Zacks Investment Research upgraded shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a hold rating to a buy rating in a research report report published on Tuesday morning. The firm currently has $80.00 target price on the information technology service provider’s stock.
According to Zacks, “Cognizant shares have outperformed the industry in the past one year. Growth can be attributed to the company's significant exposure to the fast-growing verticals like Financial Services and Healthcare. Higher demand from payer and top-tier consulting clients in the healthcare segment will help to sustain the growth momentum. The company’s ability to harness the ongoing digital transition is a tailwind. The company is also significantly benefiting from accretive acquisitions. The extensive share repurchase program is another positive. Cognizant has also gained deep industry expertise and knowledge of the domains through partnerships with top firms like Microsoft and SAP. However, the company faces significant geographic, domain and customer concentration risks which can negatively impact its business. Besides, stiff competition in the IT services market remains a concern.”
A number of other analysts also recently weighed in on CTSH. Royal Bank of Canada reiterated a buy rating and set a $77.00 target price on shares of Cognizant Technology Solutions in a research report on Wednesday, September 6th. KeyCorp reiterated a buy rating and set a $79.00 target price on shares of Cognizant Technology Solutions in a research report on Friday, September 8th. Robert W. Baird reiterated a buy rating and set a $80.00 target price on shares of Cognizant Technology Solutions in a research report on Sunday, September 10th. Bank of America reiterated a buy rating and set a $86.00 target price on shares of Cognizant Technology Solutions in a research report on Tuesday, September 12th. Finally, Wedbush reiterated an outperform rating on shares of Cognizant Technology Solutions in a research report on Monday, September 18th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, twenty have issued a buy rating and two have issued a strong buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus price target of $81.68.
Cognizant Technology Solutions (NASDAQ CTSH) traded up $1.13 during trading hours on Tuesday, hitting $72.68. The stock had a trading volume of 3,444,300 shares, compared to its average volume of 3,609,933. The company has a market cap of $43,120.00, a P/E ratio of 22.50, a price-to-earnings-growth ratio of 1.37 and a beta of 1.08. The company has a current ratio of 3.29, a quick ratio of 3.29 and a debt-to-equity ratio of 0.07. Cognizant Technology Solutions has a 1 year low of $51.52 and a 1 year high of $76.51.
Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, November 1st. The information technology service provider reported $0.98 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.13. The firm had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.77 billion. Cognizant Technology Solutions had a return on equity of 18.94% and a net margin of 13.42%. The company’s revenue was up 9.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.86 EPS. analysts expect that Cognizant Technology Solutions will post 3.35 EPS for the current fiscal year.
In other Cognizant Technology Solutions news, insider Sean Middleton sold 1,278 shares of the stock in a transaction dated Thursday, December 7th. The stock was sold at an average price of $71.36, for a total value of $91,198.08. Following the completion of the transaction, the insider now directly owns 3,366 shares in the company, valued at $240,197.76. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP James Patrick Lennox sold 1,325 shares of the stock in a transaction dated Tuesday, December 5th. The shares were sold at an average price of $70.77, for a total value of $93,770.25. Following the completion of the transaction, the executive vice president now owns 9,817 shares of the company’s stock, valued at $694,749.09. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 569,476 shares of company stock valued at $41,071,682. 1.08% of the stock is owned by corporate insiders.
A number of institutional investors have recently bought and sold shares of CTSH. Acrospire Investment Management LLC raised its position in Cognizant Technology Solutions by 92.6% in the second quarter. Acrospire Investment Management LLC now owns 1,664 shares of the information technology service provider’s stock valued at $110,000 after purchasing an additional 800 shares during the last quarter. Bank of Nova Scotia Trust Co. acquired a new stake in shares of Cognizant Technology Solutions in the third quarter valued at about $121,000. WFG Advisors LP increased its stake in shares of Cognizant Technology Solutions by 46.4% in the second quarter. WFG Advisors LP now owns 1,958 shares of the information technology service provider’s stock valued at $130,000 after buying an additional 621 shares during the period. Krilogy Financial LLC acquired a new stake in shares of Cognizant Technology Solutions in the second quarter valued at about $137,000. Finally, BB&T Investment Services Inc. increased its stake in shares of Cognizant Technology Solutions by 86.8% in the third quarter. BB&T Investment Services Inc. now owns 2,176 shares of the information technology service provider’s stock valued at $141,000 after buying an additional 1,011 shares during the period. Hedge funds and other institutional investors own 85.98% of the company’s stock.
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About Cognizant Technology Solutions
Cognizant Technology Solutions Corporation is a professional services company. The Company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. The Financial Services segment includes customers providing banking/transaction processing, capital markets and insurance services.
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