Cognizant Technology Solutions (NASDAQ:CTSH) Reaches New 1-Year High Following Earnings Beat

Cognizant Technology Solutions Co. (NASDAQ:CTSH) shares hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $83.97 and last traded at $83.54, with a volume of 3639889 shares changing hands. The stock had previously closed at $82.90.

The information technology service provider reported $1.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.60% and a return on equity of 17.08%.

Cognizant Technology Solutions Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 26th. Investors of record on Tuesday, February 18th will be issued a $0.31 dividend. The ex-dividend date of this dividend is Tuesday, February 18th. This is a positive change from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.42%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 26.55%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Royal Bank of Canada increased their price target on shares of Cognizant Technology Solutions from $82.00 to $93.00 and gave the company a “sector perform” rating in a report on Thursday. Robert W. Baird raised their price objective on Cognizant Technology Solutions from $78.00 to $80.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. TD Cowen boosted their target price on Cognizant Technology Solutions from $75.00 to $76.00 and gave the company a “hold” rating in a research report on Thursday, October 31st. StockNews.com upgraded Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a research report on Thursday. Finally, Mizuho boosted their price objective on shares of Cognizant Technology Solutions from $83.00 to $84.00 and gave the company a “neutral” rating in a research report on Friday, November 1st. Sixteen equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $83.22.

Insider Activity

In other Cognizant Technology Solutions news, CAO John Sunshin Kim sold 5,000 shares of the stock in a transaction dated Tuesday, December 3rd. The shares were sold at an average price of $80.11, for a total transaction of $400,550.00. Following the transaction, the chief accounting officer now directly owns 39,022 shares in the company, valued at $3,126,052.42. This represents a 11.36 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of the business. State Street Corp raised its stake in Cognizant Technology Solutions by 3.6% in the third quarter. State Street Corp now owns 24,985,816 shares of the information technology service provider’s stock worth $1,928,405,000 after buying an additional 867,176 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Cognizant Technology Solutions by 1.3% in the 3rd quarter. Geode Capital Management LLC now owns 13,280,223 shares of the information technology service provider’s stock valued at $1,022,728,000 after acquiring an additional 173,667 shares during the period. Charles Schwab Investment Management Inc. raised its position in shares of Cognizant Technology Solutions by 3.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,348,102 shares of the information technology service provider’s stock worth $257,469,000 after acquiring an additional 103,371 shares in the last quarter. ING Groep NV lifted its stake in shares of Cognizant Technology Solutions by 17.9% during the 4th quarter. ING Groep NV now owns 2,921,900 shares of the information technology service provider’s stock worth $224,694,000 after purchasing an additional 443,536 shares during the last quarter. Finally, Cibc World Market Inc. boosted its position in Cognizant Technology Solutions by 34.0% during the fourth quarter. Cibc World Market Inc. now owns 2,784,668 shares of the information technology service provider’s stock valued at $214,141,000 after purchasing an additional 705,946 shares in the last quarter. Hedge funds and other institutional investors own 92.44% of the company’s stock.

Cognizant Technology Solutions Price Performance

The company has a market cap of $43.18 billion, a PE ratio of 19.27, a price-to-earnings-growth ratio of 2.21 and a beta of 1.07. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.08. The firm has a 50 day simple moving average of $79.31 and a 200-day simple moving average of $77.45.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.