Cognizant Technology Solutions (NASDAQ:CTSH) Trading Up 5% – What’s Next?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s stock price rose 5% during trading on Tuesday . The company traded as high as $43.67 and last traded at $43.4290. Approximately 1,371,072 shares traded hands during trading, a decline of 83% from the average daily volume of 8,121,304 shares. The stock had previously closed at $41.37.

Wall Street Analysts Forecast Growth

CTSH has been the subject of a number of recent analyst reports. Wedbush upgraded shares of Cognizant Technology Solutions from a “neutral” rating to an “outperform” rating and boosted their price objective for the stock from $56.00 to $70.00 in a report on Monday, June 8th. TD Cowen reduced their target price on Cognizant Technology Solutions from $62.00 to $47.00 and set a “hold” rating for the company in a report on Friday, June 26th. Berenberg Bank set a $59.00 price target on Cognizant Technology Solutions and gave the stock a “hold” rating in a research note on Wednesday, June 17th. The Goldman Sachs Group set a $75.00 price objective on Cognizant Technology Solutions in a research report on Wednesday, April 29th. Finally, HSBC lowered their target price on shares of Cognizant Technology Solutions from $80.00 to $68.00 and set a “buy” rating on the stock in a research note on Wednesday, July 1st. Eleven equities research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $68.35.

Cognizant Technology Solutions Price Performance

The firm has a 50-day moving average of $49.48 and a 200-day moving average of $63.80. The stock has a market cap of $20.81 billion, a PE ratio of 9.56, a PEG ratio of 0.88 and a beta of 0.87. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The business had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same period in the prior year, the company posted $1.23 EPS. The firm’s revenue for the quarter was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Research analysts predict that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s payout ratio is currently 28.70%.

Cognizant Technology Solutions announced that its Board of Directors has approved a stock repurchase program on Monday, May 18th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several large investors have recently made changes to their positions in CTSH. JPL Wealth Management LLC purchased a new position in Cognizant Technology Solutions during the 3rd quarter valued at approximately $25,000. Lodestone Wealth Management LLC purchased a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $28,000. Flagship Harbor Advisors LLC bought a new position in shares of Cognizant Technology Solutions during the 4th quarter valued at approximately $28,000. Physician Wealth Advisors Inc. grew its holdings in shares of Cognizant Technology Solutions by 165.1% in the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock valued at $28,000 after purchasing an additional 213 shares in the last quarter. Finally, Prosperity Bancshares Inc purchased a new position in shares of Cognizant Technology Solutions in the fourth quarter valued at $29,000. 92.44% of the stock is owned by institutional investors.

About Cognizant Technology Solutions

Cognizant Technology Solutions (NASDAQ: CTSH) is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.