Guggenheim Upgrades Cognizant Technology Solutions (NASDAQ:CTSH) to “Buy”

Cognizant Technology Solutions (NASDAQ:CTSH) was upgraded by stock analysts at Guggenheim from a “neutral” rating to a “buy” rating in a report issued on Friday,Finviz reports. The brokerage currently has a $90.00 target price on the information technology service provider’s stock. Guggenheim’s price objective suggests a potential upside of 19.11% from the company’s previous close.

A number of other equities analysts have also recently issued reports on the stock. TD Securities boosted their price objective on shares of Cognizant Technology Solutions from $77.00 to $79.00 and gave the company a “hold” rating in a research report on Thursday, May 1st. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cognizant Technology Solutions in a report on Thursday. They issued a “hold” rating and a $80.00 target price for the company. Susquehanna upgraded shares of Cognizant Technology Solutions from a “neutral” rating to a “positive” rating and raised their price target for the company from $77.00 to $90.00 in a report on Thursday, May 1st. Needham & Company LLC reaffirmed a “hold” rating on shares of Cognizant Technology Solutions in a report on Thursday, May 1st. Finally, Robert W. Baird upped their target price on shares of Cognizant Technology Solutions from $78.00 to $82.00 and gave the company a “neutral” rating in a research report on Thursday, May 1st. Thirteen equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $86.18.

Cognizant Technology Solutions Trading Up 1.0%

Shares of 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 stock has a market cap of $37.25 billion, a PE ratio of 15.91, a P/E/G ratio of 1.72 and a beta of 0.96. The business has a 50 day moving average of $79.18 and a 200-day moving average of $78.70. The company has a quick ratio of 2.22, a current ratio of 2.22 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Wednesday, April 30th. The information technology service provider reported $1.23 EPS for the quarter, beating analysts’ consensus estimates 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 business had revenue of $5.12 billion for the quarter, compared to analysts’ expectations of $5.06 billion. During the same quarter in the prior year, the firm posted $1.12 earnings per share. The business’s quarterly revenue was up 7.5% compared to the same quarter last year. As a group, equities research analysts forecast that Cognizant Technology Solutions will post 4.98 earnings per share for the current year.

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Ritholtz Wealth Management grew its holdings in Cognizant Technology Solutions by 21.0% during the 1st quarter. Ritholtz Wealth Management now owns 10,531 shares of the information technology service provider’s stock valued at $806,000 after buying an additional 1,827 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in Cognizant Technology Solutions by 1.4% during the 1st quarter. Envestnet Asset Management Inc. now owns 500,039 shares of the information technology service provider’s stock worth $38,253,000 after purchasing an additional 7,105 shares in the last quarter. Janney Montgomery Scott LLC increased its position in Cognizant Technology Solutions by 40.7% during the 1st quarter. Janney Montgomery Scott LLC now owns 28,047 shares of the information technology service provider’s stock worth $2,146,000 after purchasing an additional 8,116 shares during the period. Golden State Wealth Management LLC raised its position in shares of Cognizant Technology Solutions by 290.9% in the 1st quarter. Golden State Wealth Management LLC now owns 899 shares of the information technology service provider’s stock worth $69,000 after buying an additional 669 shares during the period. Finally, Farther Finance Advisors LLC raised its holdings in Cognizant Technology Solutions by 14.0% during the first quarter. Farther Finance Advisors LLC now owns 4,814 shares of the information technology service provider’s stock worth $368,000 after purchasing an additional 591 shares in the last quarter. Institutional investors and hedge funds own 92.44% 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 in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.