Cognizant Technology Solutions (NASDAQ:CTSH) Trading Up 5% – Here’s Why

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) shot up 5% during trading on Tuesday . The stock traded as high as $43.67 and last traded at $43.4290. 1,371,072 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 8,121,304 shares. The stock had previously closed at $41.37.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on CTSH shares. Dbs Bank dropped their price objective on Cognizant Technology Solutions from $80.00 to $66.00 in a research note on Thursday, May 7th. Weiss Ratings downgraded shares of Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, May 13th. Mizuho lowered their target price on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a report on Wednesday, May 6th. UBS Group dropped their target price on shares of Cognizant Technology Solutions from $60.00 to $55.00 in a research report on Monday, May 11th. Finally, Citigroup lifted their price target on shares of Cognizant Technology Solutions from $51.00 to $55.00 and gave the company a “neutral” rating in a report on Monday, June 8th. Eleven research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $68.35.

Cognizant Technology Solutions Trading Down 3.4%

The company has a 50-day simple moving average of $48.74 and a 200-day simple moving average of $62.93. 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 stock has a market cap of $20.11 billion, a P/E ratio of 9.22, a P/E/G ratio of 0.93 and a beta of 0.87.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 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 business earned $1.23 earnings per share. The business’s revenue for the quarter was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, sell-side analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were given a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 3.1%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is presently 28.70%.

Cognizant Technology Solutions announced that its board has authorized a stock repurchase plan on Monday, May 18th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

Large investors have recently modified their holdings of the stock. Flagship Harbor Advisors LLC bought a new position in Cognizant Technology Solutions in the 4th quarter worth approximately $28,000. Physician Wealth Advisors Inc. raised its position in shares of Cognizant Technology Solutions by 165.1% during the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock worth $28,000 after acquiring an additional 213 shares during the last quarter. Lodestone Wealth Management LLC bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter worth $28,000. Prosperity Bancshares Inc acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at $29,000. Finally, Towne Trust Company N.A lifted its stake in shares of Cognizant Technology Solutions by 85.0% during the fourth quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider’s stock valued at $31,000 after acquiring an additional 170 shares during the period. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Cognizant Technology Solutions Company Profile

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.