Cognizant Technology Solutions (CTSH) Rating Increased to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a sell rating to a hold rating in a research note published on Friday morning.
According to Zacks, “Cognizant is benefiting from its significant exposure to the fast-growing verticals like financial services and healthcare. The company is gaining due to domain expertise as well as its ability to harness the ongoing digital transition. It is also significantly gaining from accretive acquisitions and aggressive share repurchase. However, the company faces geographic, domain and customer concentration risks. Further, lackluster spending by large banks in the financial services sector and stiff competition in the IT services market remains a concern. Shares have underperformed the industry in the past year.”
CTSH has been the topic of a number of other research reports. HSBC raised Cognizant Technology Solutions from a hold rating to a buy rating in a report on Tuesday, September 18th. Cowen lowered Cognizant Technology Solutions from an outperform rating to a market perform rating and set a $75.00 price target on the stock. in a report on Monday, November 26th. Bank of America lowered their price target on Cognizant Technology Solutions from $81.00 to $68.00 and set an underperform rating on the stock in a report on Friday, November 2nd. BMO Capital Markets lowered Cognizant Technology Solutions from an outperform rating to a market perform rating and set a $74.00 price target on the stock. in a report on Wednesday, October 31st. Finally, KeyCorp lowered their price target on Cognizant Technology Solutions from $89.00 to $79.00 and set an overweight rating on the stock in a report on Wednesday, October 31st. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of Buy and a consensus target price of $81.81.
Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Tuesday, October 30th. The information technology service provider reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.06. The company had revenue of $4.08 billion for the quarter, compared to analyst estimates of $4.08 billion. Cognizant Technology Solutions had a return on equity of 22.54% and a net margin of 9.07%. The business’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.98 earnings per share. Analysts predict that Cognizant Technology Solutions will post 4.12 earnings per share for the current year.
In related news, General Counsel Matthew W. Friedrich sold 449 shares of the firm’s stock in a transaction dated Friday, December 14th. The shares were sold at an average price of $68.30, for a total value of $30,666.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Allen Shaheen sold 1,232 shares of the firm’s stock in a transaction dated Tuesday, December 4th. The shares were sold at an average price of $71.51, for a total transaction of $88,100.32. Following the completion of the sale, the executive vice president now owns 6,120 shares of the company’s stock, valued at approximately $437,641.20. The disclosure for this sale can be found here. In the last 90 days, insiders sold 25,357 shares of company stock valued at $1,687,955. 0.60% of the stock is owned by insiders.
Large investors have recently made changes to their positions in the stock. Van ECK Associates Corp purchased a new position in shares of Cognizant Technology Solutions during the second quarter valued at approximately $631,000. OppenheimerFunds Inc. increased its stake in shares of Cognizant Technology Solutions by 55.3% during the second quarter. OppenheimerFunds Inc. now owns 25,863 shares of the information technology service provider’s stock valued at $2,043,000 after buying an additional 9,208 shares during the period. Natixis purchased a new position in shares of Cognizant Technology Solutions during the second quarter valued at approximately $8,902,000. Macquarie Group Ltd. increased its stake in shares of Cognizant Technology Solutions by 34.5% during the second quarter. Macquarie Group Ltd. now owns 85,352 shares of the information technology service provider’s stock valued at $6,742,000 after buying an additional 21,894 shares during the period. Finally, Colony Group LLC increased its stake in shares of Cognizant Technology Solutions by 62.0% during the second quarter. Colony Group LLC now owns 4,095 shares of the information technology service provider’s stock valued at $323,000 after buying an additional 1,567 shares during the period. Hedge funds and other institutional investors own 86.19% of the company’s stock.
About Cognizant Technology Solutions
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers business, process, operations, and technology consulting services; application design and development, and systems integration services; application testing, consulting, and engineering services; and enterprise information management services.
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