Todays Report: The Zacks Investment Research Upgrades Virtusa Corp. (VRTU) to “Hold”

The Zacks Investment Research Upgrades Virtusa Corp. (VRTU) to “Hold”

Zacks Investment Research upgraded shares of Virtusa Corp. (NASDAQ:VRTU) from a strong sell rating to a hold rating in a research report sent to investors on Wednesday morning.

According to Zacks, “Virtusa Corporation is a global information technology services company providing IT consulting, technology implementation and application outsourcing services. Using its enhanced global delivery model, innovative platforming approach and industry expertise, Virtusa provides cost-effective services that enable its clients to use IT to enhance business performance, accelerate time-to-market, increase productivity and improve customer service. “

Several other brokerages have also recently weighed in on VRTU. Cantor Fitzgerald set a $28.00 price target on shares of Virtusa Corp. and gave the stock a buy rating in a research note on Sunday, September 11th. TheStreet cut shares of Virtusa Corp. from a buy rating to a hold rating in a research note on Monday, August 15th. Maxim Group reaffirmed a buy rating and set a $42.00 price target (down from $46.00) on shares of Virtusa Corp. in a research note on Wednesday, June 29th. Wedbush initiated coverage on shares of Virtusa Corp. in a research note on Thursday, September 8th. They set a neutral rating and a $29.00 price target for the company. Finally, Needham & Company LLC reaffirmed a buy rating and set a $32.00 price target (down from $45.00) on shares of Virtusa Corp. in a research note on Thursday, August 11th. Five analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Virtusa Corp. presently has an average rating of Buy and a consensus target price of $38.22.

Virtusa Corp. (NASDAQ:VRTU) opened at 21.98 on Wednesday. The company’s 50-day moving average is $24.49 and its 200 day moving average is $29.66. Virtusa Corp. has a 1-year low of $20.74 and a 1-year high of $59.40. The firm has a market capitalization of $656.52 million, a PE ratio of 23.19 and a beta of 1.42.

Virtusa Corp. (NASDAQ:VRTU) last announced its earnings results on Tuesday, August 9th. The company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.16 by $0.02. The firm had revenue of $205.50 million for the quarter, compared to the consensus estimate of $203.82 million. Virtusa Corp. had a net margin of 4.24% and a return on equity of 7.38%. The business’s quarterly revenue was up 52.4% on a year-over-year basis. During the same period last year, the company posted $0.48 EPS. On average, equities analysts expect that Virtusa Corp. will post $1.63 EPS for the current fiscal year.

In other Virtusa Corp. news, CEO Kris A. Canekeratne sold 24,000 shares of Virtusa Corp. stock in a transaction on Friday, September 9th. The shares were sold at an average price of $26.01, for a total transaction of $624,240.00. Following the completion of the transaction, the chief executive officer now directly owns 826,133 shares of the company’s stock, valued at $21,487,719.33. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Ronald T. Maheu sold 3,423 shares of Virtusa Corp. stock in a transaction on Monday, September 12th. The stock was sold at an average price of $26.25, for a total transaction of $89,853.75. Following the transaction, the director now directly owns 40,533 shares of the company’s stock, valued at $1,063,991.25. The disclosure for this sale can be found here. Company insiders own 9.92% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the company. Louisiana State Employees Retirement System boosted its position in Virtusa Corp. by 0.8% in the second quarter. Louisiana State Employees Retirement System now owns 12,100 shares of the company’s stock worth $349,000 after buying an additional 100 shares during the period. PineBridge Investments L.P. boosted its position in Virtusa Corp. by 4.2% in the second quarter. PineBridge Investments L.P. now owns 3,454 shares of the company’s stock worth $100,000 after buying an additional 139 shares during the period. State Board of Administration of Florida Retirement System boosted its position in Virtusa Corp. by 1.1% in the second quarter. State Board of Administration of Florida Retirement System now owns 22,329 shares of the company’s stock worth $645,000 after buying an additional 251 shares during the period. Arizona State Retirement System boosted its position in Virtusa Corp. by 2.2% in the second quarter. Arizona State Retirement System now owns 14,155 shares of the company’s stock worth $409,000 after buying an additional 300 shares during the period. Finally, Teacher Retirement System of Texas boosted its position in Virtusa Corp. by 13.9% in the second quarter. Teacher Retirement System of Texas now owns 3,961 shares of the company’s stock worth $114,000 after buying an additional 482 shares during the period. 85.76% of the stock is owned by hedge funds and other institutional investors.

Virtusa Corp. 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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