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TJMT Holdings Buys Shares of Virtu Financial

- By Kyle Ferguson

Insider TJMT Holdings LLC purchased 170,157 shares of Virtu Financial Inc. (VIRT) in five separate transactions between March 16 and April 7 for an average price of $15.95 per share.

TJMT Holdings now owns 761,210 shares of Virtu Financial.

Headquartered in New York, Virtu Financial is a holding company. It is a technology-enabled market maker and liquidity provider to the financial markets across the world. It is engaged in buying or selling a range of securities and other financial instruments and earning small bid/ask spreads across various transactions.

It handles privately held companies that include Madison Tyler, Madison Tyler Trading, Madison Tyler Energy and Commodities and EWT.


Virtu Financial has a market cap of $2.38 billion, an enterprise value of $3.18 billion, a price-earnings (P/E) ratio of 19.13, a price-book (P/B) ratio of 14.95, and a price-sales (P/S) ratio of 14.95.

According to GuruFocus, the company has a 5 of 10 financial strength rating with a cash-debt ratio of 0.31 and an equity-asset ratio of 0.04. It has an interest coverage ratio of 2.12. The Beneish M-Score of -2.79 suggests it is not a manipulator of its financial statements.

The company has a 4 of 10 profitability and growth rating. It has an operating margin of 29.09%, a net margin of 5.34%, a return on assets (ROA) of 0.86% and a return on equity (ROE) of 23.72% ranking it higher than 88% of the companies in the Global Capital Markets industry.

Over the previous five years Virtu Financial has averaged a 2.81% increase in revenue, a 52.43% in gross margin and a 77.99% increase in cash flow.

It is noteworthy that gurus Paul Tudor Jones (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) added to their stakes in Virtu Financial during the fourth quarter. Since then the company's market price has gained an estimated 10%.

Below is a Peter Lynch chart that shows Virtu Financial is trading below its intrinsic value

Disclosure: Author does not own any shares of this company.

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This article first appeared on GuruFocus.