Cognizant Technology Solutions (CTSH) Upgraded to Buy at Zacks Investment Research

Cognizant Technology Solutions (NASDAQ:CTSH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm currently has a $87.00 price target on the information technology service provider’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 11.38% from the stock’s current price.

According to Zacks, “Cognizant reported impressive fourth-quarter 2017 results. Both earnings and revenues increased on a year-over-year basis. Growth can be attributed to its significant exposure to the fast-growing verticals like financial services and healthcare. Higher demand from payer and top-tier consulting clients in the healthcare segment will help to sustain the growth momentum. Cognizant is benefiting from domain expertise as well as its ability to harness the ongoing digital transition. The company is also significantly gaining from accretive acquisitions and share repurchase program. In the past one-year, Cognizant has outperformed the industry it belongs to. However, the company faces significant geographic, domain and customer concentration risks which can negatively impact its business. Besides, stiff competition in the IT services market remains a concern.”

A number of other equities research analysts also recently commented on the stock. BidaskClub upgraded shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a research report on Tuesday. Credit Suisse Group set a $100.00 target price on shares of Cognizant Technology Solutions and gave the company a “buy” rating in a report on Friday. Loop Capital increased their target price on shares of Cognizant Technology Solutions to $90.00 and gave the company a “buy” rating in a report on Thursday, February 8th. Bank of America increased their target price on shares of Cognizant Technology Solutions from $86.00 to $89.00 and gave the company a “buy” rating in a report on Thursday, February 8th. Finally, Nomura increased their target price on shares of Cognizant Technology Solutions from $71.00 to $79.00 and gave the company a “neutral” rating in a report on Thursday, February 8th. Four analysts have rated the stock with a hold rating, twenty-three have given a buy rating and two have given a strong buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $84.32.

Shares of Cognizant Technology Solutions (NASDAQ CTSH) traded up $0.68 during trading hours on Tuesday, reaching $78.11. 4,105,143 shares of the company were exchanged, compared to its average volume of 4,051,217. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.29 and a current ratio of 3.21. The firm has a market capitalization of $45,700.00, a P/E ratio of 31.00, a P/E/G ratio of 1.53 and a beta of 1.11. Cognizant Technology Solutions has a 1 year low of $57.00 and a 1 year high of $79.28.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, February 7th. The information technology service provider reported $1.03 EPS for the quarter, beating the Zacks’ consensus estimate of $0.88 by $0.15. The firm had revenue of $3.83 billion during the quarter, compared to the consensus estimate of $3.82 billion. Cognizant Technology Solutions had a net margin of 10.15% and a return on equity of 19.94%. The firm’s revenue was up 10.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.87 earnings per share. analysts predict that Cognizant Technology Solutions will post 3.97 earnings per share for the current fiscal year.

In related news, CEO Francisco Dsouza sold 482,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 21st. The shares were sold at an average price of $72.04, for a total transaction of $34,723,280.00. Following the sale, the chief executive officer now owns 621,643 shares in the company, valued at $44,783,161.72. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, President Rajeev Mehta sold 42,563 shares of the firm’s stock in a transaction that occurred on Monday, January 22nd. The stock was sold at an average price of $77.50, for a total transaction of $3,298,632.50. Following the sale, the president now owns 35,020 shares in the company, valued at approximately $2,714,050. The disclosure for this sale can be found here. Over the last three months, insiders have sold 994,079 shares of company stock valued at $73,129,749. Corporate insiders own 1.08% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in CTSH. Harding Loevner LP boosted its position in Cognizant Technology Solutions by 2,085,162.4% during the third quarter. Harding Loevner LP now owns 3,544,946 shares of the information technology service provider’s stock worth $142,254,000 after acquiring an additional 3,544,776 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Cognizant Technology Solutions by 296.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 4,422,593 shares of the information technology service provider’s stock valued at $314,093,000 after purchasing an additional 3,307,799 shares during the last quarter. Winslow Capital Management LLC acquired a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $217,524,000. APG Asset Management N.V. boosted its holdings in shares of Cognizant Technology Solutions by 241.2% in the 4th quarter. APG Asset Management N.V. now owns 3,580,820 shares of the information technology service provider’s stock valued at $211,784,000 after purchasing an additional 2,531,494 shares during the last quarter. Finally, Genesis Asset Managers LLP boosted its holdings in shares of Cognizant Technology Solutions by 92.3% in the 4th quarter. Genesis Asset Managers LLP now owns 3,738,507 shares of the information technology service provider’s stock valued at $265,509,000 after purchasing an additional 1,794,164 shares during the last quarter. Hedge funds and other institutional investors own 86.87% of the company’s stock.

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About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation is a professional services company. The Company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. The Financial Services segment includes customers providing banking/transaction processing, capital markets and insurance services.

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