Cognizant Technology Solutions (NASDAQ:CTSH) Sets New 12-Month Low – Here’s What Happened

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) shares reached a new 52-week low on Wednesday . The company traded as low as $37.08 and last traded at $38.73, with a volume of 10244905 shares trading hands. The stock had previously closed at $38.74.

Wall Street Analyst Weigh In

Several research firms have commented on CTSH. Daiwa Securities Group dropped their price objective on shares of Cognizant Technology Solutions from $65.00 to $42.00 and set a “neutral” rating on the stock in a report on Wednesday, June 24th. Mizuho dropped their price target on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 6th. Weiss Ratings lowered shares of Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, May 13th. Dbs Bank dropped their target price on Cognizant Technology Solutions from $80.00 to $66.00 in a research report on Thursday, May 7th. Finally, TD Cowen reduced their price target on Cognizant Technology Solutions from $62.00 to $47.00 and set a “hold” rating for the company in a research report on Friday, June 26th. Ten equities research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $69.70.

Cognizant Technology Solutions Stock Down 0.0%

The company has a market capitalization of $18.35 billion, a P/E ratio of 8.42, a price-to-earnings-growth ratio of 0.82 and a beta of 0.81. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. The stock’s fifty day moving average is $50.57 and its 200 day moving average is $64.69.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.07. The company had revenue of $5.41 billion for the quarter, compared to analysts’ expectations of $5.41 billion. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. Cognizant Technology Solutions’s quarterly revenue was up 5.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.23 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Research analysts predict that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 28.70%.

Cognizant Technology Solutions declared that its board has initiated a share repurchase program on Monday, May 18th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology service provider to buy up to 9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its stock is undervalued.

Institutional Trading of Cognizant Technology Solutions

Institutional investors and hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC bought a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at approximately $214,000. Geneos Wealth Management Inc. increased its holdings in shares of Cognizant Technology Solutions by 118.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider’s stock valued at $44,000 after acquiring an additional 309 shares during the period. Acadian Asset Management LLC purchased a new position in shares of Cognizant Technology Solutions in the 1st quarter worth approximately $142,000. Cresset Asset Management LLC increased its position in Cognizant Technology Solutions by 11.4% during the 2nd quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider’s stock valued at $715,000 after buying an additional 935 shares in the last quarter. Finally, Jump Financial LLC increased its stake in Cognizant Technology Solutions by 231.4% during the 2nd quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider’s stock valued at $2,315,000 after purchasing an additional 20,716 shares in the last quarter. 92.44% of the stock is currently owned by institutional investors.

About Cognizant Technology Solutions

Cognizant Technology Solutions (NASDAQ: CTSH) is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.