Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives $85.00 Average PT from Brokerages

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has earned an average rating of “Hold” from the nineteen analysts that are presently covering the company, Marketbeat reports. Fourteen equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $85.94.

CTSH has been the subject of several analyst reports. Barclays lowered their price target on shares of Cognizant Technology Solutions from $103.00 to $90.00 and set an “overweight” rating for the company in a research report on Friday, April 25th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cognizant Technology Solutions in a research report on Thursday. They issued a “hold” rating and a $80.00 price target for the company. Guggenheim reaffirmed a “neutral” rating on shares of Cognizant Technology Solutions in a report on Wednesday, April 23rd. JPMorgan Chase & Co. upgraded Cognizant Technology Solutions from a “neutral” rating to an “overweight” rating and increased their price objective for the stock from $88.00 to $98.00 in a report on Monday, May 19th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $93.00 price objective on shares of Cognizant Technology Solutions in a research note on Wednesday, March 26th.

Cognizant Technology Solutions Price Performance

NASDAQ:CTSH opened at $75.56 on Friday. Cognizant Technology Solutions has a 12 month low of $65.52 and a 12 month high of $90.82. The firm has a market cap of $37.25 billion, a P/E ratio of 15.91, a price-to-earnings-growth ratio of 1.72 and a beta of 0.96. The stock has a 50 day moving average of $79.18 and a two-hundred day moving average of $78.70. The company has a current ratio of 2.22, a quick ratio of 2.22 and a debt-to-equity ratio of 0.04.

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 (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.03. Cognizant Technology Solutions had a net margin of 11.73% and a return on equity of 16.73%. The company had revenue of $5.12 billion during the quarter, compared to analysts’ expectations of $5.06 billion. During the same period in the previous year, the company earned $1.12 EPS. The business’s quarterly revenue was up 7.5% compared to the same quarter last year. On average, analysts expect that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, May 28th. Stockholders of record on Monday, May 19th were paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.64%. The ex-dividend date of this dividend was Monday, May 19th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is presently 26.11%.

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

Institutional Trading of Cognizant Technology Solutions

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in Cognizant Technology Solutions by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 59,028,485 shares of the information technology service provider’s stock valued at $4,539,290,000 after purchasing an additional 515,881 shares during the last quarter. Geode Capital Management LLC raised its holdings in Cognizant Technology Solutions by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 13,437,687 shares of the information technology service provider’s stock valued at $1,032,239,000 after acquiring an additional 157,464 shares during the period. Invesco Ltd. grew its position in Cognizant Technology Solutions by 13.3% in the first quarter. Invesco Ltd. now owns 12,077,445 shares of the information technology service provider’s stock worth $923,925,000 after acquiring an additional 1,422,265 shares in the last quarter. FMR LLC raised its stake in shares of Cognizant Technology Solutions by 1.1% during the fourth quarter. FMR LLC now owns 11,147,006 shares of the information technology service provider’s stock valued at $857,205,000 after acquiring an additional 123,745 shares during the last quarter. Finally, Norges Bank bought a new position in Cognizant Technology Solutions in the fourth quarter worth about $527,719,000. Institutional investors own 92.44% of the company’s stock.

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.