Virtusa Corporation (NASDAQ:VRTU) is a stock to watch today. At current price of $44.31, the shares have already added 1.3 points (3.02% higher) from its previous close of $43.01. The stock sets an active trading volume day with a reported 244454 contracts so far this session. VRTU shares had a relatively better volume day versus average trading capacity of 138.62 thousand shares, but with a 28.55 million float and a -18.31% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for VRTU stock indicates that the average analyst price target is $65.2 per share. This means the stock has a potential increase of 47.15% from where the VRTU share price has been trading recently which is between $41.2083 and $46.16. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $52.
The shorts are running away from Virtusa Corporation (VRTU) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in VRTU shares. While short interest still represents only 2.45% of VRTU’s float, the number of shares shorted have fallen by -106709. The number of shares shorted fell to 592802 shares, down from 699511 shares during the preceding fortnight. With average daily trading volumes at 91776 shares, days to cover increased to about 5.965623 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Walmart and Cisco rise while Virtusa and Farfetch stumble” and dated May 16, 2019.
During the recent trading session for Virtusa Corporation (NASDAQ:VRTU), the company witnessed their stock drop by $-9.36 over a week and tumble down $-8.53 from the price 20 days ago. When compared to their established 52-week high of $58.6, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/17/18. The recent low of $37.8 stood for a -24.39% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.06 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Virtusa Corporation, the two-week RSI stands at 29.86. This figure suggests that VRTU stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current VRTU readings is similarly very revealing as it has a stochastic reading of 32.04% at this stage. This figure means that VRTU share price today is being neutral.
Technical chart claims that Virtusa Corporation (VRTU) would settle between $45.71/share to $48.41/share level. However, if the stock price goes below the $40.76 mark, then the market for Virtusa Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $38.51 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -3.71. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at SunTrust raised their recommendation on shares of VRTU from Hold to Buy in their opinion released on November 29. Needham analysts again handed out a Strong Buy recommendation to Virtusa Corporation (NASDAQ:VRTU) stock but they lifted target price for the shares in a flash note issued to investors on August 09. The target price has been raised from $65 to $68. Analysts at Needham released an upgrade from Buy to Strong Buy for the stock, in a research note that dated back to April 10.
VRTU equity has an average rating of 1.57, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 7 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 7 analysts rated Virtusa Corporation (NASDAQ:VRTU) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, VRTU stock price is currently trading at 15.36X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.07 while for the average stock in the same group, the multiple is 372.68. Virtusa Corporation current P/E ratio of 162.19 means it is trading at a premium against its industry’s 21.11. In the past 5 years, this ratio for the stock has been fluctuating between 25.09 and 77.