Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 52-Week Low – Time to Sell?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) shares hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $44.77 and last traded at $45.0060, with a volume of 4831201 shares trading hands. The stock had previously closed at $48.82.

Analyst Ratings Changes

CTSH has been the topic of several research reports. Morgan Stanley lowered their target price on Cognizant Technology Solutions from $70.00 to $63.00 and set an “equal weight” rating on the stock in a research note on Thursday, April 30th. Wedbush upgraded Cognizant Technology Solutions from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $56.00 to $70.00 in a research note on Monday, June 8th. Mizuho lowered their target price 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. Wells Fargo & Company lowered their target price on Cognizant Technology Solutions from $98.00 to $83.00 and set an “overweight” rating on the stock in a research note on Thursday, April 30th. Finally, Truist Financial initiated coverage on Cognizant Technology Solutions in a research note on Monday, June 1st. They issued a “hold” rating and a $66.00 target price on the stock. Ten investment analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $72.50.

Cognizant Technology Solutions Stock Performance

The company has a market capitalization of $20.76 billion, a PE ratio of 9.53, a PEG ratio of 1.07 and a beta of 0.81. 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 50-day moving average price of $54.05 and a two-hundred day moving average price of $67.15.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings results 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. The company had revenue of $5.41 billion during the quarter, compared to analysts’ expectations of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The firm’s quarterly revenue was up 5.8% compared to the same quarter last year. During the same period in the previous year, the business earned $1.23 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Analysts predict that Cognizant Technology Solutions Corporation will post 5.7 EPS 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. Investors of record on Monday, May 18th were given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 3.0%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s payout ratio is presently 28.70%.

Cognizant Technology Solutions declared that its board has approved a stock buyback 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 stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Flagship Harbor Advisors LLC purchased a new position in Cognizant Technology Solutions during the fourth quarter worth about $28,000. Physician Wealth Advisors Inc. boosted its holdings in shares of Cognizant Technology Solutions by 165.1% in the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock worth $28,000 after purchasing an additional 213 shares in the last quarter. Lodestone Wealth Management LLC purchased a new position in shares of Cognizant Technology Solutions in the 4th quarter worth about $28,000. Prosperity Bancshares Inc purchased a new position in shares of Cognizant Technology Solutions in the 4th quarter worth about $29,000. Finally, Towne Trust Company N.A boosted its holdings in shares of Cognizant Technology Solutions by 85.0% in the 4th quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider’s stock worth $31,000 after purchasing an additional 170 shares in the last quarter. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

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.