Virtu Financial Shares Rise Amid Pulte Family's Selling Pressure

Investing.com -- Virtu Financial (NASDAQ:VIRT) shares rose 2% today following activist shareholder Pulte Family Office's clear encouragement for the company to consider a sale. The Pulte Family, founders of PulteGroup, one of the largest home construction companies in the country, expressed their dissatisfaction with Virtu Financial's current management and CEO Doug Cifu.

William J. Pulte, Chairman of Pulte Family Office, criticized Cifu in a press release for not focusing on growing the business and spending his time on non-core activities. The Pulte Family suggested that Virtu Financial needs ownership that can unlock its true potential, which could come from either a third-party private equity firm or another public company. The statement implied that Virtu Financial should be sold if there is no change in direction and that the Pulte Family is prepared to assist in this transition.

The Pulte Family's dissatisfaction stems from their belief that attempts to work constructively with Virtu Financial management have been fruitless. They stated their readiness to initiate a proxy battle or take other necessary legal steps if the company does not explore the sale option. This pressure from a significant shareholder led to a positive reaction from investors, reflected in the rise of the stock price during the trading session.

While the Pulte Family's press release is the source of this development, it is important to note that Virtu Financial's Board of Directors has not yet taken any formal steps regarding a potential sale. The market's reaction indicates that investors are anticipating possible strategic changes that could enhance shareholder value.

As the situation develops, shareholders and potential investors will closely monitor Virtu Financial's response to the Pulte Family's call for strategic alternatives. The company has not yet provided an official response to the press release or commented on any potential sale discussions.