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

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) have been given an average recommendation of “Hold” by the twenty-four research firms that are covering the firm, Marketbeat reports. Fourteen investment analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $70.3478.

Several equities analysts have issued reports on the stock. Robert W. Baird set a $72.00 price objective on shares of Cognizant Technology Solutions and gave the company a “neutral” rating in a report on Friday, April 10th. Weiss Ratings downgraded shares of Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, May 13th. Wedbush upgraded shares of Cognizant Technology Solutions from a “neutral” rating to an “outperform” rating and increased their target price for the company from $56.00 to $70.00 in a research report on Monday, June 8th. Nomura increased their target price on shares of Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Finally, 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 research report on Tuesday, April 28th.

Cognizant Technology Solutions Stock Performance

CTSH opened at $39.15 on Friday. 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 company has a market cap of $18.55 billion, a price-to-earnings ratio of 8.51, a PEG ratio of 0.87 and a beta of 0.81. Cognizant Technology Solutions has a 52-week low of $38.97 and a 52-week high of $87.03. The firm’s fifty day simple moving average is $51.86 and its two-hundred day simple moving average is $65.59.

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

Cognizant Technology Solutions Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio is 28.70%.

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

Institutional Investors Weigh In On Cognizant Technology Solutions

Hedge funds have recently modified their holdings of the business. Flagship Harbor Advisors LLC acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at about $28,000. Physician Wealth Advisors Inc. raised its position in shares of Cognizant Technology Solutions by 165.1% in the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock valued at $28,000 after buying an additional 213 shares during the last quarter. Lodestone Wealth Management LLC acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at about $28,000. Prosperity Bancshares Inc acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at about $29,000. Finally, Towne Trust Company N.A raised its position in shares of Cognizant Technology Solutions by 85.0% in the fourth quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider’s stock valued at $31,000 after buying an additional 170 shares during the last quarter. 92.44% of the stock is currently owned by institutional investors and hedge funds.

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.