Capital Research Global Investors Boosts Stake in Cognizant Technology Solutions Corporation $CTSH

Capital Research Global Investors increased its position in Cognizant Technology Solutions Corporation (NASDAQ:CTSH) by 2.2% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,356,349 shares of the information technology service provider’s stock after buying an additional 139,437 shares during the period. Capital Research Global Investors’ holdings in Cognizant Technology Solutions were worth $527,577,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. 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 during the period. Temasek Holdings Private Ltd purchased a new stake in Cognizant Technology Solutions during the third quarter valued at approximately $55,217,000. OFI Invest Asset Management purchased a new stake in Cognizant Technology Solutions during the fourth quarter valued at approximately $8,421,000. LSV Asset Management raised its position in Cognizant Technology Solutions by 4.3% during the third quarter. LSV Asset Management now owns 1,749,490 shares of the information technology service provider’s stock valued at $117,338,000 after purchasing an additional 71,711 shares during the period. Finally, Todd Asset Management LLC raised its position in Cognizant Technology Solutions by 23.7% during the third quarter. Todd Asset Management LLC now owns 548,763 shares of the information technology service provider’s stock valued at $36,806,000 after purchasing an additional 105,197 shares during the period. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Wells Fargo & Company decreased their price objective on Cognizant Technology Solutions from $98.00 to $83.00 and set an “overweight” rating on the stock in a research report on Thursday, April 30th. Robert W. Baird set a $72.00 price target on Cognizant Technology Solutions and gave the stock a “neutral” rating in a report on Friday, April 10th. JPMorgan Chase & Co. reduced their price target on Cognizant Technology Solutions from $92.00 to $74.00 and set an “overweight” rating on the stock in a report on Tuesday, April 28th. BMO Capital Markets reduced their price target on Cognizant Technology Solutions from $83.00 to $63.00 in a report on Thursday, April 30th. Finally, Dbs Bank reduced their price target on Cognizant Technology Solutions from $80.00 to $66.00 in a report on Thursday, May 7th. Ten analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $72.68.

Cognizant Technology Solutions Stock Performance

Shares of NASDAQ CTSH opened at $53.21 on Monday. 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’s 50 day moving average price is $55.65 and its 200-day moving average price is $68.46. Cognizant Technology Solutions Corporation has a fifty-two week low of $45.48 and a fifty-two week high of $87.03. The company has a market cap of $25.21 billion, a price-to-earnings ratio of 11.57, a PEG ratio of 1.12 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, topping 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 company had revenue of $5.41 billion for the quarter, compared to analysts’ expectations of $5.41 billion. During the same quarter in the prior year, the firm earned $1.23 earnings per share. Cognizant Technology Solutions’s revenue 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, sell-side analysts expect that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions declared that its Board of Directors has initiated a stock repurchase program on Monday, May 18th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits 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 leadership believes its shares are undervalued.

Cognizant Technology Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were paid a $0.33 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.32 annualized dividend and a yield of 2.5%. Cognizant Technology Solutions’s dividend payout ratio is 28.70%.

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.