Virtusa (NASDAQ:VRTU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Sunday.

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 research firms have also recently weighed in on VRTU. BidaskClub raised Virtusa from a “hold” rating to a “buy” rating in a report on Saturday. Barrington Research boosted their price target on Virtusa to $52.00 and gave the stock an “outperform” rating in a report on Thursday, November 9th. Needham & Company LLC boosted their price target on Virtusa to $55.00 and gave the stock a “buy” rating in a report on Friday, November 17th. TheStreet raised Virtusa from a “c” rating to a “b-” rating in a report on Wednesday, November 8th. Finally, SunTrust Banks reissued a “buy” rating and issued a $52.00 price target on shares of Virtusa in a report on Friday, November 10th. Two equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Virtusa presently has a consensus rating of “Buy” and a consensus price target of $49.25.

Virtusa (VRTU) opened at $46.70 on Friday. Virtusa has a 1-year low of $24.84 and a 1-year high of $48.71. The firm has a market capitalization of $1,370.00, a price-to-earnings ratio of 65.77, a PEG ratio of 2.31 and a beta of 1.72. The company has a debt-to-equity ratio of 0.18, a current ratio of 4.03 and a quick ratio of 4.03.

Virtusa (NASDAQ:VRTU) last released its quarterly earnings results on Wednesday, November 8th. The information technology services provider reported $0.35 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.24 by $0.11. Virtusa had a return on equity of 4.86% and a net margin of 2.54%. The company had revenue of $248.20 million during the quarter, compared to analysts’ expectations of $237.48 million. During the same period in the previous year, the firm posted $0.27 earnings per share. The business’s revenue for the quarter was up 18.1% compared to the same quarter last year. equities research analysts anticipate that Virtusa will post 1.04 EPS for the current year.

In related news, insider Raj Rajgopal sold 4,025 shares of the company’s stock in a transaction on Tuesday, January 2nd. The stock was sold at an average price of $44.35, for a total value of $178,508.75. Following the completion of the transaction, the insider now directly owns 98,576 shares in the company, valued at $4,371,845.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Kris A. Canekeratne sold 12,000 shares of the company’s stock in a transaction on Friday, January 19th. The shares were sold at an average price of $47.70, for a total value of $572,400.00. Following the completion of the transaction, the chief executive officer now owns 541,491 shares of the company’s stock, valued at $25,829,120.70. The disclosure for this sale can be found here. Insiders sold 89,580 shares of company stock valued at $4,095,604 over the last quarter. Insiders own 5.96% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in VRTU. Schwab Charles Investment Management Inc. increased its stake in Virtusa by 1.1% in the second quarter. Schwab Charles Investment Management Inc. now owns 118,351 shares of the information technology services provider’s stock valued at $3,480,000 after purchasing an additional 1,324 shares during the last quarter. SG Americas Securities LLC purchased a new stake in Virtusa during the second quarter valued at about $120,000. Bank of New York Mellon Corp grew its position in Virtusa by 2.5% during the second quarter. Bank of New York Mellon Corp now owns 332,829 shares of the information technology services provider’s stock valued at $9,784,000 after acquiring an additional 8,195 shares during the period. Legal & General Group Plc grew its position in Virtusa by 7.2% during the second quarter. Legal & General Group Plc now owns 53,810 shares of the information technology services provider’s stock valued at $1,583,000 after acquiring an additional 3,622 shares during the period. Finally, Principal Financial Group Inc. grew its position in Virtusa by 0.6% during the second quarter. Principal Financial Group Inc. now owns 210,762 shares of the information technology services provider’s stock valued at $6,196,000 after acquiring an additional 1,275 shares during the period. Hedge funds and other institutional investors own 87.87% of the company’s stock.

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About Virtusa

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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