Cognizant Technology Solutions Co. (NASDAQ:CTSH) Sees Significant Increase in Short Interest


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Cognizant Technology Solutions Co. (NASDAQ:CTSH) saw a large growth in short interest in October. As of October 30th, there was short interest totalling 9,810,000 shares, a growth of 13.1% from the October 15th total of 8,670,000 shares. Based on an average daily volume of 3,030,000 shares, the short-interest ratio is presently 3.2 days. Currently, 1.8% of the shares of the stock are sold short.

Several analysts have recently commented on the stock. Robert W. Baird increased their price target on shares of Cognizant Technology Solutions from $68.00 to $72.00 and gave the company an “outperform” rating in a research note on Tuesday, July 28th. Zacks Investment Research upgraded Cognizant Technology Solutions from a “sell” rating to a “hold” rating and set a $67.00 price objective on the stock in a research report on Wednesday, July 29th. Wells Fargo & Company boosted their target price on Cognizant Technology Solutions from $70.00 to $78.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Wedbush upgraded Cognizant Technology Solutions from an “underweight” rating to an “underperform” rating and set a $68.00 price target on the stock in a report on Thursday, July 30th. Finally, BidaskClub lowered Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a research report on Thursday, November 5th. Four research analysts have rated the stock with a sell rating, ten have given a hold rating and eleven have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $71.83.

In other news, General Counsel Matthew W. Friedrich sold 1,250 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $68.84, for a total transaction of $86,050.00. Following the sale, the general counsel now owns 2,518 shares in the company, valued at $173,339.12. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Malcolm Frank sold 1,489 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $68.37, for a total transaction of $101,802.93. Following the transaction, the insider now owns 35,446 shares in the company, valued at approximately $2,423,443.02. The disclosure for this sale can be found here. Insiders sold a total of 60,085 shares of company stock worth $4,174,655 in the last 90 days. 0.31% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Kathmere Capital Management LLC bought a new stake in shares of Cognizant Technology Solutions in the third quarter valued at about $93,000. Advisor Partners LLC raised its position in Cognizant Technology Solutions by 12.3% in the 3rd quarter. Advisor Partners LLC now owns 11,624 shares of the information technology service provider’s stock valued at $807,000 after buying an additional 1,276 shares during the last quarter. Paces Ferry Wealth Advisors LLC bought a new stake in Cognizant Technology Solutions in the 3rd quarter valued at approximately $113,000. Keel Point LLC boosted its position in Cognizant Technology Solutions by 10.3% during the 3rd quarter. Keel Point LLC now owns 33,386 shares of the information technology service provider’s stock worth $2,318,000 after acquiring an additional 3,130 shares during the last quarter. Finally, Public Employees Retirement System of Ohio grew its stake in shares of Cognizant Technology Solutions by 1.1% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 303,192 shares of the information technology service provider’s stock worth $21,048,000 after acquiring an additional 3,273 shares in the last quarter. 82.32% of the stock is owned by hedge funds and other institutional investors.

Shares of NASDAQ:CTSH traded down $0.30 during trading on Friday, hitting $75.90. 2,277,130 shares of the company’s stock traded hands, compared to its average volume of 3,674,674. The company has a current ratio of 2.62, a quick ratio of 2.61 and a debt-to-equity ratio of 0.22. The company has a 50-day moving average price of $73.30 and a 200-day moving average price of $63.97. Cognizant Technology Solutions has a 52 week low of $40.01 and a 52 week high of $78.47. The company has a market cap of $41.16 billion, a price-to-earnings ratio of 28.11, a price-to-earnings-growth ratio of 1.94 and a beta of 1.15.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, October 28th. The information technology service provider reported $0.97 EPS for the quarter, topping the consensus estimate of $0.90 by $0.07. The firm had revenue of $4.24 billion for the quarter, compared to the consensus estimate of $4.15 billion. Cognizant Technology Solutions had a net margin of 8.78% and a return on equity of 19.04%. On average, analysts predict that Cognizant Technology Solutions will post 3.65 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 30th. Investors of record on Thursday, November 19th will be given a $0.22 dividend. The ex-dividend date is Wednesday, November 18th. This represents a $0.88 annualized dividend and a yield of 1.16%. Cognizant Technology Solutions’s dividend payout ratio is currently 22.06%.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology.

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