Virtusa (VRTU) Lifted 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 report released on Friday, Zacks.com reports. The firm currently has $61.00 price target 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. “

VRTU has been the subject of several other research reports. Cantor Fitzgerald restated a buy rating and issued a $62.00 price objective on shares of Virtusa in a research note on Friday, February 8th. BidaskClub raised shares of Virtusa from a hold rating to a buy rating in a report on Friday, January 11th. Finally, Barrington Research set a $64.00 target price on shares of Virtusa and gave the company a buy rating in a report on Friday, December 14th. One investment analyst has rated the stock with a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $62.83.

NASDAQ VRTU opened at $55.36 on Friday. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.35 and a quick ratio of 2.35. Virtusa has a 1 year low of $37.80 and a 1 year high of $58.60. The firm has a market capitalization of $1.68 billion, a price-to-earnings ratio of 62.20, a P/E/G ratio of 1.37 and a beta of 1.05.

Virtusa (NASDAQ:VRTU) last released its quarterly earnings data on Thursday, February 7th. The information technology services provider reported $0.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.19. Virtusa had a net margin of 0.89% and a return on equity of 11.39%. The company had revenue of $314.68 million during the quarter, compared to the consensus estimate of $313.32 million. During the same quarter in the prior year, the firm posted $0.47 earnings per share. Virtusa’s revenue for the quarter was up 19.3% on a year-over-year basis. On average, sell-side analysts anticipate that Virtusa will post 1.61 EPS for the current fiscal year.

In other news, CEO Kris A. Canekeratne sold 10,000 shares of the company’s stock in a transaction dated Wednesday, January 16th. The shares were sold at an average price of $46.85, for a total value of $468,500.00. Following the completion of the sale, the chief executive officer now directly owns 661,387 shares of the company’s stock, valued at $30,985,980.95. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Kris A. Canekeratne sold 12,000 shares of the company’s stock in a transaction dated Wednesday, April 10th. The shares were sold at an average price of $56.41, for a total transaction of $676,920.00. Following the completion of the sale, the chief executive officer now directly owns 597,117 shares of the company’s stock, valued at $33,683,369.97. The disclosure for this sale can be found here. Insiders sold 227,464 shares of company stock valued at $11,705,602 over the last ninety days. Corporate insiders own 5.11% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in Virtusa by 2.4% during the third quarter. Vanguard Group Inc. now owns 2,352,310 shares of the information technology services provider’s stock worth $126,343,000 after purchasing an additional 55,460 shares in the last quarter. Thrivent Financial for Lutherans raised its holdings in Virtusa by 8.4% during the fourth quarter. Thrivent Financial for Lutherans now owns 999,374 shares of the information technology services provider’s stock worth $42,563,000 after purchasing an additional 77,337 shares in the last quarter. Rothschild & Co. Asset Management US Inc. raised its holdings in Virtusa by 6.0% during the fourth quarter. Rothschild & Co. Asset Management US Inc. now owns 181,963 shares of the information technology services provider’s stock worth $7,750,000 after purchasing an additional 10,274 shares in the last quarter. Teachers Advisors LLC raised its holdings in Virtusa by 2.8% during the third quarter. Teachers Advisors LLC now owns 334,047 shares of the information technology services provider’s stock worth $17,942,000 after purchasing an additional 9,235 shares in the last quarter. Finally, Monarch Partners Asset Management LLC purchased a new position in Virtusa during the fourth quarter worth about $6,792,000. 88.58% of the stock is owned by hedge funds and other institutional investors.

About Virtusa

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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