Zacks Investment Research Upgrades Virtusa (NASDAQ:VRTU) to “Hold”

Virtusa (NASDAQ:VRTU) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Friday, Zacks.com reports.

According to Zacks, “Virtusa Corporation is a global provider of information technology (IT) consulting and outsourcing services that accelerate business outcomes for Global 2000 companies and leading software vendors in banking and financial services, insurance, healthcare, telecommunications, technology, and media & entertainment. The company also provides technology implementation services, such as application development, software product engineering. In addition, it offers application outsourcing services, such as the application maintenance and support, maintenance and enhancement of applications, and cloud-environment management and support; managed infrastructure services, and remote application monitoring and support; Virtusa delivers services across the IT lifecycle, including consulting, solution design, technology selection, implementation, testing, and maintenance, including infrastructure support. The company was formerly known as eRunway, Inc. and changed its name to Virtusa Corporation. “

A number of other analysts have also recently weighed in on VRTU. TheStreet cut shares of Virtusa from a “b-” rating to a “c+” rating in a research note on Wednesday, May 29th. BidaskClub cut shares of Virtusa from a “buy” rating to a “hold” rating in a research note on Wednesday. ValuEngine cut shares of Virtusa from a “buy” rating to a “hold” rating in a research note on Saturday, August 10th. Barrington Research reaffirmed a “buy” rating and set a $60.00 target price on shares of Virtusa in a research note on Tuesday. Finally, Needham & Company LLC lowered shares of Virtusa from a “strong-buy” rating to a “buy” rating and cut their price target for the stock from $50.00 to $48.00 in a report on Tuesday, September 10th. Three investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Virtusa currently has an average rating of “Buy” and a consensus target price of $54.17.

Shares of NASDAQ VRTU traded up $0.28 during midday trading on Friday, reaching $39.29. 1,929 shares of the company were exchanged, compared to its average volume of 244,980. The stock’s 50-day moving average price is $38.01 and its 200-day moving average price is $45.95. The stock has a market cap of $1.19 billion, a P/E ratio of 26.86, a PEG ratio of 1.13 and a beta of 1.20. Virtusa has a one year low of $31.99 and a one year high of $57.00. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.99.

Virtusa (NASDAQ:VRTU) last posted its earnings results on Thursday, August 8th. The information technology services provider reported $0.41 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.01. The firm had revenue of $319.00 million for the quarter, compared to analysts’ expectations of $317.59 million. Virtusa had a net margin of 2.23% and a return on equity of 11.67%. The company’s revenue was up 6.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.50 earnings per share. On average, equities research analysts anticipate that Virtusa will post 1.93 EPS for the current year.

In other news, CEO Kris A. Canekeratne sold 7,500 shares of Virtusa stock in a transaction on Monday, July 1st. The shares were sold at an average price of $44.31, for a total transaction of $332,325.00. Following the transaction, the chief executive officer now owns 723,926 shares in the company, valued at $32,077,161.06. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Kris A. Canekeratne sold 15,000 shares of Virtusa stock in a transaction on Wednesday, September 4th. The stock was sold at an average price of $36.57, for a total transaction of $548,550.00. Following the transaction, the chief executive officer now owns 706,748 shares in the company, valued at approximately $25,845,774.36. The disclosure for this sale can be found here. In the last quarter, insiders have sold 26,500 shares of company stock worth $1,024,515. 4.73% of the stock is owned by company insiders.

A number of hedge funds have recently added to or reduced their stakes in VRTU. Tower Research Capital LLC TRC lifted its holdings in Virtusa by 1,640.5% in the second quarter. Tower Research Capital LLC TRC now owns 644 shares of the information technology services provider’s stock valued at $29,000 after buying an additional 607 shares during the period. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. acquired a new position in Virtusa in the second quarter valued at $42,000. Financial Gravity Wealth Inc. acquired a new position in Virtusa in the second quarter valued at $56,000. Oppenheimer Asset Management Inc. lifted its holdings in Virtusa by 35.3% in the second quarter. Oppenheimer Asset Management Inc. now owns 1,495 shares of the information technology services provider’s stock valued at $66,000 after buying an additional 390 shares during the period. Finally, Quantamental Technologies LLC acquired a new position in Virtusa in the second quarter valued at $79,000. Institutional investors and hedge funds own 88.24% of the company’s stock.

About Virtusa

Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services worldwide. The company offers business and IT consulting services, including advisory/target operating model, business process re-engineering/business management, transformational solution consulting, and business/technology alignment analysis; omni-channel digital strategy, experience design accelerated solution design, and employee engagement; and application portfolio rationalization, SDLC transformation, and BA competency transformation services.

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