Virtusa’s (VRTU) “Buy” Rating Reiterated at Barrington Research

Virtusa (NASDAQ:VRTU)‘s stock had its “buy” rating restated by research analysts at Barrington Research in a report issued on Friday. They currently have a $64.00 price objective on the information technology services provider’s stock. Barrington Research’s price target indicates a potential upside of 31.23% from the company’s previous close.

The analysts wrote, “We believe the company continues to gain share due to its relatively high exposure and strengths in digital solutions and legacy system m odernization services.””

A number of other equities research analysts have also issued reports on the company. Zacks Investment Research lowered Virtusa from a “buy” rating to a “hold” rating in a research report on Tuesday, September 11th. SunTrust Banks upped their price target on Virtusa to $56.00 and gave the company a “hold” rating in a research report on Monday, August 13th. Cantor Fitzgerald upped their price target on Virtusa from $60.00 to $62.00 and gave the company an “overweight” rating in a research report on Friday, August 10th. Wedbush upped their price target on Virtusa from $60.00 to $70.00 and gave the company an “outperform” rating in a research report on Friday, August 31st. Finally, Needham & Company LLC upped their price target on Virtusa from $65.00 to $68.00 and gave the company a “strong-buy” rating in a research report on Thursday, August 9th. Four equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $62.00.

NASDAQ:VRTU traded down $0.78 during trading hours on Friday, hitting $48.77. 283,052 shares of the stock were exchanged, compared to its average volume of 138,088. Virtusa has a 52-week low of $39.77 and a 52-week high of $58.60. The company has a current ratio of 2.50, a quick ratio of 2.50 and a debt-to-equity ratio of 0.68. The firm has a market cap of $1.47 billion, a P/E ratio of 54.80, a price-to-earnings-growth ratio of 1.56 and a beta of 1.23.

Virtusa (NASDAQ:VRTU) last posted its quarterly earnings data on Thursday, November 8th. The information technology services provider reported $0.54 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.54. Virtusa had a positive return on equity of 7.38% and a negative net margin of 0.80%. The company had revenue of $305.50 million during the quarter, compared to analyst estimates of $306.37 million. During the same period in the previous year, the business earned $0.35 EPS. Virtusa’s quarterly revenue was up 23.1% on a year-over-year basis. On average, research analysts forecast that Virtusa will post 1.59 earnings per share for the current year.

In other news, President Samir Dhir sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, August 13th. The stock was sold at an average price of $52.89, for a total value of $211,560.00. Following the completion of the sale, the president now directly owns 129,045 shares in the company, valued at $6,825,190.05. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Kris A. Canekeratne sold 3,000 shares of the company’s stock in a transaction that occurred on Friday, August 17th. The shares were sold at an average price of $53.17, for a total value of $159,510.00. Following the completion of the sale, the chief executive officer now owns 722,691 shares of the company’s stock, valued at $38,425,480.47. The disclosure for this sale can be found here. Insiders sold 11,000 shares of company stock valued at $569,270 over the last 90 days. Company insiders own 5.11% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Cambridge Investment Research Advisors Inc. acquired a new position in Virtusa in the second quarter valued at approximately $229,000. Summit Creek Advisors LLC lifted its holdings in Virtusa by 35.0% in the third quarter. Summit Creek Advisors LLC now owns 175,929 shares of the information technology services provider’s stock valued at $9,449,000 after acquiring an additional 45,567 shares during the last quarter. Schwab Charles Investment Management Inc. lifted its holdings in Virtusa by 8.7% in the second quarter. Schwab Charles Investment Management Inc. now owns 148,231 shares of the information technology services provider’s stock valued at $7,216,000 after acquiring an additional 11,859 shares during the last quarter. Redwood Investments LLC lifted its holdings in Virtusa by 30.9% in the second quarter. Redwood Investments LLC now owns 398,295 shares of the information technology services provider’s stock valued at $19,389,000 after acquiring an additional 94,102 shares during the last quarter. Finally, KBC Group NV lifted its holdings in Virtusa by 28.0% in the second quarter. KBC Group NV now owns 51,674 shares of the information technology services provider’s stock valued at $2,515,000 after acquiring an additional 11,292 shares during the last quarter. Hedge funds and other institutional investors own 87.04% 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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Analyst Recommendations for Virtusa (NASDAQ:VRTU)

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