Zacks Investment Research cut shares of Virtusa (NASDAQ:VRTU) from a hold rating to a sell rating in a report issued on Saturday morning, 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. “

A number of other research firms have also recently commented on VRTU. TheStreet cut Virtusa from a b- rating to a c+ rating in a report on Wednesday, May 29th. Wedbush reissued an outperform rating and set a $60.00 price target (down from $70.00) on shares of Virtusa in a report on Thursday, May 16th. Barrington Research reissued an outperform rating and set a $60.00 price target (down from $64.00) on shares of Virtusa in a report on Monday, August 12th. Needham & Company LLC reissued a strong-buy rating and set a $60.00 price target on shares of Virtusa in a report on Thursday, May 16th. Finally, Cantor Fitzgerald reissued an overweight rating and set a $56.00 price target (down from $62.00) on shares of Virtusa in a report on Thursday, May 16th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of Buy and an average target price of $56.17.

NASDAQ:VRTU opened at $34.76 on Friday. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.99. The business’s 50-day simple moving average is $41.92 and its two-hundred day simple moving average is $47.77. The stock has a market cap of $1.05 billion, a PE ratio of 23.81, a P/E/G ratio of 1.00 and a beta of 1.16. Virtusa has a 52 week low of $31.99 and a 52 week high of $58.60.

Virtusa (NASDAQ:VRTU) last posted its quarterly earnings results on Thursday, August 8th. The information technology services provider reported $0.41 EPS for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.01. The business had revenue of $319.00 million for the quarter, compared to analysts’ expectations of $317.59 million. Virtusa had a return on equity of 11.67% and a net margin of 2.23%. The business’s quarterly revenue was up 6.3% on a year-over-year basis. During the same period last year, the firm earned $0.50 earnings per share. Sell-side analysts anticipate that Virtusa will post 1.93 earnings per share for the current fiscal year.

In other news, CEO Kris A. Canekeratne sold 7,500 shares of Virtusa stock in a transaction dated Monday, July 1st. The stock was sold at an average price of $44.31, for a total value of $332,325.00. Following the sale, the chief executive officer now directly owns 723,926 shares of the company’s stock, valued at $32,077,161.06. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joseph Doody bought 5,000 shares of Virtusa stock in a transaction dated Friday, May 31st. The stock was purchased at an average cost of $42.50 per share, for a total transaction of $212,500.00. Following the completion of the acquisition, the director now directly owns 14,684 shares of the company’s stock, valued at approximately $624,070. The disclosure for this purchase can be found here. Insiders own 4.73% of the company’s stock.

Several hedge funds have recently modified their holdings of VRTU. Macquarie Group Ltd. raised its stake in Virtusa by 50.0% in the 4th quarter. Macquarie Group Ltd. now owns 600 shares of the information technology services provider’s stock valued at $26,000 after acquiring an additional 200 shares during the period. Norges Bank bought a new stake in Virtusa in the 4th quarter valued at $15,553,000. Pier Capital LLC bought a new stake in Virtusa in the 1st quarter valued at $7,264,000. BNP Paribas Arbitrage SA raised its stake in Virtusa by 266.0% in the 1st quarter. BNP Paribas Arbitrage SA now owns 6,251 shares of the information technology services provider’s stock valued at $334,000 after acquiring an additional 4,543 shares during the period. Finally, AMI Asset Management Corp raised its stake in Virtusa by 0.8% in the 1st quarter. AMI Asset Management Corp now owns 226,557 shares of the information technology services provider’s stock valued at $12,109,000 after acquiring an additional 1,785 shares during the period. 87.65% of the stock is currently owned by hedge funds and other institutional investors.

Virtusa Company Profile

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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