Virtusa (NASDAQ:VRTU) Raised to “Hold” at Zacks Investment Research
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. “
Other research analysts also recently issued reports about the company. TheStreet downgraded Virtusa from a b- rating to a c+ rating in a research note on Wednesday, May 29th. Wedbush restated an outperform rating and set a $60.00 price objective (down from $70.00) on shares of Virtusa in a research note on Thursday, May 16th. Cantor Fitzgerald reissued an overweight rating and issued a $56.00 price target (down previously from $62.00) on shares of Virtusa in a research note on Thursday, May 16th. ValuEngine cut Virtusa from a buy rating to a hold rating in a research note on Saturday, August 10th. Finally, Barrington Research reissued an outperform rating and issued a $60.00 price target (down previously from $64.00) on shares of Virtusa in a research note on Monday, August 12th. Three analysts have rated the stock with a hold rating, four have issued a buy rating and one has given a strong buy rating to the company. Virtusa presently has an average rating of Buy and an average target price of $56.17.
Virtusa (NASDAQ:VRTU) last issued its quarterly earnings data on Thursday, August 8th. The information technology services provider reported $0.41 EPS for the quarter, topping the Zacks’ consensus estimate of $0.40 by $0.01. The firm had revenue of $319.00 million during the quarter, compared to the consensus estimate of $317.59 million. Virtusa had a return on equity of 11.67% and a net margin of 2.23%. The firm’s revenue was up 6.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.50 EPS. As a group, research analysts anticipate that Virtusa will post 1.93 earnings per share for the current year.
In other news, CEO Kris A. Canekeratne sold 7,500 shares of the stock in a transaction on Monday, July 1st. The stock was sold at an average price of $44.31, for a total value of $332,325.00. Following the completion of the transaction, the chief executive officer now owns 723,926 shares of the company’s stock, valued at $32,077,161.06. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Joseph Doody purchased 5,000 shares of the firm’s stock in a transaction dated Friday, May 31st. The stock was acquired at an average cost of $42.50 per share, with a total value of $212,500.00. Following the purchase, the director now owns 14,684 shares of the company’s stock, valued at approximately $624,070. The disclosure for this purchase can be found here. Corporate insiders own 4.73% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. boosted its stake in Virtusa by 2.3% during the second quarter. BlackRock Inc. now owns 4,112,285 shares of the information technology services provider’s stock valued at $182,708,000 after buying an additional 93,202 shares in the last quarter. FMR LLC boosted its stake in Virtusa by 2.9% during the first quarter. FMR LLC now owns 2,991,604 shares of the information technology services provider’s stock valued at $159,901,000 after buying an additional 83,217 shares in the last quarter. Vanguard Group Inc. boosted its stake in Virtusa by 1.3% during the second quarter. Vanguard Group Inc. now owns 2,466,129 shares of the information technology services provider’s stock valued at $109,570,000 after buying an additional 30,982 shares in the last quarter. Frontier Capital Management Co. LLC boosted its stake in Virtusa by 0.8% during the first quarter. Frontier Capital Management Co. LLC now owns 1,049,396 shares of the information technology services provider’s stock valued at $56,090,000 after buying an additional 8,057 shares in the last quarter. Finally, FIL Ltd boosted its stake in Virtusa by 1.3% during the first quarter. FIL Ltd now owns 812,470 shares of the information technology services provider’s stock valued at $43,427,000 after buying an additional 10,100 shares in the last quarter. 87.65% of the stock is owned by institutional investors and hedge funds.
Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services worldwide. The company offers business and IT consulting services, including advisory/target operating model, business process re-engineering/business management, transformational solution consulting, and business/technology alignment analysis; omni-channel digital strategy, experience design accelerated solution design, and employee engagement; and application portfolio rationalization, SDLC transformation, and BA competency transformation services.
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