Zacks Investment Research Upgrades Cognizant Technology Solutions (NASDAQ:CTSH) to Hold

Cognizant Technology Solutions (NASDAQ:CTSHGet Rating) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Monday, Zacks.com reports. The brokerage presently has a $79.00 price target on the information technology service provider’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 2.80% from the stock’s previous close.

According to Zacks, “Cognizant reported strong first-quarter 2022 results, which reflected robust performances across segments, including Healthcare, Products and Resources as well as Communications, Media and Technology. Moreover, acquisitions strengthened the company’s digital capabilities and international prospects. It is witnessing strength in high-quality, lower-cost technology services, including cloud and digital engineering services, and increased demand for interactive, IoT and analytics solutions. The company raised 2022 revenue guidance. Cognizant expects the operating margin to expand sequentially in the second and third quarters and to be lower than the expected full-year guidance in the fourth quarter. However, the ongoing stiff competition in the IT services market is a major concern. Cognizant’s shares have outperformed the industry year to date.”

A number of other brokerages have also weighed in on CTSH. Barclays increased their price target on Cognizant Technology Solutions from $78.00 to $85.00 and gave the stock an “underweight” rating in a research note on Monday, February 7th. Citigroup decreased their price objective on shares of Cognizant Technology Solutions from $95.00 to $88.00 in a research report on Thursday. UBS Group raised shares of Cognizant Technology Solutions from a “sell” rating to a “neutral” rating and increased their price target for the stock from $58.50 to $89.00 in a research report on Thursday, January 20th. Cowen cut their target price on shares of Cognizant Technology Solutions from $98.00 to $95.00 in a report on Monday. Finally, BMO Capital Markets raised their price objective on shares of Cognizant Technology Solutions from $92.00 to $100.00 in a research note on Thursday, February 3rd. One research analyst has rated the stock with a sell rating, five have given a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock has an average rating of “Buy” and a consensus price target of $91.69.

NASDAQ:CTSH traded up $1.33 during midday trading on Monday, reaching $76.85. The company had a trading volume of 62,496 shares, compared to its average volume of 3,134,277. The firm has a market capitalization of $40.31 billion, a price-to-earnings ratio of 18.43, a PEG ratio of 1.39 and a beta of 1.10. The company has a current ratio of 2.22, a quick ratio of 2.08 and a debt-to-equity ratio of 0.05. The stock’s fifty day simple moving average is $86.94 and its 200-day simple moving average is $85.03. Cognizant Technology Solutions has a 12-month low of $66.19 and a 12-month high of $93.47.

Cognizant Technology Solutions (NASDAQ:CTSHGet Rating) last issued its quarterly earnings results on Wednesday, May 4th. The information technology service provider reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.04. Cognizant Technology Solutions had a return on equity of 19.07% and a net margin of 11.59%. The firm had revenue of $4.83 billion for the quarter, compared to analysts’ expectations of $4.83 billion. During the same quarter in the previous year, the firm posted $0.97 EPS. The firm’s revenue for the quarter was up 9.7% on a year-over-year basis. As a group, sell-side analysts expect that Cognizant Technology Solutions will post 4.51 EPS for the current year.

In other Cognizant Technology Solutions news, insider Rajesh Nambiar sold 5,000 shares of the company’s stock in a transaction dated Friday, February 11th. The shares were sold at an average price of $90.50, for a total transaction of $452,500.00. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Leo S. Jr. Mackay sold 4,778 shares of the company’s stock in a transaction dated Monday, March 7th. The shares were sold at an average price of $88.52, for a total transaction of $422,948.56. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 16,149 shares of company stock valued at $1,434,568. Company insiders own 0.31% of the company’s stock.

Several hedge funds have recently bought and sold shares of the stock. GeoWealth Management LLC purchased a new stake in shares of Cognizant Technology Solutions during the third quarter valued at approximately $26,000. MV Capital Management Inc. raised its holdings in Cognizant Technology Solutions by 94.8% in the fourth quarter. MV Capital Management Inc. now owns 302 shares of the information technology service provider’s stock worth $27,000 after purchasing an additional 147 shares in the last quarter. Cornerstone Advisory LLC bought a new position in Cognizant Technology Solutions in the fourth quarter worth $27,000. Hardy Reed LLC bought a new position in shares of Cognizant Technology Solutions during the first quarter valued at $27,000. Finally, Fieldpoint Private Securities LLC increased its holdings in shares of Cognizant Technology Solutions by 475.4% during the fourth quarter. Fieldpoint Private Securities LLC now owns 397 shares of the information technology service provider’s stock valued at $35,000 after acquiring an additional 328 shares in the last quarter. Institutional investors own 90.73% of the company’s stock.

Cognizant Technology Solutions Company Profile (Get Rating)

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; Healthcare; Products and Resources; and Communications, Media and Technology.

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