According to Zacks, “Cognizant reported unimpressive first-quarter 2019 results. While revenues increased year over year, earnings declined. Sluggish growth from financial services segment due to weak spending by large banks negatively impacted the top line. Healthcare growth was muted due to the ongoing industry-wide consolidation. The company slashed 2019 guidance, expecting slower growth from both the segments for the rest of the year. Cognizant’s shares have underperformed the industry on a year-to-date basis. The company faces significant geographic, domain and customer-concentration risks. Further, stiff competition in the IT services market is a major concern.”
A number of other equities analysts have also recently weighed in on CTSH. CIBC reissued a market perform rating on shares of Cognizant Technology Solutions in a report on Friday, May 3rd. Cantor Fitzgerald reissued an overweight rating and set a $75.00 price objective (down from $87.00) on shares of Cognizant Technology Solutions in a report on Friday, May 3rd. Oppenheimer cut Cognizant Technology Solutions from an outperform rating to a market perform rating in a report on Friday, May 3rd. Goldman Sachs Group cut Cognizant Technology Solutions from a buy rating to a neutral rating and decreased their price objective for the company from $84.00 to $64.00 in a report on Friday, May 3rd. Finally, Wedbush cut Cognizant Technology Solutions from an outperform rating to a neutral rating and decreased their price objective for the company from $80.00 to $70.00 in a report on Friday, May 3rd. Five research analysts have rated the stock with a sell rating, sixteen have given a hold rating and eight have issued a buy rating to the company. Cognizant Technology Solutions presently has an average rating of Hold and an average target price of $75.55.
Shares of CTSH opened at $59.13 on Tuesday. The stock has a market cap of $33.99 billion, a PE ratio of 14.71, a price-to-earnings-growth ratio of 1.48 and a beta of 0.95. The company has a quick ratio of 3.12, a current ratio of 2.90 and a debt-to-equity ratio of 0.12. Cognizant Technology Solutions has a 12-month low of $57.47 and a 12-month high of $83.35.
Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Thursday, May 2nd. The information technology service provider reported $0.91 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.03 by ($0.12). The business had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.16 billion. Cognizant Technology Solutions had a net margin of 12.39% and a return on equity of 21.50%. The business’s revenue was up 5.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.94 EPS. On average, equities analysts forecast that Cognizant Technology Solutions will post 3.95 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Wednesday, May 22nd will be paid a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, May 21st. This represents a $0.80 dividend on an annualized basis and a yield of 1.35%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 19.90%.
In other news, EVP Allen Shaheen sold 396 shares of Cognizant Technology Solutions stock in a transaction that occurred on Monday, April 1st. The stock was sold at an average price of $73.80, for a total value of $29,224.80. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, President Rajeev Mehta sold 20,000 shares of Cognizant Technology Solutions stock in a transaction that occurred on Thursday, March 14th. The stock was sold at an average price of $71.50, for a total value of $1,430,000.00. Following the completion of the sale, the president now owns 39,457 shares in the company, valued at $2,821,175.50. The disclosure for this sale can be found here. Over the last quarter, insiders sold 47,954 shares of company stock worth $3,456,742. Corporate insiders own 0.56% of the company’s stock.
Several hedge funds have recently modified their holdings of CTSH. Acima Private Wealth LLC bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $29,000. Sontag Advisory LLC bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $30,000. Somerset Trust Co boosted its position in shares of Cognizant Technology Solutions by 152.0% during the first quarter. Somerset Trust Co now owns 494 shares of the information technology service provider’s stock valued at $36,000 after purchasing an additional 298 shares in the last quarter. Resources Investment Advisors Inc. boosted its position in shares of Cognizant Technology Solutions by 125.6% during the first quarter. Resources Investment Advisors Inc. now owns 503 shares of the information technology service provider’s stock valued at $36,000 after purchasing an additional 280 shares in the last quarter. Finally, Penserra Capital Management LLC bought a new stake in shares of Cognizant Technology Solutions during the first quarter valued at approximately $37,000. Hedge funds and other institutional investors own 88.43% of the company’s stock.
Cognizant Technology Solutions Company Profile
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers analytics and artificial intelligence, digital engineering, intelligent process automation, interactive, and hybrid cloud services and solutions; and application development, systems integration, application testing and maintenance, infrastructure, and business process services.
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