Virtu Financial Is Now A Viable Income Play

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About: Virtu Financial, Inc. (VIRT), Includes: CME, NDAQ
by: Edgar Torres H
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Edgar Torres H
Long/short equity, special situations, event-driven, momentum
Summary

In my view, VIRT's recent disappointing stock performance can be mostly attributed to a challenging 2019 and acquisition integration hurdles.

Nevertheless, I think the discount is now too steep to pass up, especially for income investors.

VIRT's CEO himself echoes this feeling. In my experience, this is typically a good buy signal, especially at a 5.77% dividend yield.

My valuation model for the stock suggests that the shares have a fair value of $22.22 and a potential upside of 32.7%.

All in all, I deem VIRT is now an exceedingly compelling and overlooked dividend stock at these levels.

Virtu Financial (VIRT) is a market-making firm that mostly profits from volatility and trading volumes. In a way, it's similar to stocks like the CME Group (CME) or the NASDAQ (