Cognizant Technology Solutions (NASDAQ:CTSH) Shares Up 6.7% – Here’s What Happened

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) shares shot up 6.7% on Monday . The stock traded as high as $50.17 and last traded at $50.2920. 4,791,475 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 6,571,276 shares. The stock had previously closed at $47.13.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on CTSH shares. Wells Fargo & Company lowered their price target on shares of Cognizant Technology Solutions from $98.00 to $83.00 and set an “overweight” rating on the stock in a report on Thursday, April 30th. Royal Bank Of Canada increased their price objective on Cognizant Technology Solutions from $82.00 to $88.00 and gave the stock a “sector perform” rating in a research report on Thursday, February 5th. TD Cowen reiterated a “hold” rating and set a $62.00 price objective (down from $71.00) on shares of Cognizant Technology Solutions in a research report on Thursday, April 30th. The Goldman Sachs Group set a $75.00 price objective on Cognizant Technology Solutions in a research report on Wednesday, April 29th. Finally, HSBC lowered their price objective on Cognizant Technology Solutions from $98.00 to $80.00 in a research report on Thursday, April 30th. Ten analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $73.00.

Cognizant Technology Solutions Stock Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. The stock has a 50-day simple moving average of $58.32 and a 200-day simple moving average of $70.50. The stock has a market cap of $24.09 billion, a P/E ratio of 11.06, a PEG ratio of 0.99 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share 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 analysts’ expectations of $5.41 billion. During the same quarter in the previous year, the firm posted $1.23 earnings per share. The company’s revenue 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. Research analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Monday, May 18th will be issued a $0.33 dividend. The ex-dividend date is Monday, May 18th. This represents a $1.32 annualized dividend and a yield of 2.6%. Cognizant Technology Solutions’s dividend payout ratio is presently 28.70%.

Hedge Funds Weigh In On Cognizant Technology Solutions

Institutional investors and hedge funds have recently modified their holdings of the business. JPL Wealth Management LLC bought a new position in shares of Cognizant Technology Solutions during the 3rd quarter worth approximately $25,000. Lodestone Wealth Management LLC bought a new position in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $28,000. Flagship Harbor Advisors LLC bought a new position in shares of Cognizant Technology Solutions during the 4th quarter worth about $28,000. Physician Wealth Advisors Inc. boosted its position in shares of Cognizant Technology Solutions by 165.1% during the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock worth $28,000 after purchasing an additional 213 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new position in shares of Cognizant Technology Solutions during the 4th quarter worth about $29,000. 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.