Virtusa (VRTU) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Virtusa (NASDAQ:VRTU) from a buy rating to a hold rating in a report published on Sunday morning.

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 topic of a number of other reports. BidaskClub lowered Virtusa from a buy rating to a hold rating in a report on Wednesday, January 10th. Barrington Research lifted their target price on Virtusa to $52.00 and gave the stock an outperform rating in a report on Thursday, November 9th. SunTrust Banks reaffirmed a buy rating and set a $52.00 target price on shares of Virtusa in a report on Friday, November 10th. Cantor Fitzgerald reaffirmed a buy rating and set a $37.00 target price on shares of Virtusa in a report on Sunday, November 5th. Finally, Cowen reaffirmed a buy rating and set a $37.00 target price on shares of Virtusa in a report on Thursday, October 12th. Two analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. The stock presently has an average rating of Buy and an average price target of $49.25.

Shares of Virtusa (VRTU) traded up $0.48 on Friday, hitting $48.01. The stock had a trading volume of 240,800 shares, compared to its average volume of 177,900. The firm has a market capitalization of $1,380.00, a price-to-earnings ratio of 67.62, a price-to-earnings-growth 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 issued its quarterly earnings results on Wednesday, November 8th. The information technology services provider reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.11. The company had revenue of $248.20 million for the quarter, compared to analyst estimates of $237.48 million. Virtusa had a return on equity of 4.86% and a net margin of 2.54%. The company’s quarterly revenue was up 18.1% compared to the same quarter last year. During the same period last year, the company earned $0.27 earnings per share. research analysts expect that Virtusa will post 1.04 earnings per share for the current fiscal year.

In related news, CEO Kris A. Canekeratne sold 12,000 shares of Virtusa stock in a transaction dated Friday, January 19th. The stock was sold at an average price of $47.70, for a total value of $572,400.00. Following the transaction, the chief executive officer now owns 541,491 shares of the company’s stock, valued at approximately $25,829,120.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Kris A. Canekeratne sold 10,000 shares of Virtusa stock in a transaction dated Thursday, January 4th. The stock was sold at an average price of $45.06, for a total value of $450,600.00. Following the completion of the transaction, the chief executive officer now directly owns 559,491 shares in the company, valued at approximately $25,210,664.46. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 89,580 shares of company stock worth $4,095,604. 5.96% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Fox Run Management L.L.C. purchased a new position in Virtusa in the 4th quarter worth about $576,000. Acadian Asset Management LLC acquired a new stake in Virtusa during the 4th quarter worth about $1,250,000. Schwab Charles Investment Management Inc. boosted its position in Virtusa by 6.5% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 134,348 shares of the information technology services provider’s stock worth $5,923,000 after acquiring an additional 8,185 shares during the period. Bank of Montreal Can boosted its position in Virtusa by 5,546.1% during the 4th quarter. Bank of Montreal Can now owns 22,189 shares of the information technology services provider’s stock worth $978,000 after acquiring an additional 21,796 shares during the period. Finally, Thomson Horstmann & Bryant Inc. boosted its position in Virtusa by 16.9% during the 4th quarter. Thomson Horstmann & Bryant Inc. now owns 31,100 shares of the information technology services provider’s stock worth $1,370,000 after acquiring an additional 4,486 shares during the period. 87.87% of the stock is currently owned by hedge funds and other 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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