Latest Stocks: Virtusa Co. (VRTU) Shares Gap Down Following Weak Earnings

Latest Stocks: Virtusa Co. (VRTU) Shares Gap Down  Following Weak Earnings

Shares of Virtusa Co. (NASDAQ:VRTU) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $24.19, but opened at $27.37. Virtusa shares last traded at $25.96, with a volume of 631,944 shares changing hands.

The information technology services provider reported $0.43 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.45 by $0.02. The firm had revenue of $226 million during the quarter, compared to the consensus estimate of $226.67 million. Virtusa had a net margin of 1.70% and a return on equity of 4.32%. The firm’s revenue for the quarter was up 31.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.55 earnings per share.

A number of brokerages recently commented on VRTU. Needham & Company LLC lifted their target price on shares of Virtusa from $24.00 to $32.00 and gave the stock a “buy” rating in a research report on Thursday, February 9th. Barrington Research set a $35.00 price objective on shares of Virtusa and gave the company a “buy” rating in a research report on Thursday, May 25th. SunTrust Banks, Inc. set a $32.00 price objective on shares of Virtusa and gave the company a “buy” rating in a research report on Friday, May 19th. Maxim Group reaffirmed a “hold” rating on shares of Virtusa in a research note on Tuesday, May 16th. Finally, Zacks Investment Research raised shares of Virtusa from a “strong sell” rating to a “hold” rating in a research note on Wednesday, April 12th. Three investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus target price of $34.43. In other Virtusa news, EVP Thomas R. Holler sold 29,873 shares of the company’s stock in a transaction that occurred on Friday, May 19th. The shares were sold at an average price of $28.00, for a total value of $836,444.00. Following the completion of the transaction, the executive vice president now directly owns 45,716 shares in the company, valued at $1,280,048. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Roger Keith Modder sold 24,242 shares of the company’s stock in a transaction that occurred on Thursday, May 25th. The stock was sold at an average price of $29.10, for a total transaction of $705,442.20. Following the completion of the transaction, the chief operating officer now owns 191,423 shares of the company’s stock, valued at $5,570,409.30. The disclosure for this sale can be found here. 9.92% of the stock is currently owned by corporate insiders.

Several institutional investors have recently bought and sold shares of the company. BNP Paribas Arbitrage SA raised its position in shares of Virtusa by 9.2% in the first quarter. BNP Paribas Arbitrage SA now owns 6,166 shares of the information technology services provider’s stock worth $186,000 after buying an additional 522 shares in the last quarter. Mason Street Advisors LLC raised its position in shares of Virtusa by 7.0% in the first quarter. Mason Street Advisors LLC now owns 6,445 shares of the information technology services provider’s stock worth $195,000 after buying an additional 422 shares in the last quarter. Atria Investments LLC bought a new position in shares of Virtusa during the first quarter worth $203,000. Miles Capital Inc. raised its position in shares of Virtusa by 7.2% in the fourth quarter. Miles Capital Inc. now owns 8,865 shares of the information technology services provider’s stock worth $223,000 after buying an additional 599 shares in the last quarter. Finally, Tudor Investment Corp Et Al bought a new position in shares of Virtusa during the fourth quarter worth $236,000. Institutional investors and hedge funds own 93.20% of the company’s stock. The company has a market capitalization of $852.67 million, a PE ratio of 72.59 and a beta of 1.42. The firm has a 50-day moving average price of $29.74 and a 200 day moving average price of $27.82.

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