Virtusa Co. (NASDAQ:VRTU) Sees Significant Decrease in Short Interest

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Virtusa Co. (NASDAQ:VRTU) was the target of a large decrease in short interest in July. As of July 31st, there was short interest totalling 470,600 shares, a decrease of 18.5% from the June 30th total of 577,100 shares. Currently, 1.7% of the shares of the stock are sold short. Based on an average daily volume of 184,700 shares, the days-to-cover ratio is presently 2.5 days.

Virtusa stock opened at $32.67 on Thursday. The firm’s fifty day moving average is $43.04. The company has a debt-to-equity ratio of 0.90, a quick ratio of 2.71 and a current ratio of 2.71. The stock has a market cap of $1.01 billion, a PE ratio of 22.38, a P/E/G ratio of 0.83 and a beta of 1.16. Virtusa has a fifty-two week low of $31.99 and a fifty-two week high of $58.60.

Virtusa (NASDAQ:VRTU) last posted its quarterly earnings data on Thursday, August 8th. The information technology services provider reported $0.41 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.01. Virtusa had a net margin of 2.23% and a return on equity of 11.85%. The firm had revenue of $319.00 million for the quarter, compared to analysts’ expectations of $317.59 million. During the same quarter last year, the company posted $0.50 EPS. The business’s quarterly revenue was up 6.3% on a year-over-year basis. On average, equities research analysts forecast that Virtusa will post 1.93 EPS for the current year.

Several research firms have recently weighed in on VRTU. Cantor Fitzgerald restated an “overweight” rating and set a $56.00 price objective (down previously from $62.00) on shares of Virtusa in a research report on Thursday, May 16th. Barrington Research restated an “outperform” rating and set a $60.00 price objective (down previously from $64.00) on shares of Virtusa in a research report on Monday. TheStreet cut shares of Virtusa from a “b-” rating to a “c+” rating in a research report on Wednesday, May 29th. Needham & Company LLC restated a “strong-buy” rating and set a $60.00 price objective on shares of Virtusa in a research report on Thursday, May 16th. Finally, Wedbush restated an “outperform” rating and set a $60.00 price objective (down previously from $70.00) on shares of Virtusa in a research report on Thursday, May 16th. Two analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus target price of $56.17.

In other news, Director Joseph Doody bought 5,000 shares of the stock in a transaction on Friday, May 31st. The shares were acquired at an average cost of $42.50 per share, for a total transaction of $212,500.00. Following the purchase, the director now directly owns 14,684 shares of the company’s stock, valued at approximately $624,070. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Kris A. Canekeratne sold 7,500 shares of the firm’s stock in a transaction on Monday, July 1st. The shares were sold at an average price of $44.31, for a total transaction of $332,325.00. Following the sale, the chief executive officer now owns 723,926 shares in the company, valued at approximately $32,077,161.06. The disclosure for this sale can be found here. Corporate insiders own 4.73% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the stock. Macquarie Group Ltd. grew its holdings in shares of Virtusa by 50.0% during the 4th quarter. Macquarie Group Ltd. now owns 600 shares of the information technology services provider’s stock valued at $26,000 after purchasing an additional 200 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in shares of Virtusa by 1,640.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 644 shares of the information technology services provider’s stock valued at $29,000 after purchasing an additional 607 shares during the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. bought a new position in shares of Virtusa during the 2nd quarter valued at $42,000. Financial Gravity Wealth Inc. bought a new position in shares of Virtusa during the 2nd quarter valued at $56,000. Finally, Oppenheimer Asset Management Inc. grew its holdings in shares of Virtusa by 35.3% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 1,495 shares of the information technology services provider’s stock valued at $66,000 after purchasing an additional 390 shares during the last quarter. 79.55% of the stock is currently 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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