Virtusa (NASDAQ:VRTU) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research cut shares of Virtusa (NASDAQ:VRTU) from a hold rating to a sell rating in a research note issued to investors on Wednesday, Zacks.com reports.

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. “

Several other brokerages have also recently weighed in on VRTU. William Blair cut shares of Virtusa from an outperform rating to a market perform rating in a research note on Thursday, May 14th. Barrington Research reiterated a buy rating and issued a $38.00 price objective on shares of Virtusa in a research note on Thursday, May 14th. BidaskClub cut shares of Virtusa from a buy rating to a hold rating in a research note on Thursday, July 9th. Finally, Rosenblatt Securities cut shares of Virtusa from a buy rating to a neutral rating in a research report on Thursday, April 16th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and five have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $42.50.

NASDAQ VRTU opened at $40.60 on Wednesday. Virtusa has a 52-week low of $19.48 and a 52-week high of $52.81. The company has a debt-to-equity ratio of 1.31, a quick ratio of 2.70 and a current ratio of 2.70. The firm has a 50-day moving average of $31.91 and a 200-day moving average of $35.10. The stock has a market cap of $1.07 billion, a PE ratio of 33.01, a P/E/G ratio of 1.87 and a beta of 1.38.

Virtusa (NASDAQ:VRTU) last issued its quarterly earnings data on Thursday, July 30th. The information technology services provider reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.06. Virtusa had a net margin of 3.32% and a return on equity of 13.36%. The business had revenue of $301.06 million during the quarter, compared to analysts’ expectations of $287.20 million. As a group, analysts predict that Virtusa will post 1.35 EPS for the current fiscal year.

Large investors have recently modified their holdings of the company. Advisor Group Holdings Inc. acquired a new position in shares of Virtusa in the 1st quarter valued at approximately $28,000. Aigen Investment Management LP bought a new stake in shares of Virtusa during the 1st quarter valued at approximately $57,000. First Quadrant L P CA bought a new stake in shares of Virtusa during the 2nd quarter valued at approximately $91,000. Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of Virtusa by 16.3% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,844 shares of the information technology services provider’s stock valued at $81,000 after purchasing an additional 399 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of Virtusa by 39.7% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,972 shares of the information technology services provider’s stock valued at $129,000 after purchasing an additional 1,128 shares during the last quarter. Institutional investors own 92.94% of the company’s stock.

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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