Virtusa (NASDAQ:VRTU) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday, 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 analysts have also recently commented on VRTU. BidaskClub upgraded shares of Virtusa from a “hold” rating to a “buy” rating in a research report on Thursday. Barrington Research reiterated an “outperform” rating and set a $60.00 price target (down from $64.00) on shares of Virtusa in a research report on Monday, August 12th. TheStreet cut shares of Virtusa from a “b-” rating to a “c+” rating in a research report on Wednesday, May 29th. ValuEngine cut shares of Virtusa from a “buy” rating to a “hold” rating in a research report on Saturday, August 10th. Finally, Wedbush restated an “outperform” rating and issued a $60.00 target price (down previously from $70.00) on shares of Virtusa in a report on Thursday, May 16th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and six have issued a buy rating to the company’s stock. Virtusa has an average rating of “Buy” and an average price target of $54.17.

VRTU traded down $0.31 on Friday, reaching $39.94. The company had a trading volume of 11,654 shares, compared to its average volume of 263,176. The business has a 50 day simple moving average of $38.87 and a 200 day simple moving average of $46.34. The company has a market cap of $1.24 billion, a price-to-earnings ratio of 27.36, a P/E/G ratio of 1.18 and a beta of 1.20. The company has a debt-to-equity ratio of 0.99, a quick ratio of 2.58 and a current ratio of 2.58. Virtusa has a 52-week low of $31.99 and a 52-week high of $58.60.

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

In other news, insider Samir Dhir sold 4,000 shares of the firm’s stock in a transaction that occurred on Friday, August 30th. The shares were sold at an average price of $35.91, for a total value of $143,640.00. Following the transaction, the insider now owns 157,780 shares in the company, valued at $5,665,879.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Kris A. Canekeratne sold 15,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $36.57, for a total transaction of $548,550.00. Following the completion of the transaction, the chief executive officer now owns 706,748 shares in the company, valued at approximately $25,845,774.36. The disclosure for this sale can be found here. Insiders sold 26,500 shares of company stock worth $1,024,515 in the last 90 days. Company insiders own 4.73% of the company’s stock.

A number of hedge funds have recently made changes to their positions in the stock. United Services Automobile Association lifted its stake in Virtusa by 6.4% in the second quarter. United Services Automobile Association now owns 115,335 shares of the information technology services provider’s stock worth $5,124,000 after acquiring an additional 6,900 shares during the period. Hillcrest Asset Management LLC lifted its stake in Virtusa by 0.6% in the second quarter. Hillcrest Asset Management LLC now owns 283,241 shares of the information technology services provider’s stock worth $12,584,000 after acquiring an additional 1,700 shares during the period. Nuveen Asset Management LLC purchased a new stake in Virtusa in the second quarter worth $16,669,000. UBS Asset Management Americas Inc. lifted its stake in Virtusa by 7.4% in the second quarter. UBS Asset Management Americas Inc. now owns 22,652 shares of the information technology services provider’s stock worth $1,006,000 after acquiring an additional 1,555 shares during the period. Finally, Cubist Systematic Strategies LLC lifted its stake in Virtusa by 94.1% in the second quarter. Cubist Systematic Strategies LLC now owns 7,362 shares of the information technology services provider’s stock worth $327,000 after acquiring an additional 3,569 shares during the period. 88.27% of the stock is owned by 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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