Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Given Average Rating of “Hold” by Analysts

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) have been given a consensus recommendation of “Hold” by the twenty-four research firms that are presently covering the stock, MarketBeat Ratings reports. Fourteen investment analysts have rated the stock with a hold rating and ten have issued a buy rating on the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $61.3478.

A number of analysts have issued reports on the company. Daiwa Securities Group decreased their target price on Cognizant Technology Solutions from $65.00 to $42.00 and set a “neutral” rating for the company in a research report on Wednesday, June 24th. Weiss Ratings cut Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Morgan Stanley set a $44.00 price target on Cognizant Technology Solutions and gave the stock an “equal weight” rating in a research note on Tuesday, June 23rd. Nomura decreased their price objective on Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating for the company in a report on Wednesday, July 1st. Finally, TD Cowen lowered their price objective on Cognizant Technology Solutions from $62.00 to $47.00 and set a “hold” rating on the stock in a research note on Friday, June 26th.

Cognizant Technology Solutions Stock Up 3.5%

CTSH opened at $47.05 on Tuesday. Cognizant Technology Solutions has a twelve month low of $37.08 and a twelve month high of $87.03. The company’s 50-day moving average price is $47.05 and its two-hundred day moving average price is $59.25. The stock has a market cap of $22.30 billion, a price-to-earnings ratio of 10.23, a PEG ratio of 0.99 and a beta of 0.87. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04.

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

Cognizant Technology Solutions Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were paid a $0.33 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.32 annualized dividend and a dividend yield of 2.8%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is presently 28.70%.

Cognizant Technology Solutions declared that its board has authorized a stock repurchase program on Monday, May 18th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the information technology service provider to buy up to 9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

Institutional Trading of Cognizant Technology Solutions

A number of institutional investors have recently modified their holdings of the business. Flagship Harbor Advisors LLC purchased a new position in Cognizant Technology Solutions in the 4th quarter valued at approximately $28,000. Physician Wealth Advisors Inc. lifted its position in shares of Cognizant Technology Solutions by 165.1% during the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock worth $28,000 after acquiring an additional 213 shares in the last quarter. Lodestone Wealth Management LLC bought a new position in shares of Cognizant Technology Solutions in the fourth quarter worth $28,000. Prosperity Bancshares Inc bought a new position in shares of Cognizant Technology Solutions in the fourth quarter worth $29,000. Finally, Towne Trust Company N.A grew its position in shares of Cognizant Technology Solutions by 85.0% in the fourth quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider’s stock valued at $31,000 after purchasing an additional 170 shares in the last quarter. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Company Profile

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.