Nomura Cuts Cognizant Technology Solutions (NASDAQ:CTSH) Price Target to $74.00

Cognizant Technology Solutions (NASDAQ:CTSH) had its price objective lowered by investment analysts at Nomura from $93.00 to $74.00 in a research note issued on Wednesday,MarketScreener reports. The firm currently has a “buy” rating on the information technology service provider’s stock. Nomura’s target price would indicate a potential upside of 84.10% from the stock’s previous close.

A number of other research firms also recently weighed in on CTSH. The Goldman Sachs Group set a $75.00 price objective on Cognizant Technology Solutions in a report on Wednesday, April 29th. Guggenheim reduced their price target on Cognizant Technology Solutions from $85.00 to $80.00 and set a “buy” rating on the stock in a research report on Thursday, April 30th. Morgan Stanley set a $44.00 price target on Cognizant Technology Solutions and gave the company an “equal weight” rating in a research note on Tuesday, June 23rd. BMO Capital Markets lowered their price objective on Cognizant Technology Solutions from $83.00 to $63.00 in a research report on Thursday, April 30th. Finally, Jefferies Financial Group cut their price objective on Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. Eleven analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $68.35.

Cognizant Technology Solutions Price Performance

NASDAQ CTSH traded up $1.47 on Wednesday, hitting $40.20. 1,405,923 shares of the company’s stock were exchanged, compared to its average volume of 8,061,543. The stock has a 50-day moving average of $50.57 and a 200-day moving average of $64.69. The stock has a market cap of $19.05 billion, a price-to-earnings ratio of 8.73, a P/E/G ratio of 0.82 and a beta of 0.81. Cognizant Technology Solutions has a 52 week low of $37.08 and a 52 week high of $87.03. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, beating the consensus estimate 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 business had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same quarter in the prior year, the firm earned $1.23 EPS. The firm’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. Analysts expect that Cognizant Technology Solutions will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions announced that its Board of Directors has approved a stock repurchase plan on Monday, May 18th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of hedge funds have recently added to or reduced their stakes in CTSH. Pacer Advisors Inc. boosted its holdings in shares of Cognizant Technology Solutions by 25.8% during the 1st quarter. Pacer Advisors Inc. now owns 2,442,902 shares of the information technology service provider’s stock worth $149,872,000 after buying an additional 500,886 shares in the last quarter. Pine Valley Investments Ltd Liability Co increased its stake in shares of Cognizant Technology Solutions by 3.6% in 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 acquiring an additional 322 shares in the last quarter. NewEdge Advisors LLC lifted its position in shares of 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 acquiring an additional 2,045 shares during the period. Glenmede Trust Co. NA lifted its position in shares of 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 acquiring an additional 46,575 shares during the period. Finally, Access Investment Management LLC boosted its stake in Cognizant Technology Solutions by 1,260.8% during the first quarter. Access Investment Management LLC now owns 73,075 shares of the information technology service provider’s stock worth $4,483,000 after acquiring an additional 67,705 shares in the last quarter. 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.