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To own Virtus Investment Partners, you need to be comfortable backing an established, income-paying asset manager that looks cheap on earnings but faces pressure on revenue and fund flows. The recent launch of the Virtus Silvant Growth Opportunities ETF (VGRO) fits neatly into the existing multi-manager ETF push rather than rewriting the story on its own, and the muted share price reaction suggests the near‑term earnings impact is likely limited. The bigger short-term catalysts still revolve around overall asset levels, investment performance across flagship strategies, and how effectively Virtus broadens its ETF and alternatives lineup after a year of revenue softness and benchmark underperformance. On the risk side, a dividend that is not well covered by free cash flow, recent insider selling, and expectations of declining revenue remain key issues, only partially offset by product innovation like VGRO.
However, investors should also consider how vulnerable the dividend looks if business conditions soften further. Virtus Investment Partners' shares have been on the rise but are still potentially undervalued by 20%. Find out what it's worth.Explore 3 other fair value estimates on Virtus Investment Partners - why the stock might be worth as much as 26% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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