Virtu Financial Shares Rise Amid Activist Pressure

Investing.com — Shares of Virtu Financial (NASDAQ:VIRT) climbed 2% today following a public call from the Pulte Family Office, an activist shareholder, for the company to consider a sale. The Pulte Family, founders of PulteGroup (NYSE:PHM), expressed dissatisfaction with Virtu's current management and CEO Doug Cifu.

In a press release, William J. Pulte, Chairman of The Pulte Family Office, criticized Cifu for failing to focus on business expansion and engaging in non-core activities. The Pulte Family believes that Virtu could realize its full potential under new ownership, whether from a private equity firm or another public company. Their statement suggested that without a strategic change, a sale is likely, and the Pulte Family is ready to assist with this transition.

The dissatisfaction stems from previous attempts to work constructively with Virtu's management, which the Pulte Family considers unproductive. They have expressed a willingness to initiate a proxy contest or pursue other legal avenues if the company does not explore selling options. This pressure from a major shareholder has generated positive investor sentiment, as shown by the stock's rise during trading.

While the Pulte Family's release highlights these developments, it is crucial to note that Virtu Financial's Board of Directors has not yet acted on a potential sale. The market's reaction signals investor optimism about potential strategic changes that could boost shareholder value.

Shareholders and potential investors will be closely watching how Virtu Financial responds to the Pulte Family's call for strategic alternatives. The company has yet to publicly comment on the press release or any potential sale discussions.

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