Virtusa Corporation (VRTU) to Repurchase $30.00 million in Stock
Virtusa Corporation (NASDAQ:VRTU) announced that its board has initiated a stock buyback program, which authorizes the company to repurchase $30.00 million in outstanding shares on Wednesday, May 3rd, EventVestor reports. This repurchase authorization authorizes the information technology services provider to repurchase up to 3.3% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board believes its shares are undervalued.
Several equities research analysts recently issued reports on VRTU shares. Maxim Group cut shares of Virtusa Corporation from a “buy” rating to a “hold” rating in a research report on Thursday, March 9th. Barrington Research set a $35.00 price target on shares of Virtusa Corporation and gave the company a “buy” rating in a research report on Thursday, May 25th. Cowen and Company raised shares of Virtusa Corporation from a “market perform” rating to an “outperform” rating and set a $38.00 price target on the stock in a research report on Friday, March 24th. SunTrust Banks, Inc. set a $32.00 price target on shares of Virtusa Corporation and gave the company a “buy” rating in a research report on Friday, May 19th. Finally, Zacks Investment Research raised shares of Virtusa Corporation from a “strong sell” rating to a “hold” rating in a research report on Wednesday, April 12th. Three investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The company presently has a consensus rating of “Buy” and an average target price of $34.43.
Virtusa Corporation (NASDAQ VRTU) traded down 0.10% during mid-day trading on Friday, hitting $29.87. 637,123 shares of the stock were exchanged. The stock has a market cap of $899.65 million, a price-to-earnings ratio of 76.59 and a beta of 1.60. The company has a 50 day moving average price of $29.62 and a 200 day moving average price of $28.39. Virtusa Corporation has a 52 week low of $18.03 and a 52 week high of $35.58.
Virtusa Corporation (NASDAQ:VRTU) last issued its earnings results on Tuesday, May 16th. The information technology services provider reported $0.43 EPS for the quarter, missing analysts’ consensus estimates of $0.45 by $0.02. The firm had revenue of $226 million during the quarter, compared to analyst estimates of $226.67 million. Virtusa Corporation had a net margin of 1.38% and a return on equity of 3.50%. The business’s revenue for the quarter was up 31.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.55 earnings per share. Analysts expect that Virtusa Corporation will post $1.53 EPS for the current fiscal year.
In related news, EVP Thomas R. Holler sold 29,873 shares of the company’s stock in a transaction on Friday, May 19th. The stock was sold at an average price of $28.00, for a total value of $836,444.00. Following the completion of the transaction, the executive vice president now directly owns 45,716 shares in the company, valued at $1,280,048. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Kris A. Canekeratne sold 26,000 shares of the company’s stock in a transaction on Monday, June 12th. The shares were sold at an average price of $28.63, for a total value of $744,380.00. Following the completion of the transaction, the chief executive officer now owns 619,920 shares of the company’s stock, valued at $17,748,309.60. The disclosure for this sale can be found here. Insiders sold 154,115 shares of company stock valued at $4,414,506 over the last 90 days. 9.92% of the stock is currently owned by corporate insiders.
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About Virtusa Corporation
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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