Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives Average Recommendation of “Hold” from Brokerages

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) have earned an average recommendation of “Hold” from the twenty-two analysts that are presently covering the stock, Marketbeat reports. Twelve equities research analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $73.00.

Several research analysts have recently weighed in on the stock. Jefferies Financial Group decreased their price objective on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating for the company in a report on Monday, May 4th. JPMorgan Chase & Co. reduced their target price on shares of Cognizant Technology Solutions from $92.00 to $74.00 and set an “overweight” rating for the company in a report on Tuesday, April 28th. Susquehanna reduced their target price on shares of Cognizant Technology Solutions from $98.00 to $88.00 and set a “positive” rating for the company in a report on Friday, May 1st. UBS Group reduced their target price on shares of Cognizant Technology Solutions from $60.00 to $55.00 in a report on Monday, May 11th. Finally, The Goldman Sachs Group set a $75.00 target price on shares of Cognizant Technology Solutions in a report on Wednesday, April 29th.

Cognizant Technology Solutions Price Performance

CTSH opened at $55.76 on Monday. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04. The firm has a 50 day moving average price of $56.31 and a 200-day moving average price of $69.11. Cognizant Technology Solutions has a twelve month low of $45.48 and a twelve month high of $87.03. The stock has a market capitalization of $26.42 billion, a price-to-earnings ratio of 12.12, a PEG ratio of 1.17 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The firm had revenue of $5.41 billion during the quarter, compared to analysts’ expectations of $5.41 billion. During the same period in the previous year, the company earned $1.23 earnings per share. The firm’s quarterly revenue was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Equities research analysts forecast that Cognizant Technology Solutions will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions announced that its Board of Directors has approved a share buyback plan on Monday, May 18th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the information technology service provider to purchase up to 9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

Cognizant Technology Solutions Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio is currently 28.70%.

Institutional Trading of Cognizant Technology Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Checchi Capital Advisers LLC increased its holdings in Cognizant Technology Solutions by 3.4% during the fourth quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider’s stock valued at $320,000 after buying an additional 127 shares during the last quarter. Unison Advisors LLC increased its holdings in Cognizant Technology Solutions by 0.5% during the fourth quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider’s stock valued at $2,498,000 after buying an additional 138 shares during the last quarter. TD Waterhouse Canada Inc. boosted its position in shares of Cognizant Technology Solutions by 7.2% in the fourth quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider’s stock worth $177,000 after purchasing an additional 143 shares during the period. Security National Bank of SO Dak boosted its position in shares of Cognizant Technology Solutions by 0.6% in the second quarter. Security National Bank of SO Dak now owns 24,635 shares of the information technology service provider’s stock worth $1,922,000 after purchasing an additional 150 shares during the period. Finally, Haven Private LLC boosted its position in shares of Cognizant Technology Solutions by 1.9% in the third quarter. Haven Private LLC now owns 8,451 shares of the information technology service provider’s stock worth $567,000 after purchasing an additional 157 shares during the period. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Company Profile

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.