Is VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) following the Minervini trend for explosive growth?

In this article we will dive into VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed VIRTU FINANCIAL INC-CLASS A showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

VIRT passes the Minervini Trend Template check!

VIRT checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Assessing Growth for VIRT

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. VIRT has achieved a 7 out of 10:

Earnings Momentum

• In the most recent financial report, VIRT reported a 322.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The earnings per share (EPS) growth of VIRT is accelerating: the current Q2Q growth of 322.0% is above the previous quarter Q2Q growth of 82.22%. Earnings momentum and acceleration are key for high growth systems.
• VIRT has experienced 93.99% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• VIRT has demonstrated strong q2q revenue growth of 104.0%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• Accelerating Sales growth for VIRT: the current Q2Q growth of 104.0% exceeds the previous quarter Q2Q growth of 12.16%.
• With notable 1-year revenue growth of 25.44%, VIRT exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• VIRT has seen a 41.17% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• VIRT has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Profitability & Financial Strength

• The operating margin of VIRT has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With positive growth in its profit margin over the past year, VIRT showcases its ability to improve profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, VIRT demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• VIRT has achieved an impressive Return on Equity (ROE) of 20.76%, showcasing its ability to generate favorable returns for shareholders.

Market Strength & Institutional Confidence

• The ownership composition of VIRT reflects a balanced investor ecosystem, with institutional shareholders owning 89.44%. This indicates a broader market participation and potential for increased trading liquidity.
• The Relative Strength (RS) of VIRT has been consistently solid, with a current 96.09 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How do we evaluate the setup for VIRT?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. VIRT scores a 4 out of 10:

VIRT has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

For an up to date full technical analysis you can check the technical report of VIRT

More like this

It looks like VIRTU FINANCIAL INC-CLASS A meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.