Cognizant Technology Solutions Corp. (NASDAQ:CTSH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.

According to Zacks, “Cognizant has been seeing downward estimate revisions of late. The company's business has been affected because of persisting macroeconomic headwinds and sluggish spending levels in its healthcare and financial sector, which are its biggest markets. The company had even lowered its revenue outlook for 2016 given these factors. Intense competition in the IT service industry, rising wages and customer concentration are other challenges. Nonetheless, the company is expected to benefit from strong demand for high quality, lower cost technology services. In addition, it has placed itself well to benefit from the ongoing digitization of businesses. Also, acquisitions will continue to play an important role in boosting revenues. “

A number of other research analysts have also weighed in on the company. Vetr upgraded Cognizant Technology Solutions Corp. from a “buy” rating to a “strong-buy” rating and set a $65.33 target price on the stock in a report on Monday, September 12th. Nomura lowered Cognizant Technology Solutions Corp. from a “buy” rating to a “neutral” rating and dropped their target price for the company from $65.00 to $62.00 in a report on Monday, August 8th. Jefferies Group restated a “buy” rating and issued a $70.00 target price on shares of Cognizant Technology Solutions Corp. in a report on Monday, June 20th. SunTrust Banks Inc. lowered Cognizant Technology Solutions Corp. from a “buy” rating to a “neutral” rating and dropped their target price for the company from $70.00 to $65.00 in a report on Tuesday, July 12th. Finally, Cantor Fitzgerald reaffirmed a “buy” rating and set a $68.00 price target on shares of Cognizant Technology Solutions Corp. in a research report on Wednesday, June 29th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus target price of $66.87.

Analyst Recommendations for Cognizant Technology Solutions Corp. (NASDAQ:CTSH)

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Cognizant Technology Solutions Corp. (NASDAQ:CTSH) opened at 52.96 on Wednesday. The stock’s 50 day moving average is $57.01 and its 200 day moving average is $58.98. Cognizant Technology Solutions Corp. has a 52-week low of $51.22 and a 52-week high of $69.80. The company has a market cap of $32.14 billion, a price-to-earnings ratio of 21.35 and a beta of 1.28.

Cognizant Technology Solutions Corp. (NASDAQ:CTSH) last posted its earnings results on Friday, August 5th. The information technology service provider reported $0.87 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.82 by $0.05. Cognizant Technology Solutions Corp. had a return on equity of 19.31% and a net margin of 11.65%. The company had revenue of $3.37 billion for the quarter, compared to analyst estimates of $3.37 billion. During the same quarter last year, the company earned $0.79 earnings per share. The company’s revenue for the quarter was up 9.2% on a year-over-year basis. On average, analysts predict that Cognizant Technology Solutions Corp. will post $3.37 earnings per share for the current fiscal year.

In other Cognizant Technology Solutions Corp. news, CFO Karen Mcloughlin sold 20,000 shares of Cognizant Technology Solutions Corp. stock in a transaction dated Friday, August 5th. The stock was sold at an average price of $60.00, for a total transaction of $1,200,000.00. Following the completion of the sale, the chief financial officer now owns 60,741 shares of the company’s stock, valued at $3,644,460. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Francisco Dsouza sold 100,000 shares of Cognizant Technology Solutions Corp. stock in a transaction dated Tuesday, July 26th. The stock was sold at an average price of $58.57, for a total value of $5,857,000.00. Following the sale, the chief executive officer now directly owns 422,602 shares of the company’s stock, valued at approximately $24,751,799.14. The disclosure for this sale can be found here. Company insiders own 0.81% of the company’s stock.

A number of large investors have recently modified their holdings of the company. Washington Trust Bank raised its stake in shares of Cognizant Technology Solutions Corp. by 6.8% in the second quarter. Washington Trust Bank now owns 1,789 shares of the information technology service provider’s stock valued at $102,000 after buying an additional 114 shares during the period. Exane Derivatives raised its stake in shares of Cognizant Technology Solutions Corp. by 29.0% in the first quarter. Exane Derivatives now owns 1,862 shares of the information technology service provider’s stock valued at $117,000 after buying an additional 419 shares during the period. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in shares of Cognizant Technology Solutions Corp. during the second quarter valued at about $123,000. First Manhattan Co. raised its stake in shares of Cognizant Technology Solutions Corp. by 16.8% in the second quarter. First Manhattan Co. now owns 2,523 shares of the information technology service provider’s stock valued at $144,000 after buying an additional 363 shares during the period. Finally, Assetmark Inc. raised its stake in shares of Cognizant Technology Solutions Corp. by 29.4% in the second quarter. Assetmark Inc. now owns 2,699 shares of the information technology service provider’s stock valued at $154,000 after buying an additional 613 shares during the period. 87.00% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Corp. Company Profile

Cognizant Technology Solutions Corporation is a provider of information technology (IT), consulting and business process services. The Company operates through four segments: Financial Services, which includes customers providing banking/transaction processing, capital markets and insurance services; Healthcare, which includes healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech and medical device companies; Manufacturing, Retail and Logistics, which includes manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services, and Other, which includes communications, manufacturing/retail/logistics, and high technology.

5 Day Chart for NASDAQ:CTSH

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