Virtusa (VRTU) Stock Rating Upgraded by Zacks Investment Research

Virtusa (NASDAQ:VRTU) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Saturday, January 13th. The brokerage presently has a $52.00 price target on the information technology services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 8.31% from the company’s previous close.

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. “

VRTU has been the subject of a number of other research reports. BidaskClub lowered shares of Virtusa from a “strong-buy” rating to a “buy” rating in a report on Saturday, December 30th. Cantor Fitzgerald reiterated a “buy” rating and issued a $37.00 price objective on shares of Virtusa in a report on Sunday, November 5th. Cowen reiterated a “buy” rating and issued a $37.00 price objective on shares of Virtusa in a report on Thursday, October 12th. Maxim Group upgraded shares of Virtusa from a “hold” rating to a “buy” rating and set a $51.00 price objective for the company in a report on Wednesday, November 8th. Finally, Barrington Research raised their price objective on shares of Virtusa to $52.00 and gave the company an “outperform” rating in a report on Thursday, November 9th. Two investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $49.25.

Virtusa (NASDAQ VRTU) traded up $0.48 during mid-day trading on Friday, hitting $48.01. 240,833 shares of the stock were exchanged, compared to its average volume of 131,564. The company has a market capitalization of $1,409.81, a PE ratio of 67.62, a P/E/G ratio of 2.31 and a beta of 1.72. The company has a debt-to-equity ratio of 0.18, a current ratio of 4.03 and a quick ratio of 4.03. Virtusa has a 52-week low of $24.84 and a 52-week high of $48.71.

Virtusa (NASDAQ:VRTU) last posted its earnings results on Wednesday, November 8th. The information technology services provider reported $0.35 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.11. The firm had revenue of $248.20 million during the quarter, compared to analysts’ expectations of $237.48 million. Virtusa had a net margin of 2.54% and a return on equity of 4.86%. The business’s revenue for the quarter was up 18.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.27 earnings per share. sell-side analysts forecast that Virtusa will post 1.04 EPS for the current fiscal year.

In other news, insider Raj Rajgopal sold 14,025 shares of the firm’s stock in a transaction that occurred on Friday, November 10th. The shares were sold at an average price of $45.02, for a total transaction of $631,405.50. Following the completion of the sale, the insider now owns 108,576 shares of the company’s stock, valued at approximately $4,888,091.52. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Kris A. Canekeratne sold 12,000 shares of the firm’s stock in a transaction that occurred on Friday, January 19th. The stock was sold at an average price of $47.70, for a total transaction of $572,400.00. Following the sale, the chief executive officer now directly owns 541,491 shares of the company’s stock, valued at approximately $25,829,120.70. The disclosure for this sale can be found here. Insiders have sold a total of 89,580 shares of company stock valued at $4,095,604 in the last three months. Insiders own 5.96% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. Ameriprise Financial Inc. grew its position in shares of Virtusa by 0.5% during the 2nd quarter. Ameriprise Financial Inc. now owns 146,502 shares of the information technology services provider’s stock worth $4,307,000 after buying an additional 705 shares during the period. American International Group Inc. grew its position in shares of Virtusa by 5.5% during the 3rd quarter. American International Group Inc. now owns 21,860 shares of the information technology services provider’s stock worth $826,000 after buying an additional 1,131 shares during the period. Principal Financial Group Inc. grew its position in shares of Virtusa by 0.6% during the 2nd quarter. Principal Financial Group Inc. now owns 210,762 shares of the information technology services provider’s stock worth $6,196,000 after buying an additional 1,275 shares during the period. Schwab Charles Investment Management Inc. grew its position in Virtusa by 1.1% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 118,351 shares of the information technology services provider’s stock valued at $3,480,000 after purchasing an additional 1,324 shares during the period. Finally, Rhumbline Advisers grew its position in Virtusa by 2.9% in the 2nd quarter. Rhumbline Advisers now owns 54,201 shares of the information technology services provider’s stock valued at $1,594,000 after purchasing an additional 1,523 shares during the period. 88.00% of the stock is owned by institutional investors.

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About Virtusa

Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services.

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