Virtusa (VRTU) Raised to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Virtusa (NASDAQ:VRTU) from a hold rating to a buy rating in a research note issued to investors on Saturday morning. The firm currently has $52.00 price objective on the information technology services provider’s stock.
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 brokerages also recently commented on VRTU. Maxim Group upgraded shares of Virtusa from a hold rating to a buy rating and set a $51.00 target price on the stock in a research note on Wednesday, November 8th. Needham & Company LLC upped their target price on shares of Virtusa to $55.00 and gave the stock a buy rating in a research note on Friday, November 17th. TheStreet upgraded shares of Virtusa from a c rating to a b- rating in a research note on Wednesday, November 8th. Cowen restated a buy rating and issued a $55.00 target price on shares of Virtusa in a research note on Thursday, December 14th. Finally, Cantor Fitzgerald restated a buy rating and issued a $37.00 target price on shares of Virtusa in a research note on Sunday, November 5th. Two research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The stock has an average rating of Buy and a consensus price target of $49.25.
Virtusa (NASDAQ:VRTU) last issued its earnings results on Wednesday, November 8th. The information technology services provider reported $0.35 EPS for the quarter, topping the Zacks’ consensus estimate of $0.24 by $0.11. The business had revenue of $248.20 million for the quarter, compared to the consensus estimate of $237.48 million. Virtusa had a net margin of 2.54% and a return on equity of 4.86%. The company’s revenue for the quarter was up 18.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.27 EPS. sell-side analysts anticipate that Virtusa will post 1.04 earnings per share for the current fiscal year.
In other news, Director Robert E. Davoli sold 1,505 shares of the stock in a transaction that occurred on Tuesday, December 12th. The shares were sold at an average price of $45.31, for a total transaction of $68,191.55. Following the transaction, the director now directly owns 9,996 shares in the company, valued at $452,918.76. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Raj Rajgopal sold 14,025 shares of the stock in a transaction that occurred on Friday, November 10th. The shares were sold at an average price of $45.02, for a total transaction of $631,405.50. Following the transaction, the insider now owns 108,576 shares in the company, valued at $4,888,091.52. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 77,580 shares of company stock worth $3,523,204. 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. SG Americas Securities LLC bought a new position in shares of Virtusa during the second quarter valued at approximately $120,000. Victory Capital Management Inc. bought a new position in shares of Virtusa during the third quarter valued at approximately $130,000. Piedmont Investment Advisors LLC bought a new position in shares of Virtusa during the third quarter valued at approximately $224,000. Trexquant Investment LP bought a new position in shares of Virtusa during the third quarter valued at approximately $247,000. Finally, BNP Paribas Arbitrage SA lifted its position in Virtusa by 42.8% during the second quarter. BNP Paribas Arbitrage SA now owns 8,805 shares of the information technology services provider’s stock valued at $259,000 after acquiring an additional 2,639 shares during the last quarter. Hedge funds and other institutional investors own 88.00% of the company’s stock.
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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