Cognizant Technology Solutions (NASDAQ:CTSH) Shares Climb 4.7% – Time to Buy?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s share price rose 4.7% during mid-day trading on Tuesday. The company traded as high as $62.54 and last traded at $62.4830. 413,439 shares were traded during trading, a decline of 95% from the average daily volume of 7,990,033 shares. The stock had previously closed at $59.68.

Analysts Set New Price Targets

A number of analysts recently weighed in on CTSH shares. HSBC decreased their price target on 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. Nomura dropped their price target on Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating for the company in a research report on Wednesday, July 1st. Robert W. Baird set a $68.00 price objective on shares of Cognizant Technology Solutions in a research note on Thursday, July 30th. Susquehanna set a $82.00 price objective on Cognizant Technology Solutions and gave the stock a “positive” rating in a research report on Thursday, July 30th. Finally, JPMorgan Chase & Co. reduced their price objective on 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. Ten equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $64.70.

Cognizant Technology Solutions Stock Up 1.9%

The firm has a market capitalization of $28.14 billion, a PE ratio of 11.13, a price-to-earnings-growth ratio of 1.15 and a beta of 0.86. The company has a current ratio of 2.18, a quick ratio of 2.18 and a debt-to-equity ratio of 0.11. The firm has a 50-day moving average of $60.13 and a two-hundred day moving average of $54.34.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued 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). The business had revenue of $5.48 billion during the quarter, compared to analysts’ expectations of $5.48 billion. Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The business’s revenue was up 4.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.31 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. On average, equities research analysts forecast that Cognizant Technology Solutions Corporation will post 5.74 EPS for the current year.

Cognizant Technology Solutions Announces Dividend

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

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CTSH. Assenagon Asset Management S.A. grew its holdings in shares of Cognizant Technology Solutions by 925.5% in the 2nd quarter. Assenagon Asset Management S.A. now owns 3,652,358 shares of the information technology service provider’s stock valued at $141,456,000 after buying an additional 3,296,205 shares during the period. Pzena Investment Management LLC increased its position in shares of Cognizant Technology Solutions by 14.9% during the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock worth $1,243,096,000 after acquiring an additional 2,633,683 shares in the last quarter. Artemis Investment Management LLP raised its holdings in shares of Cognizant Technology Solutions by 289.6% during the third quarter. Artemis Investment Management LLP now owns 2,905,584 shares of the information technology service provider’s stock worth $166,897,000 after acquiring an additional 2,159,704 shares during the period. Lazard Asset Management LLC lifted its position in Cognizant Technology Solutions by 752.1% in the 1st quarter. Lazard Asset Management LLC now owns 1,317,166 shares of the information technology service provider’s stock valued at $80,808,000 after acquiring an additional 1,162,580 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Cognizant Technology Solutions during the 2nd quarter worth about $33,117,000. 92.44% of the stock is currently 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.