Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price Expected to Rise, Citigroup Analyst Says

Cognizant Technology Solutions (NASDAQ:CTSH) had its price target increased by analysts at Citigroup from $51.00 to $55.00 in a note issued to investors on Monday,MarketScreener reports. The brokerage presently has a “neutral” rating on the information technology service provider’s stock. Citigroup’s price target suggests a potential upside of 2.94% from the company’s previous close.

A number of other equities research analysts have also recently weighed in on the company. Dbs Bank dropped their price target on Cognizant Technology Solutions from $80.00 to $66.00 in a research note on Thursday, May 7th. Nomura raised their target price on shares of Cognizant Technology Solutions from $92.00 to $93.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Berenberg Bank decreased their price target on shares of Cognizant Technology Solutions from $107.00 to $81.00 and set a “buy” rating on the stock in a research note on Monday, May 11th. Argus upgraded shares of Cognizant Technology Solutions to a “hold” rating in a research report on Tuesday, February 10th. Finally, Evercore decreased their target price on Cognizant Technology Solutions from $100.00 to $70.00 in a research report on Thursday, April 30th. Eleven equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $73.50.

Cognizant Technology Solutions Stock Performance

NASDAQ:CTSH traded up $0.22 during mid-day trading on Monday, hitting $53.43. The stock had a trading volume of 1,707,737 shares, compared to its average volume of 6,966,197. Cognizant Technology Solutions has a twelve month low of $45.48 and a twelve month high of $87.03. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. The stock has a market cap of $25.32 billion, a price-to-earnings ratio of 11.60, a PEG ratio of 1.12 and a beta of 0.81. The company’s 50 day simple moving average is $55.65 and its 200 day simple moving average is $68.46.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings data 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. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The firm had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. During the same quarter in the prior year, the company earned $1.23 earnings per share. The business’s revenue for the quarter was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, equities research analysts forecast that Cognizant Technology Solutions will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions declared that its Board of Directors has authorized a stock buyback plan on Monday, May 18th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the information technology service provider to repurchase up to 9% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CTSH. Alps Advisors Inc. raised its position in Cognizant Technology Solutions by 16.5% during the third quarter. Alps Advisors Inc. now owns 306,078 shares of the information technology service provider’s stock valued at $20,529,000 after purchasing an additional 43,252 shares in the last quarter. Temasek Holdings Private Ltd bought a new position in shares of Cognizant Technology Solutions in the 3rd quarter valued at $55,217,000. OFI Invest Asset Management acquired a new position in shares of Cognizant Technology Solutions during the 4th quarter worth $8,421,000. LSV Asset Management raised its holdings in shares of Cognizant Technology Solutions by 4.3% during the 3rd quarter. LSV Asset Management now owns 1,749,490 shares of the information technology service provider’s stock worth $117,338,000 after buying an additional 71,711 shares in the last quarter. Finally, Todd Asset Management LLC lifted its position in shares of Cognizant Technology Solutions by 23.7% during the 3rd quarter. Todd Asset Management LLC now owns 548,763 shares of the information technology service provider’s stock worth $36,806,000 after buying an additional 105,197 shares during the last quarter. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions Company Profile

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.