Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Given Consensus Rating of “Hold” by Analysts

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) have received a consensus rating of “Hold” from the twenty-five ratings firms that are covering the company, MarketBeat Ratings reports. Fourteen equities research analysts have rated the stock with a hold recommendation and eleven have issued a buy recommendation on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $68.3478.

A number of analysts recently weighed in on CTSH shares. Nomura decreased their target price on shares of Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating on the stock in a report on Wednesday. Truist Financial initiated coverage on shares of Cognizant Technology Solutions in a research report on Monday, June 1st. They set a “hold” rating and a $66.00 price target for the company. Daiwa Securities Group decreased their target price on Cognizant Technology Solutions from $65.00 to $42.00 and set a “neutral” rating on the stock in a research note on Wednesday, June 24th. Citigroup raised their price objective on shares of Cognizant Technology Solutions from $51.00 to $55.00 and gave the company a “neutral” rating in a research report on Monday, June 8th. Finally, Guggenheim decreased their price objective on Cognizant Technology Solutions from $85.00 to $80.00 and set a “buy” rating on the stock in a report on Thursday, April 30th.

Hedge Funds Weigh In On Cognizant Technology Solutions

Large investors have recently added to or reduced their stakes in the business. Evolve Private Wealth LLC bought a new position in Cognizant Technology Solutions during the 4th quarter worth approximately $2,642,000. Temasek Holdings Private Ltd bought a new stake in Cognizant Technology Solutions in the third quarter valued at approximately $55,217,000. OFI Invest Asset Management bought a new stake in Cognizant Technology Solutions in the fourth quarter valued at approximately $8,421,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of Cognizant Technology Solutions by 34.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,874,274 shares of the information technology service provider’s stock valued at $238,565,000 after purchasing an additional 734,337 shares during the period. Finally, Corient Private Wealth LLC boosted its stake in shares of Cognizant Technology Solutions by 44.4% during the fourth quarter. Corient Private Wealth LLC now owns 108,131 shares of the information technology service provider’s stock valued at $8,977,000 after purchasing an additional 33,248 shares during the period. Hedge funds and other institutional investors own 92.44% of the company’s stock.

Cognizant Technology Solutions Stock Up 2.2%

CTSH stock opened at $41.99 on Friday. The stock has a 50-day simple moving average of $49.82 and a two-hundred day simple moving average of $64.09. Cognizant Technology Solutions has a twelve month low of $37.08 and a twelve month high of $87.03. The firm has a market capitalization of $19.90 billion, a PE ratio of 9.13, a PEG ratio of 0.86 and a beta of 0.87. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04.

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, topping analysts’ consensus estimates of $1.33 by $0.07. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The firm had revenue of $5.41 billion for the quarter, compared to the consensus estimate of $5.41 billion. During the same period in the prior year, the firm posted $1.23 earnings per share. The company’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, equities analysts predict that Cognizant Technology Solutions will post 5.7 EPS for the current fiscal year.

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

Cognizant Technology Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s payout ratio is presently 28.70%.

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.