Is VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) a Minervini-style stock?

Our stock screener has spotted VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Checking the Minervini Trend Template.

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)

Why we can consider VIRT a High Growth Stock.

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

• VIRT has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 71.05% increase. This indicates improving financial performance and the company's effective management of its operations.
• VIRT has achieved 121.0% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• VIRT has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 21.82%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• VIRT has demonstrated strong 1-year revenue growth of 25.45%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• Analysts' average next Quarter EPS Estimate for VIRT has witnessed a 15.81% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.
• With a track record of beating EPS estimates in the last 4 quarters, VIRT showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• VIRT has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• The profit margin of VIRT has seen steady growth over the past year, signaling improved profitability.
• VIRT has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• VIRT exhibits a strong Return on Equity (ROE) of 20.76%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.

Market Strength & Institutional Confidence

• With 89.44% of the total shares held by institutional investors, VIRT showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• The Relative Strength (RS) of VIRT has been consistently solid, with a current 96.55 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for VIRT is 3:

Although VIRT has an excellent technical rating, it does not present a decent entry opportunity 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.

Check the latest full technical report of VIRT for a complete technical analysis.

Concluding

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.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.