Zacks Investment Research Downgrades Virtusa Corporation (VRTU) to Hold
Zacks Investment Research lowered shares of Virtusa Corporation (NASDAQ:VRTU) from a buy rating to a hold rating in a research note issued to investors on Tuesday 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 research firms also recently weighed in on VRTU. Maxim Group reaffirmed a hold rating on shares of Virtusa Corporation in a research note on Tuesday, August 8th. BidaskClub raised shares of Virtusa Corporation from a hold rating to a buy rating in a research note on Sunday, July 16th. Barrington Research set a $35.00 price target on shares of Virtusa Corporation and gave the company a buy rating in a research note on Thursday, May 25th. ValuEngine raised shares of Virtusa Corporation from a sell rating to a hold rating in a research note on Tuesday, June 27th. Finally, Cantor Fitzgerald reaffirmed a buy rating and issued a $37.00 price target on shares of Virtusa Corporation in a research note on Friday, August 11th. Three equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Virtusa Corporation presently has a consensus rating of Buy and a consensus price target of $37.00.
Virtusa Corporation (NASDAQ VRTU) opened at 36.27 on Tuesday. The company has a 50-day moving average of $32.85 and a 200-day moving average of $30.34. Virtusa Corporation has a 52 week low of $18.03 and a 52 week high of $37.66. The firm has a market capitalization of $1.06 billion, a price-to-earnings ratio of 52.49 and a beta of 1.71.
Virtusa Corporation (NASDAQ:VRTU) last posted its quarterly earnings results on Tuesday, August 8th. The information technology services provider reported $0.25 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.09. Virtusa Corporation had a net margin of 2.47% and a return on equity of 4.26%. The firm had revenue of $227.30 million during the quarter, compared to the consensus estimate of $224.46 million. During the same period in the previous year, the firm posted $0.18 earnings per share. The business’s revenue was up 10.6% compared to the same quarter last year. On average, equities analysts forecast that Virtusa Corporation will post $1.55 earnings per share for the current fiscal year.
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Virtusa Corporation declared that its Board of Directors has initiated a share repurchase plan on Wednesday, May 3rd that allows the company to buyback $30.00 million in shares. This buyback authorization allows the information technology services provider to repurchase up to 3.3% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.
In related news, CEO Kris A. Canekeratne sold 74,000 shares of the business’s stock in a transaction dated Friday, June 9th. The shares were sold at an average price of $28.76, for a total transaction of $2,128,240.00. Following the transaction, the chief executive officer now directly owns 780,315 shares in the company, valued at $22,441,859.40. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Roger Keith Modder sold 24,242 shares of the business’s stock in a transaction dated Thursday, May 25th. The stock was sold at an average price of $29.10, for a total transaction of $705,442.20. Following the transaction, the chief operating officer now owns 191,423 shares in the company, valued at $5,570,409.30. The disclosure for this sale can be found here. Insiders have sold 175,768 shares of company stock valued at $5,379,846 over the last quarter. Corporate insiders own 5.96% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. US Bancorp DE boosted its position in Virtusa Corporation by 10.3% in the second quarter. US Bancorp DE now owns 3,512 shares of the information technology services provider’s stock valued at $103,000 after buying an additional 327 shares during the period. SG Americas Securities LLC purchased a new position in Virtusa Corporation during the second quarter valued at $120,000. State of Alaska Department of Revenue boosted its position in Virtusa Corporation by 79.9% in the second quarter. State of Alaska Department of Revenue now owns 5,470 shares of the information technology services provider’s stock valued at $160,000 after buying an additional 2,430 shares during the period. BNP Paribas Arbitrage SA boosted its position in Virtusa Corporation by 9.2% in the first quarter. BNP Paribas Arbitrage SA now owns 6,166 shares of the information technology services provider’s stock valued at $186,000 after buying an additional 522 shares during the period. Finally, Municipal Employees Retirement System of Michigan boosted its position in Virtusa Corporation by 4.2% in the second quarter. Municipal Employees Retirement System of Michigan now owns 6,510 shares of the information technology services provider’s stock valued at $191,000 after buying an additional 260 shares during the period. Institutional investors and hedge funds own 94.50% of the company’s stock.
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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