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

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has earned an average rating of “Hold” from the twenty-four ratings firms that are currently covering the stock, Marketbeat.com reports. Fourteen investment analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1-year price target among brokers that have covered the stock in the last year is $64.2609.

CTSH has been the topic of a number of recent research reports. Robert W. Baird lowered their target price on Cognizant Technology Solutions from $72.00 to $55.00 and set a “neutral” rating on the stock in a report on Friday, July 10th. Dbs Bank lowered their price objective on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a research note on Thursday, May 7th. Weiss Ratings lowered shares of Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Truist Financial began coverage on shares of Cognizant Technology Solutions in a research report on Monday, June 1st. They issued a “hold” rating and a $66.00 price target on the stock. Finally, JPMorgan Chase & Co. cut their price objective on shares of Cognizant Technology Solutions from $92.00 to $74.00 and set an “overweight” rating for the company in a research report on Tuesday, April 28th.

Hedge Funds Weigh In On Cognizant Technology Solutions

Hedge funds have recently modified their holdings of the company. Pzena Investment Management LLC lifted its stake in shares of Cognizant Technology Solutions by 14.9% during the 1st quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock valued at $1,243,096,000 after buying an additional 2,633,683 shares in the last quarter. Invesco Ltd. raised its holdings in Cognizant Technology Solutions by 8.6% during the third quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider’s stock valued at $840,669,000 after acquiring an additional 987,395 shares during the period. Norges Bank purchased a new position in shares of Cognizant Technology Solutions in the fourth quarter valued at about $690,959,000. GQG Partners LLC bought a new position in shares of Cognizant Technology Solutions in the fourth quarter worth about $673,651,000. Finally, FIL Ltd grew its position in shares of Cognizant Technology Solutions by 46.6% during the fourth quarter. FIL Ltd now owns 6,680,508 shares of the information technology service provider’s stock worth $554,482,000 after purchasing an additional 2,122,600 shares in the last quarter. 92.44% of the stock is currently owned by institutional investors.

Cognizant Technology Solutions Stock Down 0.3%

CTSH opened at $44.64 on Tuesday. The stock has a market capitalization of $21.15 billion, a price-to-earnings ratio of 9.70, a PEG ratio of 0.98 and a beta of 0.87. The firm has a 50 day moving average price of $47.37 and a 200-day moving average price of $60.60. Cognizant Technology Solutions has a twelve month low of $37.08 and a twelve month high of $87.03. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The business had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The firm’s revenue was up 5.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Equities research analysts forecast that Cognizant Technology Solutions will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were paid a $0.33 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.32 annualized dividend and a dividend yield of 3.0%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 28.70%.

Cognizant Technology Solutions declared that its board has approved a stock repurchase program on Monday, May 18th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology service provider to buy up to 9% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its shares are undervalued.

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.