Zacks Investment Research Lowers Virtusa (VRTU) to Sell

Virtusa (NASDAQ:VRTU) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday.

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 commented on the stock. BidaskClub cut shares of Virtusa from a “buy” rating to a “hold” rating in a research note on Wednesday, January 10th. Barrington Research raised their target price on shares of Virtusa to $52.00 and gave the stock an “outperform” rating in a research note on Thursday, November 9th. SunTrust Banks restated a “buy” rating and set a $52.00 target price on shares of Virtusa in a research note on Friday, November 10th. Maxim Group set a $59.00 price target on shares of Virtusa and gave the stock a “buy” rating in a research report on Thursday, February 8th. Finally, Cantor Fitzgerald reaffirmed a “buy” rating and set a $37.00 price target on shares of Virtusa in a research report on Sunday, November 5th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and eight have given a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average target price of $50.63.

Shares of Virtusa (VRTU) traded down $0.23 on Thursday, reaching $49.33. 320,800 shares of the company traded hands, compared to its average volume of 216,233. Virtusa has a fifty-two week low of $25.72 and a fifty-two week high of $50.67. The firm has a market capitalization of $1,458.53, a PE ratio of 274.06, a price-to-earnings-growth ratio of 2.50 and a beta of 1.48. The company has a debt-to-equity ratio of 0.23, a current ratio of 4.24 and a quick ratio of 4.24.

Virtusa (NASDAQ:VRTU) last announced its earnings results 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 net margin of 0.92% and a return on equity of 4.93%. The business had revenue of $263.80 million during the quarter, compared to analysts’ expectations of $259.81 million. During the same quarter in the prior year, the company posted $0.37 earnings per share. The firm’s revenue was up 21.5% on a year-over-year basis. equities research analysts predict that Virtusa will post 0.99 EPS for the current year.

In other Virtusa news, insider Raj Rajgopal sold 4,025 shares of the firm’s stock in a transaction dated Tuesday, January 2nd. The shares were sold at an average price of $44.35, for a total value of $178,508.75. Following the transaction, the insider now directly owns 98,576 shares of the company’s stock, valued at approximately $4,371,845.60. The transaction was disclosed in a legal filing with the SEC, which is available 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 shares were sold at an average price of $47.70, for a total transaction of $572,400.00. Following the completion of the sale, the chief executive officer now owns 541,491 shares in the company, valued at $25,829,120.70. The disclosure for this sale can be found here. Over the last three months, insiders sold 67,580 shares of company stock worth $3,127,526. Insiders own 5.96% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. lifted its position in shares of Virtusa by 1.8% in the 4th quarter. BlackRock Inc. now owns 3,408,244 shares of the information technology services provider’s stock worth $150,234,000 after purchasing an additional 58,844 shares during the period. Vanguard Group Inc. increased its position in shares of Virtusa by 6.1% during the second quarter. Vanguard Group Inc. now owns 2,073,630 shares of the information technology services provider’s stock valued at $60,964,000 after buying an additional 119,133 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Virtusa by 4.9% during the third quarter. Dimensional Fund Advisors LP now owns 1,972,230 shares of the information technology services provider’s stock valued at $74,511,000 after buying an additional 92,126 shares during the period. Vaughan Nelson Investment Management L.P. increased its position in shares of Virtusa by 4.6% during the third quarter. Vaughan Nelson Investment Management L.P. now owns 928,500 shares of the information technology services provider’s stock valued at $35,078,000 after buying an additional 40,850 shares during the period. Finally, State Street Corp increased its position in shares of Virtusa by 4.0% during the second quarter. State Street Corp now owns 672,462 shares of the information technology services provider’s stock valued at $19,774,000 after buying an additional 25,883 shares during the period. Institutional investors own 84.55% of the company’s stock.

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Virtusa Company Profile

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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