUM is volatile, providing a structural cushion to revenue swings.
Read all positive factors
Virtus Investment Partners (VRTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend Yield5.68%
Average Volume (3M)111.38K
Price to Earnings (P/E)9.5
Beta (1Y)0.92
Revenue Growth-5.17%
EPS Growth-14.45%
CountryUS
Employees801
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)17.83
Shares Outstanding6,622,690
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$146.00Price Target Upside-11.87% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)24.59
Revenue Forecast (FY)$744.64M
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:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Neutral
Balanced. The quarter showed meaningful progress in sales (notably institutional), strong ETF momentum (58% YoY AUM growth and $2B net flows over the past year), improved operating margin and EPS, diversified positive flows outside quality equities, and active capital management including debt reduction and buybacks. Offsetting those positives, total net outflows remain large at $5.6B, with redemptions concentrated in quality-oriented equity strategies that have faced a persistent style headwind; open-end fund sales and net flows were weak and a discrete noncash compensation charge introduced near-term volatility. Management highlighted early signs of quality strategy improvement but characterized them as preliminary.Positive Updates
Assets Under Management Growth
AUM of $152.2 billion at June 30, up ~2% from $149 billion primarily driven by market performance; average AUM $153.3 billion (down 3% sequentially).
Negative Updates
Large Net Outflows Persist
Total net outflows remained significant at $5.6 billion (improved from $8.4 billion prior quarter) — a material ongoing headwind to AUM and revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Assets Under Management Growth
AUM of $152.2 billion at June 30, up ~2% from $149 billion primarily driven by market performance; average AUM $153.3 billion (down 3% sequentially).
Read all positive updates
Company Guidance
Management gave specific modeling and capital guidance: AUM was $152.2B at June 30 (average AUM $153.3B), with Q2 investment management fees (adj) $164.8M and an average fee rate of 43.1 bps (≈1.2 bps incentive); total sales $6.1B (+5%) and total net outflows improved to $5.6B (from $8.4B); ETF AUM $5.8B (+$400M q/q) with ETF net flows +$300M; institutional sales $2.2B (best in ~3 years) and institutional net outflows -$700M (vs -$3.2B prior); open‑end sales $2.6B (-14%) and open‑end net outflows -$1.8B; fixed income ≈27% of AUM and alternatives+multi‑asset >28% (vs 21% a year ago). For expense and tax modeling they expect employment expense around 54% of revenue for Q3 (Q2 employment expense adj $102.1M; 55.6% of revenue or 53.5% excl a $3.8M discrete item), other operating expenses roughly $30–$32M/quarter (Q2 adj $31.9M), operating income adj $47.9M with an operating margin of 26.1% (28.2% excl discrete), and an effective tax rate of 13–14%. Capital and liquidity guidance: cash $176M, CLO/other investments $273M, $220M undrawn revolver capacity, gross debt $427M (net debt $251M, 0.9x EBITDA), repurchased ~70.1k shares for $10M, repaid $20M of the revolver and expect to repay the remaining $30M soon, and they anticipate issuing a new CLO this year (historically $300–$400M size with Virtus capital in the mid‑$20M to low‑$30M range); management also expects a modest decline in interest expense in Q3.Virtus Investment Partners Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
54
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 757.51M | 830.59M | 902.82M | 841.49M | 881.72M | 974.67M |
| Gross Profit | 647.61M | 622.00M | 470.23M | 436.74M | 510.46M | 616.44M |
| EBITDA | 247.55M | 409.40M | 460.20M | 433.77M | 325.85M | 474.08M |
| Net Income | 119.11M | 138.40M | 121.75M | 130.62M | 117.54M | 208.13M |
Balance Sheet | ||||||
| Total Assets | 4.54B | 4.29B | 3.99B | 3.68B | 3.95B | 3.93B |
| Cash, Cash Equivalents and Short-Term Investments | 285.85M | 477.17M | 399.58M | 340.33M | 588.53M | 585.54M |
| Total Debt | 2.82B | 2.84B | 2.47B | 2.25B | 2.34B | 2.30B |
| Total Liabilities | 3.38B | 3.25B | 2.99B | 2.71B | 3.02B | 2.96B |
| Stockholders Equity | 945.28M | 934.04M | 897.49M | 863.93M | 817.02M | 828.30M |
Cash Flow | ||||||
| Free Cash Flow | -45.01M | -74.09M | -3.82M | 228.34M | 126.09M | 659.89M |
| Operating Cash Flow | -45.84M | -67.20M | 1.75M | 237.16M | 132.67M | 665.73M |
| Investing Cash Flow | -243.13M | -47.34M | -16.95M | -129.73M | -27.47M | -175.03M |
| Financing Cash Flow | 333.12M | 191.03M | 74.95M | -356.11M | -102.06M | -244.40M |
Virtus Investment Partners Technical Analysis
Positive
165.66
Price Trends
154.03
Positive
145.03
Positive
146.90
Positive
Market Momentum
3.81
Positive
60.71
Neutral
80.06
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 165.66 is above the 20-day moving average (MA) of 164.57, above the 50-day MA of 154.03, and above the 200-day MA of 146.90, indicating a bullish trend. The MACD of 3.81 indicates Positive momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 80.06 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $4.79B | 11.79 | 34.06% | 2.42% | 15.25% | 19.43% | |
78 Outperform | $9.68B | 12.01 | 26.95% | 0.01% | 11.74% | 108.91% | |
75 Outperform | $3.41B | 10.84 | 25.41% | 9.17% | ― | 0.94% | |
72 Outperform | $624.37M | 7.77 | 22.87% | 6.58% | 37.63% | 47.35% | |
71 Outperform | $3.28B | 32.57 | 161.92% | 0.27% | 24.02% | 17.81% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.12B | 9.48 | 12.82% | 5.70% | -5.17% | -14.45% |
* Financial Sector Average
VRTS
Virtus Investment Partners
169.03
-11.86
-6.56%
AMG
Affiliated Managers
374.37
155.31
70.90%
AB
AllianceBernstein
36.65
-0.32
-0.87%
FHI
Federated Hermes
64.13
12.54
24.31%
AAMI
Acadian Asset Management
92.51
44.88
94.21%
VINP
Vinci Partners Investments
9.53
-0.10
-1.08%
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...
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.