Zacks Investment Research Downgrades Virtusa Corp. (VRTU) to Sell
Virtusa Corp. (NASDAQ:VRTU) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
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 research analysts also recently weighed in on the company. Needham & Company LLC dropped their price target on Virtusa Corp. from $32.00 to $24.00 and set a “buy” rating for the company in a research note on Thursday, November 10th. Maxim Group dropped their price target on Virtusa Corp. from $36.00 to $26.00 and set a “buy” rating for the company in a research note on Thursday, November 10th. Cantor Fitzgerald set a $28.00 price target on Virtusa Corp. and gave the stock a “buy” rating in a research note on Sunday, September 11th. Wedbush began coverage on Virtusa Corp. in a research note on Thursday, September 8th. They issued a “neutral” rating and a $29.00 price target for the company. Finally, TheStreet downgraded Virtusa Corp. from a “buy” rating to a “hold” rating in a research note on Monday, August 15th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and five have given a buy rating to the company’s stock. Virtusa Corp. has an average rating of “Hold” and a consensus price target of $36.00.
Virtusa Corp. (NASDAQ:VRTU) opened at 19.82 on Wednesday. The stock has a market capitalization of $593.85 million, a P/E ratio of 28.85 and a beta of 1.38. Virtusa Corp. has a 52 week low of $18.03 and a 52 week high of $49.98. The company has a 50 day moving average of $21.06 and a 200 day moving average of $26.98.
Virtusa Corp. (NASDAQ:VRTU) last released its earnings results on Wednesday, November 9th. The company reported $0.27 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.28 by $0.01. The firm earned $164.80 million during the quarter, compared to analysts’ expectations of $209.43 million. Virtusa Corp. had a return on equity of 5.34% and a net margin of 2.79%. The company’s revenue was up 46.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.50 earnings per share. Equities analysts expect that Virtusa Corp. will post $1.33 EPS for the current fiscal year.
In related news, Director Ronald T. Maheu sold 3,423 shares of the firm’s stock in a transaction on Monday, September 12th. The stock was sold at an average price of $26.25, for a total value of $89,853.75. Following the completion of the sale, the director now directly owns 40,533 shares in the company, valued at $1,063,991.25. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Kris A. Canekeratne sold 24,000 shares of the firm’s stock in a transaction on Friday, September 9th. The stock was sold at an average price of $26.01, for a total value of $624,240.00. Following the completion of the sale, the chief executive officer now owns 826,133 shares of the company’s stock, valued at $21,487,719.33. The disclosure for this sale can be found here. 9.92% of the stock is owned by corporate insiders.
A number of hedge funds have recently modified their holdings of the company. PineBridge Investments L.P. increased its stake in shares of 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 in the last quarter. Teacher Retirement System of Texas increased its stake in shares of 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 in the last quarter. Municipal Employees Retirement System of Michigan increased its stake in shares of Virtusa Corp. by 1.7% in the third quarter. Municipal Employees Retirement System of Michigan now owns 6,040 shares of the company’s stock worth $149,000 after buying an additional 100 shares in the last quarter. Mason Street Advisors LLC bought a new stake in shares of Virtusa Corp. during the second quarter worth about $154,000. Finally, Fifth Third Bancorp increased its stake in shares of Virtusa Corp. by 57.1% in the second quarter. Fifth Third Bancorp now owns 5,499 shares of the company’s stock worth $159,000 after buying an additional 1,998 shares in the last quarter. Institutional investors own 85.76% of the company’s stock.
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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