Optimistic Investors take a look at Virtusa Corp (NASADQ: VRTU)

Optimistic Investors take a look at Virtusa Corp (NASADQ: VRTU)

Optimistic Investors take a look at Virtusa Corp (NASADQ: VRTU)

Those more optimistic investors, who believe the first half of 2013 will be a good year, will be provided with several good buying opportunities. Right now the global economy appears to be stronger than most expected, and investing global may be one of the more profitable strategies in the forthcoming year.  Virtusa Corp (NASDAQ: VRTU) is a global company that provides information technology (IT) consulting and outsourcing services in North America, Europe, the Middle East, and Asia. VRTU is expected to increase revenue above the industry average rate over the next few years, which when coupled with margin expansion, should drive its above average earnings growth over the next few years.

There has been a significant amount of insider buying recently that has spurred interest in the stock. In November, Virtusa Corp’s Director, Rowland T. Moriarty made a $462,477 purchase of VRTU, buying 30,000 shares at a cost of $15.42. Before this latest buy, Moriarty bought VRTU at two other times during the past year, for a total cost of $241,771 at an average price of $14.22 per share. Vice President of Virtusa, Samir Dihr purchased shares in November as well, with a few other directors buying in October and November.

The company currently trades around $16.00 a share, and has a buy recommendation from JP Morgan with a price target of $22.00. Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Virtusa is a buy, with an average price target of $20.33. In its last earnings announcement compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly. The company is expected to outperform in 2013 as IT outsourcing and consulting services grow. Any pullback in the stock should be considered an investable growth opportunity. 

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  • Lillie

    It’s a good play and has been for quite awhile.

  • mrgambale@gmail.com

    A keeper in the portfolio. Provides great diversification and is a well run company.

  • meikoacebo

    Insider buying is an indication of good things to come. Who knows better of the company’s prospects than management/insiders right?

    • Chizy

      @meikoacebo, I believe so too but in rare cases, management does that to give the notion that the company is headed somewhere when actually it is not. Although in the case of Virtusa, I think it is headed somewhere good.