Cognizant Technology Solutions (NASDAQ:CTSH) Price Target Cut to $55.00 by Analysts at JPMorgan Chase & Co.

Cognizant Technology Solutions (NASDAQ:CTSH) had its target price reduced by JPMorgan Chase & Co. from $74.00 to $55.00 in a research note released on Friday morning,Benzinga reports. They currently have an overweight rating on the information technology service provider’s stock.

Several other research analysts have also recently weighed in on the stock. TD Cowen lowered their price target on shares of Cognizant Technology Solutions from $62.00 to $47.00 and set a “hold” rating on the stock in a report on Friday, June 26th. Citigroup dropped their price target on Cognizant Technology Solutions from $55.00 to $45.00 and set a “neutral” rating for the company in a report on Monday, July 13th. Susquehanna reduced their price target on Cognizant Technology Solutions from $98.00 to $88.00 and set a “positive” rating for the company in a research note on Friday, May 1st. Royal Bank Of Canada set a $55.00 price objective on Cognizant Technology Solutions in a report on Friday. Finally, Berenberg Bank set a $59.00 price objective on Cognizant Technology Solutions and gave the stock a “hold” rating in a research report on Wednesday, June 17th. Ten research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $62.00.

Cognizant Technology Solutions Trading Up 5.7%

NASDAQ:CTSH opened at $45.45 on Friday. 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 has a twelve month low of $37.08 and a twelve month high of $87.03. The business has a 50 day moving average price of $47.14 and a two-hundred day moving average price of $59.67. The company has a market cap of $21.54 billion, a P/E ratio of 9.88, a price-to-earnings-growth ratio of 0.94 and a beta of 0.87.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The company had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same quarter in the prior year, the firm posted $1.23 EPS. The firm’s revenue for the quarter was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, analysts expect that Cognizant Technology Solutions will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were given a dividend of $0.33 per share. The ex-dividend date was Monday, May 18th. This represents a $1.32 annualized dividend and a dividend yield of 2.9%. Cognizant Technology Solutions’s dividend payout ratio is presently 28.70%.

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

Hedge Funds Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently modified their holdings of CTSH. JPL Wealth Management LLC bought a new position in shares of Cognizant Technology Solutions in the 3rd quarter worth $25,000. Lodestone Wealth Management LLC purchased a new stake in Cognizant Technology Solutions during the fourth quarter worth about $28,000. Flagship Harbor Advisors LLC bought a new position in Cognizant Technology Solutions during the fourth quarter worth about $28,000. Physician Wealth Advisors Inc. increased its position in shares of Cognizant Technology Solutions by 165.1% during the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock valued at $28,000 after buying an additional 213 shares during the period. Finally, Prosperity Bancshares Inc purchased a new stake in Cognizant Technology Solutions in the fourth quarter valued at approximately $29,000. 92.44% of the stock is currently owned by institutional investors.

More Cognizant Technology Solutions News

Here are the key news stories impacting Cognizant Technology Solutions this week:

• Positive Sentiment: Cognizant announced a strategic partnership with Gulf Edge to accelerate enterprise AI adoption in Southeast Asia, including Thailand. The deal highlights CTSH’s push into higher-growth AI services and could support longer-term revenue opportunities. Article Title
• Positive Sentiment: Investors appear to be buying ahead of Cognizant’s second-quarter earnings report on July 29, leaning on the company’s first-quarter momentum, which included revenue growth, strong bookings, and improved margin guidance. Article Title
• Positive Sentiment: Wall Street still broadly remains constructive: JPMorgan cut its price target to $55 from $74, but kept an overweight rating, while other recent analyst calls have been positive. That suggests expectations may be reset rather than deteriorating. Article Title
• Neutral Sentiment: Short-interest data did not show a meaningful change, so there is little evidence that the latest move is being driven by a short squeeze or bearish positioning.
• Negative Sentiment: The JPMorgan target cut reflects lower near-term upside expectations, and the stock remains well below its prior highs, which may temper enthusiasm if upcoming earnings disappoint.
• Negative Sentiment: Recent insider selling and mixed institutional ownership trends could be a modest headwind for sentiment, even though these factors do not appear to be the main driver today.

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.