Cognizant Technology Solutions Co. (NASDAQ:CTSH) Receives Average Recommendation of “Hold” from Analysts

Shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH) have been given an average rating of “Hold” by the eighteen research firms that are presently covering the stock, MarketBeat Ratings reports. Fifteen analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $83.87.

CTSH has been the topic of several research analyst reports. JPMorgan Chase & Co. lowered their target price on shares of Cognizant Technology Solutions from $92.00 to $81.00 and set a “neutral” rating on the stock in a research note on Tuesday. Barclays lowered their price objective on shares of Cognizant Technology Solutions from $103.00 to $90.00 and set an “overweight” rating on the stock in a research report on Friday, April 25th. Needham & Company LLC reiterated a “hold” rating on shares of Cognizant Technology Solutions in a research note on Thursday. UBS Group dropped their price target on Cognizant Technology Solutions from $93.00 to $88.00 and set a “neutral” rating on the stock in a research note on Monday, March 17th. Finally, Robert W. Baird upped their price objective on Cognizant Technology Solutions from $78.00 to $82.00 and gave the company a “neutral” rating in a research report on Thursday.

Cognizant Technology Solutions Stock Up 2.3 %

NASDAQ:CTSH opened at $75.23 on Friday. The firm has a 50-day simple moving average of $75.91 and a two-hundred day simple moving average of $78.56. The firm has a market cap of $37.21 billion, a P/E ratio of 16.68, a P/E/G ratio of 2.11 and a beta of 1.03. Cognizant Technology Solutions has a fifty-two week low of $63.79 and a fifty-two 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 announced its quarterly earnings data on Wednesday, April 30th. The information technology service provider reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of $1.20 by $0.03. The company had revenue of $5.12 billion during the quarter, compared to analyst estimates of $5.06 billion. Cognizant Technology Solutions had a net margin of 11.35% and a return on equity of 16.78%. The firm’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.12 EPS. Analysts predict that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions declared that its board has approved a share buyback program on Tuesday, March 25th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology service provider to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Cognizant Technology Solutions Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 28th. Investors of record on Monday, May 19th will be given a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 1.65%. The ex-dividend date of this dividend is Monday, May 19th. Cognizant Technology Solutions’s dividend payout ratio is currently 27.49%.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors have recently added to or reduced their stakes in the stock. Duncker Streett & Co. Inc. purchased a new position in Cognizant Technology Solutions during the fourth quarter valued at $28,000. Trust Co. of Vermont increased its holdings in shares of Cognizant Technology Solutions by 188.4% in the fourth quarter. Trust Co. of Vermont now owns 447 shares of the information technology service provider’s stock worth $34,000 after purchasing an additional 292 shares during the last quarter. SBI Securities Co. Ltd. bought a new position in Cognizant Technology Solutions during the fourth quarter valued at approximately $36,000. Park Square Financial Group LLC purchased a new position in Cognizant Technology Solutions during the 4th quarter valued at approximately $36,000. Finally, Spire Wealth Management grew its holdings in shares of Cognizant Technology Solutions by 74.7% in the fourth quarter. Spire Wealth Management now owns 477 shares of the information technology service provider’s stock valued at $37,000 after purchasing an additional 204 shares in the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

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.