Cognizant Technology Solutions (NASDAQ:CTSH) Earns Sector Perform Rating from Royal Bank of Canada

Royal Bank of Canada restated their sector perform rating on shares of Cognizant Technology Solutions (NASDAQ:CTSH) in a report released on Wednesday,Benzinga reports. They currently have a $93.00 price target on the information technology service provider’s stock.

Several other equities research analysts have also commented on CTSH. StockNews.com upgraded Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a research note on Thursday, February 6th. Mizuho upgraded Cognizant Technology Solutions to a “hold” rating in a research report on Wednesday, March 19th. UBS Group lowered their price objective on Cognizant Technology Solutions from $93.00 to $88.00 and set a “neutral” rating on the stock in a research report on Monday, March 17th. Morgan Stanley reduced their target price on shares of Cognizant Technology Solutions from $85.00 to $80.00 and set an “equal weight” rating for the company in a report on Wednesday, March 12th. Finally, Barclays lifted their price target on shares of Cognizant Technology Solutions from $95.00 to $103.00 and gave the company an “overweight” rating in a report on Monday, February 10th. Fourteen analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $84.56.

Cognizant Technology Solutions Trading Down 2.2 %

Shares of NASDAQ:CTSH opened at $75.90 on Wednesday. The stock’s 50-day simple moving average is $82.68 and its two-hundred day simple moving average is $79.47. The stock has a market capitalization of $37.54 billion, a price-to-earnings ratio of 16.83, a PEG ratio of 2.11 and a beta of 1.12. Cognizant Technology Solutions has a 52-week low of $63.79 and a 52-week high of $90.82. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.09 and a current ratio of 2.09.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Wednesday, February 5th. The information technology service provider reported $1.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.35% and a return on equity of 16.78%. Analysts expect that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, February 26th. Stockholders of record on Tuesday, February 18th were issued a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 1.63%. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Tuesday, February 18th. Cognizant Technology Solutions’s dividend payout ratio is presently 27.49%.

Cognizant Technology Solutions announced that its Board of Directors has initiated a share repurchase plan on Tuesday, March 25th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information technology service provider to buy up to 5.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds have recently made changes to their positions in CTSH. Norges Bank bought a new position in Cognizant Technology Solutions in the fourth quarter worth approximately $527,719,000. National Bank of Canada FI increased its position in Cognizant Technology Solutions by 54.6% during the 4th quarter. National Bank of Canada FI now owns 5,633,987 shares of the information technology service provider’s stock valued at $433,254,000 after buying an additional 1,990,515 shares in the last quarter. AE Industrial Partners LP purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at $113,088,000. Capital Research Global Investors raised its stake in shares of Cognizant Technology Solutions by 98.9% in the fourth quarter. Capital Research Global Investors now owns 2,742,442 shares of the information technology service provider’s stock worth $210,894,000 after purchasing an additional 1,363,570 shares during the last quarter. Finally, Deutsche Bank AG increased its stake in shares of Cognizant Technology Solutions by 47.8% in the fourth quarter. Deutsche Bank AG now owns 3,303,355 shares of the information technology service provider’s stock worth $254,028,000 after acquiring an additional 1,068,420 shares during the period. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

About Cognizant Technology Solutions

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.