Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives Consensus Rating of “Hold” from Analysts

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has been assigned a consensus rating of “Hold” from the twenty-three brokerages that are currently covering the firm, MarketBeat reports. Thirteen research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $72.6818.

A number of research analysts recently weighed in on the stock. Wedbush decreased their target price on shares of Cognizant Technology Solutions from $61.00 to $56.00 and set a “neutral” rating for the company in a research report on Thursday, April 30th. Mizuho reduced their price objective on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating for the company in a research note on Wednesday, May 6th. Argus upgraded Cognizant Technology Solutions to a “hold” rating in a report on Tuesday, February 10th. Nomura upped their target price on Cognizant Technology Solutions from $92.00 to $93.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. Finally, BMO Capital Markets reduced their price target on Cognizant Technology Solutions from $83.00 to $63.00 in a research report on Thursday, April 30th.

Institutional Investors Weigh In On Cognizant Technology Solutions

Large investors have recently made changes to their positions in the stock. Brighton Jones LLC bought a new stake in Cognizant Technology Solutions during the fourth quarter worth $214,000. Geneos Wealth Management Inc. raised its position in Cognizant Technology Solutions by 118.8% during the first quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider’s stock worth $44,000 after acquiring an additional 309 shares in the last quarter. Acadian Asset Management LLC acquired a new stake in Cognizant Technology Solutions in the 1st quarter valued at about $142,000. Cresset Asset Management LLC lifted its stake in Cognizant Technology Solutions by 11.4% in the 2nd quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider’s stock valued at $715,000 after purchasing an additional 935 shares during the last quarter. Finally, Jump Financial LLC lifted its stake in Cognizant Technology Solutions by 231.4% in the 2nd quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider’s stock valued at $2,315,000 after purchasing an additional 20,716 shares during the last quarter. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions Price Performance

CTSH stock opened at $53.21 on Monday. The stock has a 50-day moving average price of $55.65 and a two-hundred day moving average price of $68.46. The stock has a market cap of $25.21 billion, a PE ratio of 11.57, a price-to-earnings-growth ratio of 1.12 and a beta of 0.81. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions has a 1 year low of $45.48 and a 1 year high of $87.03.

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

Cognizant Technology Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.32 annualized dividend and a yield of 2.5%. Cognizant Technology Solutions’s dividend payout ratio is 28.70%.

Cognizant Technology Solutions announced that its board has approved a stock repurchase plan on Monday, May 18th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the information technology service provider to reacquire up to 9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

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.