Ethic Inc. Reduces Position in Cognizant Technology Solutions Co. (NASDAQ:CTSH)

Ethic Inc. cut its stake in shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH) by 2.3% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 71,881 shares of the information technology service provider’s stock after selling 1,691 shares during the quarter. Ethic Inc.’s holdings in Cognizant Technology Solutions were worth $5,528,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. CGN Advisors LLC purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter worth about $1,294,000. ICICI Prudential Asset Management Co Ltd increased its holdings in Cognizant Technology Solutions by 50.7% in the 4th quarter. ICICI Prudential Asset Management Co Ltd now owns 429,660 shares of the information technology service provider’s stock valued at $33,041,000 after acquiring an additional 144,535 shares during the last quarter. Todd Asset Management LLC lifted its stake in Cognizant Technology Solutions by 24.4% in the 4th quarter. Todd Asset Management LLC now owns 436,509 shares of the information technology service provider’s stock worth $33,568,000 after purchasing an additional 85,539 shares in the last quarter. Matthews International Capital Management LLC boosted its holdings in shares of Cognizant Technology Solutions by 52.0% during the 4th quarter. Matthews International Capital Management LLC now owns 50,108 shares of the information technology service provider’s stock valued at $3,853,000 after purchasing an additional 17,134 shares during the last quarter. Finally, Retirement Systems of Alabama grew its position in shares of Cognizant Technology Solutions by 2.7% during the fourth quarter. Retirement Systems of Alabama now owns 1,219,380 shares of the information technology service provider’s stock valued at $93,770,000 after purchasing an additional 31,530 shares in the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Stock Performance

Shares of CTSH stock opened at $79.16 on Friday. Cognizant Technology Solutions Co. has a 52-week low of $63.79 and a 52-week high of $90.82. The company’s 50 day moving average is $75.23 and its 200 day moving average is $78.60. The firm has a market cap of $39.15 billion, a price-to-earnings ratio of 17.55, a PEG ratio of 2.11 and a beta of 0.93. The company has a quick ratio of 2.09, a current ratio of 2.09 and a debt-to-equity ratio of 0.06.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Wednesday, April 30th. The information technology service provider reported $1.23 EPS for the quarter, topping the consensus estimate of $1.20 by $0.03. Cognizant Technology Solutions had a net margin of 11.35% and a return on equity of 16.78%. The firm had revenue of $5.12 billion during the quarter, compared to analyst estimates of $5.06 billion. During the same quarter in the previous year, the business posted $1.12 EPS. Cognizant Technology Solutions’s revenue was up 7.5% on a year-over-year basis. On average, sell-side analysts anticipate that Cognizant Technology Solutions Co. will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 28th. Shareholders of record on Monday, May 19th will be issued a $0.31 dividend. The ex-dividend date is Monday, May 19th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.57%. Cognizant Technology Solutions’s dividend payout ratio is currently 26.11%.

Cognizant Technology Solutions announced that its board has authorized a stock buyback plan on Tuesday, March 25th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the information technology service provider to reacquire up to 5.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

CTSH has been the subject of a number of research reports. JPMorgan Chase & Co. dropped their price target on Cognizant Technology Solutions from $92.00 to $81.00 and set a “neutral” rating for the company in a research note on Tuesday, April 29th. Guggenheim reissued a “neutral” rating on shares of Cognizant Technology Solutions in a report on Wednesday, April 23rd. BMO Capital Markets upped their price target on shares of Cognizant Technology Solutions from $88.00 to $94.00 and gave the company a “market perform” rating in a research note on Thursday, February 6th. StockNews.com raised shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a research note on Thursday, February 6th. Finally, Susquehanna upgraded Cognizant Technology Solutions from a “neutral” rating to a “positive” rating and increased their price target for the company from $77.00 to $90.00 in a report on Thursday, May 1st. Fifteen equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $83.87.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.