Virtusa (NASDAQ:VRTU) Lowered to Hold at Zacks Investment Research

Virtusa (NASDAQ:VRTU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Sunday, January 21st.

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 several other research reports. BidaskClub lowered Virtusa from a “buy” rating to a “hold” rating in a report on Wednesday, January 10th. Barrington Research boosted their price objective on Virtusa to $52.00 and gave the company an “outperform” rating in a research report on Thursday, November 9th. SunTrust Banks restated a “buy” rating and issued a $52.00 price objective on shares of Virtusa in a research report on Friday, November 10th. Cantor Fitzgerald reiterated a “buy” rating and issued a $37.00 target price on shares of Virtusa in a research report on Sunday, November 5th. Finally, Cowen reiterated a “buy” rating and issued a $37.00 target price on shares of Virtusa in a research report on Thursday, October 12th. One analyst has rated the stock with a hold rating and nine have issued a buy rating to the company. Virtusa presently has a consensus rating of “Buy” and an average price target of $50.63.

Virtusa (NASDAQ VRTU) traded up $1.01 during mid-day trading on Friday, hitting $47.75. The stock had a trading volume of 342,844 shares, compared to its average volume of 212,912. The company has a quick ratio of 4.24, a current ratio of 4.24 and a debt-to-equity ratio of 0.23. Virtusa has a 52-week low of $25.72 and a 52-week high of $48.71. The stock has a market capitalization of $1,400.00, a PE ratio of 265.72, a P/E/G ratio of 2.25 and a beta of 1.48.

Virtusa (NASDAQ:VRTU) last issued its quarterly earnings data on Thursday, February 8th. The information technology services provider reported $0.47 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.45 by $0.02. Virtusa had a return on equity of 4.93% and a net margin of 0.92%. The company had revenue of $263.80 million during the quarter, compared to analyst estimates of $259.81 million. During the same quarter in the previous year, the company posted $0.37 earnings per share. Virtusa’s revenue was up 21.5% compared to the same quarter last year. analysts expect that Virtusa will post 1.04 EPS for the current year.

In other Virtusa news, CEO Kris A. Canekeratne sold 10,000 shares of the stock in a transaction on Thursday, January 4th. The stock was sold at an average price of $45.06, for a total transaction of $450,600.00. Following the sale, the chief executive officer now owns 559,491 shares of the company’s stock, valued at approximately $25,210,664.46. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Kris A. Canekeratne sold 12,000 shares of the stock in a transaction on Friday, January 19th. The shares were sold at an average price of $47.70, for a total value of $572,400.00. Following the sale, the chief executive officer now 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. In the last ninety days, insiders have sold 65,555 shares of company stock worth $3,013,598. Insiders own 5.96% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of VRTU. Citigroup Inc. raised its stake in Virtusa by 14.4% in the 2nd quarter. Citigroup Inc. now owns 29,400 shares of the information technology services provider’s stock worth $864,000 after acquiring an additional 3,711 shares during the last quarter. Vanguard Group Inc. raised its stake in Virtusa by 6.1% in the 2nd quarter. Vanguard Group Inc. now owns 2,073,630 shares of the information technology services provider’s stock worth $60,964,000 after acquiring an additional 119,133 shares during the last quarter. State Street Corp raised its stake in Virtusa by 4.0% in the 2nd quarter. State Street Corp now owns 672,462 shares of the information technology services provider’s stock worth $19,774,000 after acquiring an additional 25,883 shares during the last quarter. Vaughan Nelson Investment Management L.P. raised its stake in Virtusa by 4.6% in the 3rd quarter. Vaughan Nelson Investment Management L.P. now owns 928,500 shares of the information technology services provider’s stock worth $35,078,000 after acquiring an additional 40,850 shares during the last quarter. Finally, Peregrine Capital Management LLC purchased a new position in Virtusa in the 3rd quarter worth $9,115,000. Hedge funds and other institutional investors own 86.50% of the company’s stock.

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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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