Cognizant Technology Solutions (NASDAQ:CTSH) Shares Gap Up – Here’s Why

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s stock price gapped up before the market opened on Thursday. The stock had previously closed at $57.44, but opened at $61.90. Cognizant Technology Solutions shares last traded at $64.0910, with a volume of 2,976,761 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CTSH. Citigroup reaffirmed a “neutral” rating and issued a $60.00 target price (up from $45.00) on shares of Cognizant Technology Solutions in a research note on Thursday, July 30th. Guggenheim reissued a “buy” rating and set a $65.00 price target (down from $80.00) on shares of Cognizant Technology Solutions in a research report on Monday, July 27th. Mizuho set a $64.00 price target on shares of Cognizant Technology Solutions in a report on Thursday, August 6th. JPMorgan Chase & Co. decreased their price objective on shares of Cognizant Technology Solutions from $74.00 to $55.00 and set an “overweight” rating on the stock in a research report on Friday, July 24th. Finally, Robert W. Baird set a $68.00 price objective on shares of Cognizant Technology Solutions in a research note on Thursday, July 30th. Ten investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $64.43.

Cognizant Technology Solutions Trading Up 6.9%

The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.18 and a current ratio of 2.18. The stock has a market capitalization of $27.66 billion, a P/E ratio of 13.18, a price-to-earnings-growth ratio of 1.06 and a beta of 0.83. The stock has a 50-day moving average price of $58.60 and a two-hundred day moving average price of $54.44.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The business had revenue of $5.48 billion for the quarter, compared to the consensus estimate of $5.48 billion. During the same quarter in the prior year, the company earned $1.31 EPS. Cognizant Technology Solutions’s revenue was up 4.5% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. On average, research analysts forecast that Cognizant Technology Solutions Corporation will post 5.74 EPS for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 18th were paid a dividend of $0.33 per share. The ex-dividend date of this dividend was Tuesday, August 18th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.1%. Cognizant Technology Solutions’s payout ratio is presently 28.39%.

Hedge Funds Weigh In On Cognizant Technology Solutions

A number of institutional investors have recently bought and sold shares of CTSH. Security National Bank of SO Dak grew its holdings in shares of Cognizant Technology Solutions by 1.1% during the 2nd quarter. Security National Bank of SO Dak now owns 25,780 shares of the information technology service provider’s stock worth $998,000 after acquiring an additional 290 shares during the period. Security National Bank of Sioux City Iowa IA lifted its stake in shares of Cognizant Technology Solutions by 40.8% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 35,837 shares of the information technology service provider’s stock valued at $1,388,000 after purchasing an additional 10,385 shares during the period. ABS Direct Equity Fund LLC purchased a new position in shares of Cognizant Technology Solutions in the 2nd quarter valued at approximately $360,000. Sequoia Financial Advisors LLC boosted its position in shares of Cognizant Technology Solutions by 69.0% during the second quarter. Sequoia Financial Advisors LLC now owns 98,919 shares of the information technology service provider’s stock valued at $3,831,000 after purchasing an additional 40,379 shares in the last quarter. Finally, Tidal Investments LLC grew its stake in Cognizant Technology Solutions by 20.7% in the second quarter. Tidal Investments LLC now owns 224,697 shares of the information technology service provider’s stock worth $8,703,000 after purchasing an additional 38,577 shares during the period. 92.44% of the stock is owned by institutional investors.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation (NASDAQ: CTSH) is a global professional services and information technology company that helps businesses modernize their operations and technology infrastructure. Its services include IT consulting, systems integration, application development and modernization, cloud computing, data and analytics, artificial intelligence, cybersecurity, and digital engineering.

The company also provides business process services and industry-specific solutions for sectors such as financial services, healthcare, life sciences, manufacturing, retail, communications, and information technology.