Cognizant Technology Solutions Corporation (NASDAQ:CTSH) to Issue $0.33 Quarterly Dividend

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) announced a quarterly dividend on Wednesday, July 29th. Shareholders of record on Tuesday, August 18th will be paid a dividend of 0.33 per share by the information technology service provider on Tuesday, August 25th. This represents a c) dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Tuesday, August 18th.

Cognizant Technology Solutions has increased its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 6 consecutive years. Cognizant Technology Solutions has a payout ratio of 24.3% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cognizant Technology Solutions to earn $6.19 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 21.3%.

Cognizant Technology Solutions Trading Up 11.3%

NASDAQ CTSH opened at $56.02 on Thursday. The firm’s 50 day moving average price is $47.13 and its two-hundred day moving average price is $58.80. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. Cognizant Technology Solutions has a twelve month low of $37.08 and a twelve month high of $87.03. The stock has a market cap of $26.54 billion, a price-to-earnings ratio of 12.18, a PEG ratio of 1.10 and a beta of 0.87.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). The business had revenue of $5.48 billion during the quarter, compared to analysts’ expectations of $5.48 billion. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. Cognizant Technology Solutions’s revenue for the quarter was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.31 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. Equities analysts anticipate that Cognizant Technology Solutions will post 5.7 EPS for the current year.

Analysts Set New Price Targets

CTSH has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft set a $55.00 target price on Cognizant Technology Solutions in a report on Friday, July 10th. Truist Financial assumed 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 objective on the stock. Morgan Stanley set a $44.00 price objective on shares of Cognizant Technology Solutions and gave the company an “equal weight” rating in a research note on Tuesday, June 23rd. Mizuho cut their target price on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating for the company in a research report on Wednesday, May 6th. Finally, Wedbush raised shares of Cognizant Technology Solutions from a “neutral” rating to an “outperform” rating and raised their price objective for the company from $56.00 to $70.00 in a research report on Monday, June 8th. Ten equities research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $61.35.

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.