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

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 research analysts also recently issued reports on the company. Cantor Fitzgerald reiterated an “overweight” rating and set a $56.00 price objective (down from $62.00) on shares of Virtusa in a research note on Thursday, May 16th. TheStreet downgraded Virtusa from a “b-” rating to a “c+” rating in a research note on Wednesday, May 29th. Needham & Company LLC downgraded Virtusa from a “strong-buy” rating to a “buy” rating and cut their price objective for the company from $50.00 to $48.00 in a research note on Tuesday. Wedbush reiterated 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. Finally, Barrington Research reissued an “outperform” rating and issued a $60.00 price target (down from $64.00) on shares of Virtusa in a report on Monday, August 12th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and six have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $54.17.

Shares of NASDAQ:VRTU traded down $0.31 during mid-day trading on Friday, reaching $39.94. 11,654 shares of the company traded hands, compared to its average volume of 263,176. The company’s 50 day moving average price is $38.87 and its 200-day moving average price is $46.34. The firm has a market cap of $1.24 billion, a PE ratio of 27.36, a PEG ratio of 1.18 and a beta of 1.20. The company has a debt-to-equity ratio of 0.99, a current ratio of 2.58 and a quick ratio of 2.58. Virtusa has a 52 week low of $31.99 and a 52 week high of $58.60.

Virtusa (NASDAQ:VRTU) last announced its quarterly earnings data on Thursday, August 8th. The information technology services provider reported $0.41 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.01. The company 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 previous year, the company posted $0.50 EPS. On average, research analysts predict that Virtusa will post 1.93 earnings per share for the current fiscal year.

In other news, insider Samir Dhir sold 4,000 shares of the company’s stock in a transaction that occurred on Friday, August 30th. The stock was sold at an average price of $35.91, for a total transaction of $143,640.00. Following the sale, the insider now directly owns 157,780 shares of the company’s stock, valued at approximately $5,665,879.80. 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 15,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $36.57, for a total value of $548,550.00. Following the sale, the chief executive officer now directly owns 706,748 shares in the company, valued at $25,845,774.36. The disclosure for this sale can be found here. Insiders have sold a total of 26,500 shares of company stock worth $1,024,515 over the last ninety days. Insiders own 4.73% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Tower Research Capital LLC TRC increased its position in shares of Virtusa by 1,640.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 644 shares of the information technology services provider’s stock valued at $29,000 after purchasing an additional 607 shares during the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. bought a new position in Virtusa in the 2nd quarter valued at $42,000. Financial Gravity Wealth Inc. bought a new position in Virtusa in the 2nd quarter valued at $56,000. Oppenheimer Asset Management Inc. grew its position in Virtusa by 35.3% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 1,495 shares of the information technology services provider’s stock valued at $66,000 after acquiring an additional 390 shares during the last quarter. Finally, Quantamental Technologies LLC bought a new position in Virtusa in the 2nd quarter valued at $79,000. 88.27% of the stock is currently owned by hedge funds and other institutional investors.

Virtusa Company Profile

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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