Guggenheim Upgrades Cognizant Technology Solutions (NASDAQ:CTSH) to “Buy”

Cognizant Technology Solutions (NASDAQ:CTSH) was upgraded by equities researchers at Guggenheim from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Friday, Marketbeat reports. The brokerage presently has a $90.00 target price on the information technology service provider’s stock. Guggenheim’s price target suggests a potential upside of 18.92% from the company’s previous close.

A number of other analysts also recently issued reports on CTSH. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $93.00 price target on shares of Cognizant Technology Solutions in a report on Wednesday, March 26th. TD Securities raised their price target on shares of Cognizant Technology Solutions from $77.00 to $79.00 and gave the company a “hold” rating in a report on Thursday, May 1st. Needham & Company LLC reaffirmed a “hold” rating on shares of Cognizant Technology Solutions in a report on Thursday, May 1st. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Cognizant Technology Solutions in a report on Thursday. They set a “hold” rating and a $80.00 price target on the stock. Finally, Robert W. Baird raised their price objective on shares of Cognizant Technology Solutions from $78.00 to $82.00 and gave the stock a “neutral” rating in a report on Thursday, May 1st. Thirteen equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $86.18.

Cognizant Technology Solutions Trading Up 0.2%

Shares of CTSH opened at $75.68 on Friday. The stock has a market capitalization of $37.31 billion, a P/E ratio of 15.93, a PEG ratio of 1.74 and a beta of 0.96. The company has a quick ratio of 2.22, a current ratio of 2.22 and a debt-to-equity ratio of 0.04. The firm has a fifty day simple moving average of $79.11 and a two-hundred day simple moving average of $78.71. Cognizant Technology Solutions has a twelve month low of $65.52 and a twelve month high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued 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 11.73% and a return on equity of 16.73%. The business had revenue of $5.12 billion during the quarter, compared to analyst estimates of $5.06 billion. During the same period in the prior year, the business earned $1.12 EPS. The company’s revenue for the quarter was up 7.5% on a year-over-year basis. On average, research analysts anticipate that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Cognizant Technology Solutions announced that its board has authorized a share buyback program on Tuesday, March 25th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the information technology service provider to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

Large investors have recently added to or reduced their stakes in the company. Park Square Financial Group LLC acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at about $36,000. Geneos Wealth Management Inc. increased its holdings in shares of 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 valued at $44,000 after acquiring an additional 309 shares in the last quarter. CoreCap Advisors LLC increased its holdings in shares of Cognizant Technology Solutions by 21.5% during the fourth quarter. CoreCap Advisors LLC now owns 711 shares of the information technology service provider’s stock valued at $55,000 after acquiring an additional 126 shares in the last quarter. Pinney & Scofield Inc. acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at about $55,000. Finally, Loomis Sayles & Co. L P acquired a new position in Cognizant Technology Solutions in the 4th quarter worth approximately $56,000. 92.44% of the stock is currently owned by institutional investors.

Cognizant Technology Solutions Company Profile

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.