Cognizant Technology Solutions (NASDAQ:CTSH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “Cognizant’s growth can be attributed to its 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 benefiting from accretive acquisitions and share repurchase program. Cognizant has also gained deep industry expertise and knowledge of the domains through partnerships with top firms like Microsoft and SAP. Estimates have been stable lately ahead of the company’s Q4 earnings release. The company has mixed record of earnings surprises in recent quarters. 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 have also weighed in on the company. Barclays increased their target price on Cognizant Technology Solutions from $80.00 to $90.00 and gave the stock an “overweight” rating in a research note on Monday, October 30th. They noted that the move was a valuation call. Royal Bank of Canada reiterated a “buy” rating and issued a $77.00 target price on shares of Cognizant Technology Solutions in a research note on Sunday, October 8th. Robert W. Baird increased their target price on Cognizant Technology Solutions from $80.00 to $90.00 and gave the stock an “outperform” rating in a research note on Thursday, October 19th. Pivotal Research started coverage on Cognizant Technology Solutions in a research note on Wednesday, November 8th. They issued a “buy” rating and a $93.00 target price on the stock. Finally, BidaskClub lowered Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a research note on Tuesday, December 5th. One investment analyst has rated the stock with a sell rating, five have given a hold rating, twenty have issued a buy rating and two have given a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $81.75.
Shares of Cognizant Technology Solutions (NASDAQ CTSH) opened at $74.56 on Friday. The stock has a market capitalization of $43,963.93, a price-to-earnings ratio of 23.01, a P/E/G ratio of 1.43 and a beta of 1.08. Cognizant Technology Solutions has a 52-week low of $51.52 and a 52-week high of $76.51. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.29 and a quick ratio of 3.29.
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, topping analysts’ consensus estimates of $0.85 by $0.13. Cognizant Technology Solutions had a return on equity of 18.94% and a net margin of 13.42%. The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.77 billion. During the same quarter last year, the firm posted $0.86 earnings per share. The business’s revenue was up 9.1% compared to the same quarter last year. analysts anticipate that Cognizant Technology Solutions will post 3.35 EPS for the current year.
In other Cognizant Technology Solutions news, insider Sumithra Gomatam sold 3,163 shares of Cognizant Technology Solutions stock in a transaction dated Tuesday, October 31st. The stock was sold at an average price of $76.00, for a total value of $240,388.00. Following the transaction, the insider now owns 6,346 shares in the company, valued at $482,296. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Leo S. Jr. Mackay sold 14,247 shares of Cognizant Technology Solutions stock in a transaction dated Tuesday, November 7th. The shares were sold at an average price of $74.80, for a total value of $1,065,675.60. Following the completion of the transaction, the director now owns 12,577 shares in the company, valued at approximately $940,759.60. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 807,286 shares of company stock worth $58,679,209. Insiders own 1.08% of the company’s stock.
Institutional investors and hedge funds have recently bought and sold shares of the business. Pathstone Family Office LLC grew its stake in Cognizant Technology Solutions by 1,208.8% in the second quarter. Pathstone Family Office LLC now owns 1,479 shares of the information technology service provider’s stock valued at $2,485,000 after purchasing an additional 1,366 shares during the last quarter. Acrospire Investment Management LLC grew its stake 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. purchased a new position in Cognizant Technology Solutions in the third quarter valued at about $121,000. WFG Advisors LP grew its stake in 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 purchasing an additional 621 shares during the last quarter. Finally, Krilogy Financial LLC purchased a new position in Cognizant Technology Solutions in the second quarter valued at about $137,000. 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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