Cognizant Technology Solutions (NASDAQ:CTSH) Sets New 1-Year Low – Here’s Why

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s stock price hit a new 52-week low on Tuesday . The company traded as low as $60.89 and last traded at $61.13, with a volume of 10482079 shares. The stock had previously closed at $65.03.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. Mizuho set a $87.00 price objective on shares of Cognizant Technology Solutions in a research note on Monday, February 9th. Morgan Stanley raised their price target on Cognizant Technology Solutions from $80.00 to $82.00 and gave the stock an “equal weight” rating in a report on Thursday, February 5th. Weiss Ratings upgraded Cognizant Technology Solutions from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, February 6th. William Blair upgraded Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a research note on Friday, November 21st. Finally, BMO Capital Markets set a $83.00 price target on shares of Cognizant Technology Solutions in a report on Thursday, February 12th. Ten research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $90.17.

Cognizant Technology Solutions Stock Up 2.5%

The firm’s fifty day moving average is $79.00 and its two-hundred day moving average is $74.42. The firm has a market cap of $29.95 billion, a price-to-earnings ratio of 13.70, a P/E/G ratio of 1.32 and a beta of 0.95. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.14 and a quick ratio of 2.14.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 EPS for the quarter, topping analysts’ consensus estimates of $1.32 by $0.03. The company had revenue of $5.33 billion for the quarter, compared to the consensus estimate of $5.31 billion. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. Cognizant Technology Solutions’s revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.21 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. On average, sell-side analysts expect that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, February 26th. Shareholders of record on Wednesday, February 18th will be paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Wednesday, February 18th. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. Cognizant Technology Solutions’s dividend payout ratio is 29.01%.

Insider Transactions at Cognizant Technology Solutions

In other news, insider Surya Gummadi sold 1,728 shares of the business’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total value of $143,527.68. Following the sale, the insider owned 25,641 shares of the company’s stock, valued at approximately $2,129,741.46. The trade was a 6.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Michael Patsalos-Fox sold 7,000 shares of the business’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $83.52, for a total transaction of $584,640.00. Following the completion of the sale, the director owned 47,729 shares in the company, valued at approximately $3,986,326.08. This trade represents a 12.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 29,434 shares of company stock valued at $2,460,809 in the last quarter. Company insiders own 0.32% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in CTSH. State Street Corp boosted its holdings in shares of Cognizant Technology Solutions by 0.6% during the 2nd quarter. State Street Corp now owns 25,381,572 shares of the information technology service provider’s stock worth $1,980,524,000 after buying an additional 157,427 shares during the period. AustralianSuper Pty Ltd acquired a new position in shares of Cognizant Technology Solutions in the third quarter valued at approximately $4,422,000. Thrivent Financial for Lutherans lifted its holdings in Cognizant Technology Solutions by 60.9% during the 2nd quarter. Thrivent Financial for Lutherans now owns 39,474 shares of the information technology service provider’s stock worth $3,079,000 after purchasing an additional 14,946 shares during the last quarter. Summit Global Investments grew its holdings in Cognizant Technology Solutions by 245.1% in the 2nd quarter. Summit Global Investments now owns 35,588 shares of the information technology service provider’s stock valued at $2,777,000 after buying an additional 25,276 shares in the last quarter. Finally, Alps Advisors Inc. lifted its holdings in shares of Cognizant Technology Solutions by 16.5% during the third quarter. Alps Advisors Inc. now owns 306,078 shares of the information technology service provider’s stock worth $20,529,000 after buying an additional 43,252 shares in the last quarter. 92.44% of the stock is 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.