Cognizant Technology Solutions (NASDAQ:CTSH) Price Target Raised to $55.00 at Citigroup

Cognizant Technology Solutions (NASDAQ:CTSH) had its price objective hoisted by equities research analysts at Citigroup from $51.00 to $55.00 in a research note issued to investors on Monday,MarketScreener reports. The firm currently has a “neutral” rating on the information technology service provider’s stock. Citigroup’s target price suggests a potential upside of 2.94% from the stock’s previous close.

Other research analysts also recently issued research reports about the company. Mizuho cut their price target on Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 6th. The Goldman Sachs Group set a $75.00 price objective on Cognizant Technology Solutions in a report on Wednesday, April 29th. BMO Capital Markets reduced their target price on Cognizant Technology Solutions from $83.00 to $63.00 in a report on Thursday, April 30th. TD Cowen restated a “hold” rating and set a $62.00 target price (down from $71.00) on shares of Cognizant Technology Solutions in a research report on Thursday, April 30th. Finally, Argus upgraded shares of Cognizant Technology Solutions to a “hold” rating in a research report on Tuesday, February 10th. Eleven investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, Cognizant Technology Solutions currently has a consensus rating of “Hold” and a consensus target price of $73.50.

Cognizant Technology Solutions Trading Up 0.4%

NASDAQ:CTSH traded up $0.22 on Monday, hitting $53.43. 1,707,737 shares of the stock were exchanged, compared to its average volume of 6,966,197. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. Cognizant Technology Solutions has a 52 week low of $45.48 and a 52 week high of $87.03. The stock has a market capitalization of $25.32 billion, a price-to-earnings ratio of 11.60, a P/E/G ratio of 1.12 and a beta of 0.81. The company’s 50-day moving average price is $55.65 and its 200 day moving average price is $68.46.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, topping 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 company had revenue of $5.41 billion during the quarter, compared to analysts’ expectations of $5.41 billion. During the same quarter in the previous year, the company earned $1.23 EPS. Cognizant Technology Solutions’s 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. On average, equities research analysts forecast that Cognizant Technology Solutions will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions declared that its Board of Directors has authorized a stock repurchase program 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 programs are often a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in shares of Cognizant Technology Solutions by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 60,348,442 shares of the information technology service provider’s stock valued at $4,047,570,000 after acquiring an additional 493,912 shares in the last quarter. Pzena Investment Management LLC raised its holdings in Cognizant Technology Solutions by 14.9% during the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock worth $1,243,096,000 after acquiring an additional 2,633,683 shares in the last quarter. Invesco Ltd. boosted its position in Cognizant Technology Solutions by 8.6% during the third quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider’s stock valued at $840,669,000 after purchasing an additional 987,395 shares during the last quarter. First Trust Advisors LP grew its stake in Cognizant Technology Solutions by 7.6% in the third quarter. First Trust Advisors LP now owns 9,085,998 shares of the information technology service provider’s stock valued at $609,398,000 after purchasing an additional 639,801 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $690,959,000. 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.