Cognizant Technology Solutions (NASDAQ:CTSH) Sets New 12-Month Low on Analyst Downgrade

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s stock price reached a new 52-week low during mid-day trading on Wednesday after Nomura lowered their price target on the stock from $93.00 to $74.00. Nomura currently has a buy rating on the stock. Cognizant Technology Solutions traded as low as $37.08 and last traded at $38.73, with a volume of 10244905 shares traded. The stock had previously closed at $38.74.

CTSH has been the subject of a number of other research reports. Susquehanna dropped their target price on Cognizant Technology Solutions from $98.00 to $88.00 and set a “positive” rating for the company in a research report on Friday, May 1st. JPMorgan Chase & Co. decreased 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. Evercore lowered their price objective on Cognizant Technology Solutions from $100.00 to $70.00 in a research report on Thursday, April 30th. The Goldman Sachs Group set a $75.00 price objective on Cognizant Technology Solutions in a report on Wednesday, April 29th. Finally, HSBC cut their target price on shares of Cognizant Technology Solutions from $80.00 to $68.00 and set a “buy” rating on the stock in a research report on Wednesday. Eleven investment analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $68.35.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CTSH. JPL Wealth Management LLC bought a new stake in Cognizant Technology Solutions in the 3rd quarter valued at $25,000. Lodestone Wealth Management LLC bought a new position in Cognizant Technology Solutions during the 4th quarter worth about $28,000. Flagship Harbor Advisors LLC bought a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at about $28,000. Physician Wealth Advisors Inc. lifted its holdings in shares of Cognizant Technology Solutions by 165.1% in the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock valued at $28,000 after purchasing an additional 213 shares in the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter worth about $29,000. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions Stock Performance

The stock has a fifty day moving average of $49.82 and a 200-day moving average of $64.09. The firm has a market capitalization of $19.90 billion, a P/E ratio of 9.13, a P/E/G ratio of 0.86 and a beta of 0.87. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results 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 return on equity of 17.50% and a net margin of 10.41%.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 business posted $1.23 EPS. The business’s quarterly 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, research analysts anticipate that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current year.

Cognizant Technology Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Monday, May 18th. Cognizant Technology Solutions’s payout ratio is currently 28.70%.

Cognizant Technology Solutions declared that its Board of Directors has approved a stock buyback program on Monday, May 18th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

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.