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

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has been assigned an average rating of “Hold” from the twenty-two analysts that are currently covering the company, MarketBeat.com reports. Twelve equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $90.1667.

Several research firms have commented on CTSH. Royal Bank Of Canada upped their price objective on Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a “sector perform” rating in a research note on Thursday, February 5th. Guggenheim reissued a “buy” rating and issued a $100.00 target price (up previously from $95.00) on shares of Cognizant Technology Solutions in a report on Wednesday, January 28th. TD Cowen reaffirmed a “hold” rating and set a $85.00 price target (up from $84.00) on shares of Cognizant Technology Solutions in a report on Thursday, February 5th. Mizuho set a $87.00 price objective on shares of Cognizant Technology Solutions in a research report on Monday, February 9th. Finally, Susquehanna restated a “positive” rating and set a $98.00 price objective on shares of Cognizant Technology Solutions in a research report on Friday, January 23rd.

Cognizant Technology Solutions Price Performance

CTSH stock opened at $65.03 on Friday. The company has a current ratio of 2.14, a quick ratio of 2.14 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $31.39 billion, a P/E ratio of 14.29, a PEG ratio of 1.41 and a beta of 0.95. The business has a 50 day simple moving average of $80.36 and a 200-day simple moving average of $74.57. Cognizant Technology Solutions has a twelve month low of $63.83 and a twelve month high of $87.54.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 EPS for the quarter, beating the consensus estimate of $1.32 by $0.03. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. The firm had revenue of $5.33 billion during the quarter, compared to the consensus estimate of $5.31 billion. During the same quarter in the prior year, the firm earned $1.21 EPS. Cognizant Technology Solutions’s revenue for the quarter was up 4.9% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. As a group, equities analysts anticipate that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, February 26th. Investors of record on Wednesday, February 18th will be issued a dividend of $0.33 per share. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. This represents a $1.32 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Wednesday, February 18th. Cognizant Technology Solutions’s dividend payout ratio is currently 29.01%.

Insiders Place Their Bets

In other Cognizant Technology Solutions news, insider Surya Gummadi sold 1,728 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total transaction of $143,527.68. Following the transaction, the insider owned 25,641 shares in the company, valued at approximately $2,129,741.46. The trade was a 6.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Ravi Kumar Singisetti sold 2,950 shares of the firm’s stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $85.06, for a total value of $250,927.00. Following the completion of the sale, the chief executive officer directly owned 75,209 shares of the company’s stock, valued at $6,397,277.54. This represents a 3.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 29,434 shares of company stock worth $2,460,809 over the last quarter. 0.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently made changes to their positions in CTSH. Flagship Harbor Advisors LLC purchased a new stake in Cognizant Technology Solutions during the fourth quarter worth about $28,000. Physician Wealth Advisors Inc. increased its holdings in Cognizant Technology Solutions by 165.1% in 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 in the last quarter. Lodestone Wealth Management LLC acquired a new stake in shares of Cognizant Technology Solutions during the 4th quarter valued at approximately $28,000. Prosperity Bancshares Inc purchased a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $29,000. Finally, NewSquare Capital LLC grew its holdings in shares of Cognizant Technology Solutions by 71.8% in the 2nd quarter. NewSquare Capital LLC now owns 366 shares of the information technology service provider’s stock worth $29,000 after acquiring an additional 153 shares during the period. 92.44% of the stock is owned by institutional investors and hedge funds.

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.