Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Given Consensus Rating of “Hold” by Brokerages

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has earned an average recommendation of “Hold” from the twenty-two research firms that are currently covering the company, Marketbeat.com reports. Twelve research analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 12 month price target among brokerages that have covered the stock in the last year is $90.1667.

A number of brokerages have recently weighed in on CTSH. BMO Capital Markets set a $83.00 price objective on shares of Cognizant Technology Solutions in a research note on Thursday, February 12th. The Goldman Sachs Group reiterated a “neutral” rating and set a $84.00 target price on shares of Cognizant Technology Solutions in a report on Wednesday, October 29th. UBS Group reissued a “neutral” rating and issued a $82.00 price target (up from $78.00) on shares of Cognizant Technology Solutions in a report on Monday, December 8th. William Blair upgraded Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a research report on Friday, November 21st. Finally, Guggenheim reiterated a “buy” rating and set a $100.00 price objective (up previously from $95.00) on shares of Cognizant Technology Solutions in a research report on Wednesday, January 28th.

Insider Activity

In related news, CEO Ravi Kumar Singisetti sold 3,125 shares of the firm’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $80.01, for a total transaction of $250,031.25. Following the sale, the chief executive officer owned 75,454 shares in the company, valued at approximately $6,037,074.54. This trade represents a 3.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Surya Gummadi sold 1,728 shares of the company’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $83.06, for a total value of $143,527.68. Following the completion of the transaction, the insider owned 25,641 shares of the company’s stock, valued at $2,129,741.46. The trade was a 6.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 29,434 shares of company stock worth $2,460,809. 0.32% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter worth about $214,000. Geneos Wealth Management Inc. increased its holdings in Cognizant Technology Solutions by 118.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider’s stock worth $44,000 after purchasing an additional 309 shares during the last quarter. Acadian Asset Management LLC acquired a new position in shares of Cognizant Technology Solutions in the 1st quarter valued at approximately $142,000. Ethic Inc. boosted its stake in shares of Cognizant Technology Solutions by 2.9% during the 2nd quarter. Ethic Inc. now owns 66,405 shares of the information technology service provider’s stock valued at $5,162,000 after buying an additional 1,857 shares during the last quarter. Finally, Forum Financial Management LP increased its stake in shares of Cognizant Technology Solutions by 39.9% in the second quarter. Forum Financial Management LP now owns 9,462 shares of the information technology service provider’s stock worth $738,000 after buying an additional 2,699 shares during the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Trading Up 0.1%

NASDAQ:CTSH opened at $65.03 on Friday. Cognizant Technology Solutions has a 52-week low of $63.83 and a 52-week high of $87.54. The company has a quick ratio of 2.14, a current ratio of 2.14 and a debt-to-equity ratio of 0.04. The stock has a fifty day simple moving average of $80.36 and a 200-day simple moving average of $74.57. The company has a market capitalization of $31.39 billion, a PE ratio of 14.29, a price-to-earnings-growth ratio of 1.41 and a beta of 0.95.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 EPS for the quarter, beating analysts’ consensus estimates of $1.32 by $0.03. The firm had revenue of $5.33 billion for the quarter, compared to analysts’ expectations of $5.31 billion. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. The firm’s revenue was up 4.9% on a year-over-year basis. During the same period in the prior year, the company earned $1.21 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. On average, equities research analysts expect that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, February 26th. Stockholders of record on Wednesday, February 18th will be issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. The ex-dividend date is Wednesday, February 18th. Cognizant Technology Solutions’s payout ratio is presently 29.01%.

About Cognizant Technology Solutions

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.