Cognizant Technology Solutions (NASDAQ:CTSH) Reaches New 1-Year High – Here’s Why

Shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH) hit a new 52-week high during trading on Thursday . The stock traded as high as $82.95 and last traded at $82.52, with a volume of 150498 shares. The stock had previously closed at $81.19.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Needham & Company LLC restated a “hold” rating on shares of Cognizant Technology Solutions in a report on Thursday, October 31st. Mizuho increased their price target on Cognizant Technology Solutions from $83.00 to $84.00 and gave the stock a “neutral” rating in a report on Friday, November 1st. Robert W. Baird increased their price objective on Cognizant Technology Solutions from $78.00 to $80.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Deutsche Bank Aktiengesellschaft raised their price objective on Cognizant Technology Solutions from $70.00 to $80.00 and gave the company a “hold” rating in a research report on Tuesday, October 22nd. Finally, StockNews.com cut Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a report on Monday, January 13th. Fifteen investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $81.19.

Cognizant Technology Solutions Price Performance

The firm has a market cap of $41.15 billion, a P/E ratio of 18.37, a price-to-earnings-growth ratio of 2.06 and a beta of 1.07. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.08. The business has a 50-day moving average of $79.01 and a two-hundred day moving average of $77.14.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, October 30th. The information technology service provider reported $1.25 EPS for the quarter, topping the consensus estimate of $1.15 by $0.10. The firm had revenue of $5.04 billion for the quarter, compared to the consensus estimate of $4.99 billion. Cognizant Technology Solutions had a return on equity of 17.08% and a net margin of 11.60%. The business’s quarterly revenue was up 3.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.16 EPS. On average, sell-side analysts anticipate that Cognizant Technology Solutions Co. will post 4.66 earnings per share for the current fiscal year.

Insider Activity

In related news, CAO John Sunshin Kim sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 3rd. The stock was sold at an average price of $80.11, for a total transaction of $400,550.00. Following the transaction, the chief accounting officer now directly owns 39,022 shares of the company’s stock, valued at approximately $3,126,052.42. This represents a 11.36 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.26% of the stock is owned by company insiders.

Institutional Trading of Cognizant Technology Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CTSH. International Assets Investment Management LLC bought a new position in Cognizant Technology Solutions during the third quarter valued at $1,972,000. Retirement Systems of Alabama increased its stake in Cognizant Technology Solutions by 3.5% in the third quarter. Retirement Systems of Alabama now owns 1,187,850 shares of the information technology service provider’s stock valued at $91,678,000 after acquiring an additional 40,226 shares during the last quarter. CGN Advisors LLC bought a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at about $1,294,000. Daiwa Securities Group Inc. grew its stake in shares of Cognizant Technology Solutions by 12.6% in the third quarter. Daiwa Securities Group Inc. now owns 101,420 shares of the information technology service provider’s stock worth $7,828,000 after purchasing an additional 11,349 shares during the last quarter. Finally, Matthews International Capital Management LLC grew its stake in shares of Cognizant Technology Solutions by 52.0% in the fourth quarter. Matthews International Capital Management LLC now owns 50,108 shares of the information technology service provider’s stock worth $3,853,000 after purchasing an additional 17,134 shares during the last quarter. 92.44% of the stock is owned by institutional investors.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.