Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Given Average Recommendation of “Hold” by Brokerages

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) have earned an average recommendation of “Hold” from the twenty-two ratings firms that are covering the company, MarketBeat Ratings reports. Thirteen investment analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $85.8421.

CTSH has been the topic of a number of research analyst reports. Robert W. Baird set a $72.00 price objective on shares of Cognizant Technology Solutions and gave the company a “neutral” rating in a report on Friday. Berenberg Bank set a $107.00 price objective on Cognizant Technology Solutions and gave the company a “buy” rating in a report on Thursday, January 22nd. Wedbush assumed coverage on Cognizant Technology Solutions in a report on Thursday. They issued a “neutral” rating and a $61.00 price objective for the company. TD Cowen decreased their price objective on Cognizant Technology Solutions from $85.00 to $71.00 and set a “hold” rating for the company in a report on Friday, March 13th. Finally, Argus raised Cognizant Technology Solutions to a “hold” rating in a report on Tuesday, February 10th.

Insider Activity

In other news, insider Surya Gummadi sold 1,728 shares of the stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $83.06, for a total transaction of $143,527.68. Following the sale, the insider directly owned 25,641 shares of the company’s stock, valued at $2,129,741.46. This represents a 6.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.32% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of the company. Checchi Capital Advisers LLC boosted its stake in shares of Cognizant Technology Solutions by 3.4% during the 4th quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider’s stock worth $320,000 after acquiring an additional 127 shares in the last quarter. Unison Advisors LLC boosted its stake in shares of Cognizant Technology Solutions by 0.5% during the 4th quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider’s stock worth $2,498,000 after acquiring an additional 138 shares in the last quarter. TD Waterhouse Canada Inc. boosted its stake in shares of Cognizant Technology Solutions by 7.2% during the 4th quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider’s stock worth $177,000 after acquiring an additional 143 shares in the last quarter. Security National Bank of SO Dak boosted its stake in shares of Cognizant Technology Solutions by 0.6% during the 3rd quarter. Security National Bank of SO Dak now owns 24,785 shares of the information technology service provider’s stock worth $1,662,000 after acquiring an additional 150 shares in the last quarter. Finally, Haven Private LLC boosted its stake in shares of Cognizant Technology Solutions by 1.9% during the 3rd quarter. Haven Private LLC now owns 8,451 shares of the information technology service provider’s stock worth $567,000 after acquiring an additional 157 shares in the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Price Performance

Shares of CTSH opened at $57.92 on Friday. The firm has a market capitalization of $27.70 billion, a PE ratio of 12.73, a price-to-earnings-growth ratio of 1.26 and a beta of 0.98. 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 has a 1-year low of $57.39 and a 1-year high of $87.03. The company’s fifty day moving average price is $64.76 and its 200-day moving average price is $72.55.

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

Cognizant Technology Solutions Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Wednesday, February 18th were paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was 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 currently 29.01%.

About Cognizant Technology Solutions

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.