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Virtus Investment (VRTS) Stock Rises on Expanded Buyback Plan

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Virtus Investment Partners, Inc. (VRTS - Free Report)  shares climbed 1.4% in yesterday’s trading hours after the company announced an additional share repurchase authorization. The board of directors has approved the additional repurchase of 750,000 shares of VRTS’s outstanding common stock.

The buyback program, initiated in May 2013, has no specified term. In first-quarter 2022, the company repurchased 125,452 common shares for $30 million. As of Mar 31, 2022, it had 403,997 shares for repurchase.

Share buybacks aside, Virtus Investment has been regularly raising dividends (hiked its dividend four times in the last five years), with the most recent increase of 82.9% to $1.50 per share announced in December 2021. The company has continued the same dividend amount.

Along with the expansion of its share repurchase program, the company declared a second-quarter cash dividend of $1.50 per share.

The dividend will be paid out on Aug 15, 2022, to shareholders of record as of Jul 29, 2022.

Based on last day’s closing price of $177.44, the company’s dividend yield currently stands at 3.38%, which is impressive compared with the industry’s yield of 2.15%.

The company’s integrated multi-boutique business model might support its performance and capital deployment activities.

However, the Russia-Ukraine conflict has led to negative sentiments in the market, resulting in volatility and unfavorable returns. Notably, the companyrecorded a sequential decrease in its preliminary assets under management (“AUM”) balance for April 2022 due to unfavorable market returns. The total AUM of $170.9 billion reflects a 6.7% fall from $183.3 billion recorded as of Mar 31, 2022.

Virtus Investment stock's loss of 36.1% has been wider than the industry’s fall of 31% over the past year.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Currently, the company carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Finance Stocks That Took Similar Action

Piper Sandler Companies’ (PIPR - Free Report) board of directors approved the repurchase of up to $150 million worth of PIPR’s outstanding stock.

The buyback program, which is effective immediately and will expire on Dec 31, 2024, is in addition to the existing authorization. The current plan, announced in November 2021, became effective on Jan 1, 2022, and expires on Dec 31, 2023. Under this, PIPR is authorized to repurchase up to $150 million worth of shares and has roughly $43 million remaining as of May 6, 2022.

Capital One (COF - Free Report) has been meaningfully deploying capital to enhance shareholders’ value. In sync with this, the company announced additional share repurchase authorization worth $5 billion, effective from third-quarter 2022.

The authorization is in addition to the $5-billion buyback plan for this year, which was announced this January. COF repurchased shares worth $7.5 million in 2021.

Valley National Bancorp (VLY - Free Report) announced a new share repurchase plan. The company’s board of directors approved a stock repurchase program for up to 25 million shares of VLY. The authorization to repurchase will expire on Apr 25, 2024.

Valley National terminated its 2007 stock repurchase program.