Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 52-Week Low – Time to Sell?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) shares reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $44.77 and last traded at $45.0060, with a volume of 4831201 shares. The stock had previously closed at $48.82.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on CTSH shares. Truist Financial started coverage on Cognizant Technology Solutions in a report on Monday, June 1st. They issued a “hold” rating and a $66.00 price objective for the company. Jefferies Financial Group cut their price objective on Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating for the company in a report on Monday, May 4th. Wells Fargo & Company cut their price objective on Cognizant Technology Solutions from $98.00 to $83.00 and set an “overweight” rating for the company in a report on Thursday, April 30th. Mizuho cut their price objective on Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating for the company in a report on Wednesday, May 6th. Finally, Nomura boosted their target price on Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Ten equities research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $72.50.

Cognizant Technology Solutions Stock Performance

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 business has a 50 day moving average price of $54.05 and a two-hundred day moving average price of $67.15. The company has a market cap of $20.76 billion, a P/E ratio of 9.53, a price-to-earnings-growth ratio of 1.07 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, beating analysts’ consensus estimates 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 company had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.41 billion. During the same quarter in the previous year, the company posted $1.23 EPS. Cognizant Technology Solutions’s revenue for the quarter was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, sell-side analysts anticipate that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a yield of 3.0%. Cognizant Technology Solutions’s dividend payout ratio is presently 28.70%.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Pine Valley Investments Ltd Liability Co raised its position in Cognizant Technology Solutions by 3.6% during the 1st quarter. Pine Valley Investments Ltd Liability Co now owns 9,338 shares of the information technology service provider’s stock valued at $573,000 after purchasing an additional 322 shares during the last quarter. NewEdge Advisors LLC raised its position in Cognizant Technology Solutions by 12.0% during the 1st quarter. NewEdge Advisors LLC now owns 19,107 shares of the information technology service provider’s stock valued at $1,172,000 after purchasing an additional 2,045 shares during the last quarter. Glenmede Trust Co. NA raised its position in Cognizant Technology Solutions by 21.6% during the 1st quarter. Glenmede Trust Co. NA now owns 262,308 shares of the information technology service provider’s stock valued at $16,093,000 after purchasing an additional 46,575 shares during the last quarter. Access Investment Management LLC raised its position in Cognizant Technology Solutions by 1,260.8% during the 1st quarter. Access Investment Management LLC now owns 73,075 shares of the information technology service provider’s stock valued at $4,483,000 after purchasing an additional 67,705 shares during the last quarter. Finally, Strategic Investment Advisors MI raised its position in Cognizant Technology Solutions by 4.5% during the 1st quarter. Strategic Investment Advisors MI now owns 12,350 shares of the information technology service provider’s stock valued at $758,000 after purchasing an additional 536 shares during the last quarter. Institutional investors 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.