Cognizant Technology Solutions Corp. (NASDAQ:CTSH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued 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 firms have also issued reports on CTSH. Goldman Sachs Group Inc. lowered shares of Cognizant Technology Solutions Corp. from a “buy” rating to a “neutral” rating and lowered their target price for the company from $68.00 to $61.00 in a research note on Thursday, September 15th. Credit Agricole SA lowered shares of Cognizant Technology Solutions Corp. from an “outperform” rating to an “underperform” rating and lowered their target price for the company from $70.00 to $60.00 in a research note on Wednesday, September 14th. Vetr upgraded shares of 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 research note on Monday, September 12th. Wedbush initiated coverage on shares of Cognizant Technology Solutions Corp. in a research note on Thursday, September 8th. They issued a “neutral” rating and a $65.00 target price on the stock. Finally, Cantor Fitzgerald reiterated a “buy” rating and issued a $68.00 target price on shares of Cognizant Technology Solutions Corp. in a research note on Wednesday, September 7th. Two 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 company. The company has a consensus rating of “Buy” and an average price target of $66.87.

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

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Shares of Cognizant Technology Solutions Corp. (NASDAQ:CTSH) opened at 52.96 on Wednesday. Cognizant Technology Solutions Corp. has a 1-year low of $51.22 and a 1-year high of $69.80. The firm has a market cap of $32.14 billion, a price-to-earnings ratio of 21.35 and a beta of 1.28. The company’s 50-day moving average is $57.01 and its 200 day moving average is $58.98.

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

In other news, CFO Karen Mcloughlin sold 20,000 shares of Cognizant Technology Solutions Corp. stock in a transaction that occurred on Friday, August 5th. The shares were 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 in the company, valued at approximately $3,644,460. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Francisco Dsouza sold 200,000 shares of Cognizant Technology Solutions Corp. stock in a transaction that occurred on Friday, July 29th. The stock was sold at an average price of $57.69, for a total transaction of $11,538,000.00. Following the sale, the chief executive officer now owns 422,602 shares of the company’s stock, valued at approximately $24,379,909.38. The disclosure for this sale can be found here. 0.81% of the stock is currently owned by company insiders.

Large investors have recently modified their holdings of the company. Washington Trust Bank boosted 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 in the last quarter. Exane Derivatives boosted 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 in the last quarter. Harel Insurance Investments & Financial Services Ltd. acquired a new stake in shares of Cognizant Technology Solutions Corp. during the second quarter valued at approximately $123,000. First Manhattan Co. boosted 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 in the last quarter. Finally, Assetmark Inc. boosted 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 in the last quarter. Institutional investors own 87.00% of the company’s stock.

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.

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