Zacks Investment Research downgraded shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a buy rating to a hold rating in a report released on Friday morning.
According to Zacks, “Cognizant’s 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. The company’s ability to harness the ongoing digital transition is a tailwind. The company is also benefiting from accretive acquisitions and share repurchase program. Cognizant has also gained deep industry expertise and knowledge of the domains through partnerships with top firms like Microsoft and SAP. Estimates have been stable lately ahead of the company’s Q4 earnings release. The company has mixed record of earnings surprises in recent quarters. 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 weighed in on the company. Barclays upped their target price on Cognizant Technology Solutions from $80.00 to $90.00 and gave the stock an overweight rating in a research report on Monday, October 30th. They noted that the move was a valuation call. Royal Bank of Canada restated a buy rating and issued a $77.00 target price on shares of Cognizant Technology Solutions in a research report on Sunday, October 8th. Robert W. Baird upped their target price on Cognizant Technology Solutions from $80.00 to $90.00 and gave the stock an outperform rating in a research report on Thursday, October 19th. Pivotal Research started coverage on Cognizant Technology Solutions in a research report on Wednesday, November 8th. They issued a buy rating and a $93.00 target price for the company. Finally, BidaskClub downgraded Cognizant Technology Solutions from a buy rating to a hold rating in a research report on Tuesday, December 5th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, twenty have issued a buy rating and two have issued a strong buy rating to the company. The company has an average rating of Buy and a consensus price target of $81.75.
Cognizant Technology Solutions (NASDAQ:CTSH) traded up $0.55 on Friday, reaching $74.56. The company’s stock had a trading volume of 3,767,600 shares, compared to its average volume of 3,740,000. The firm has a market capitalization of $43,960.00, a P/E ratio of 23.08, a price-to-earnings-growth ratio of 1.42 and a beta of 1.08. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.29 and a quick ratio of 3.29. Cognizant Technology Solutions has a 12-month low of $51.52 and a 12-month high of $76.51.
Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, November 1st. The information technology service provider reported $0.98 earnings per share for the quarter, topping analysts’ consensus estimates of $0.85 by $0.13. The firm had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.77 billion. Cognizant Technology Solutions had a return on equity of 18.94% and a net margin of 13.42%. The firm’s revenue for the quarter was up 9.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.86 earnings per share. research analysts predict that Cognizant Technology Solutions will post 3.35 earnings per share for the current fiscal year.
In other Cognizant Technology Solutions news, insider Gajakarnan Vibushanan Kandiah sold 3,000 shares of the company’s stock in a transaction on Friday, December 15th. The stock was sold at an average price of $72.18, for a total value of $216,540.00. Following the transaction, the insider now owns 7,724 shares of the company’s stock, valued at $557,518.32. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Francisco Dsouza sold 240,000 shares of the company’s stock in a transaction on Thursday, January 11th. The shares were sold at an average price of $74.04, for a total value of $17,769,600.00. Following the completion of the transaction, the chief executive officer now directly owns 541,667 shares in the company, valued at approximately $40,105,024.68. The disclosure for this sale can be found here. Insiders sold 807,286 shares of company stock worth $58,679,209 in the last ninety days. 1.08% of the stock is owned by corporate insiders.
A number of large investors have recently made changes to their positions in CTSH. FMR LLC raised its stake in Cognizant Technology Solutions by 81.6% during the 2nd quarter. FMR LLC now owns 25,065,752 shares of the information technology service provider’s stock valued at $1,664,366,000 after purchasing an additional 11,262,360 shares during the period. Harding Loevner LP raised its stake in Cognizant Technology Solutions by 2,085,162.4% during the 3rd quarter. Harding Loevner LP now owns 3,544,946 shares of the information technology service provider’s stock valued at $142,254,000 after purchasing an additional 3,544,776 shares during the period. Comgest Global Investors S.A.S. raised its stake in Cognizant Technology Solutions by 24.5% during the 3rd quarter. Comgest Global Investors S.A.S. now owns 7,416,617 shares of the information technology service provider’s stock valued at $538,001,000 after purchasing an additional 1,461,800 shares during the period. Edgewood Management LLC raised its stake in Cognizant Technology Solutions by 9.3% during the 3rd quarter. Edgewood Management LLC now owns 16,915,676 shares of the information technology service provider’s stock valued at $1,227,063,000 after purchasing an additional 1,443,368 shares during the period. Finally, BT Investment Management Ltd acquired a new stake in Cognizant Technology Solutions during the 2nd quarter valued at $83,134,000. 85.98% of the stock is currently owned by institutional investors.
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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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