Citigroup Issues Pessimistic Forecast for Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price

Cognizant Technology Solutions (NASDAQ:CTSH) had its price objective cut by equities researchers at Citigroup from $55.00 to $45.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a “neutral” rating on the information technology service provider’s stock. Citigroup’s price target would suggest a potential upside of 1.98% from the company’s previous close.

A number of other equities analysts also recently commented on the company. Morgan Stanley set a $44.00 price objective on Cognizant Technology Solutions and gave the stock an “equal weight” rating in a report on Tuesday, June 23rd. Berenberg Bank set a $59.00 price target on shares of Cognizant Technology Solutions and gave the stock a “hold” rating in a research note on Wednesday, June 17th. Guggenheim cut their price target on shares of Cognizant Technology Solutions from $85.00 to $80.00 and set a “buy” rating on the stock in a report on Thursday, April 30th. Dbs Bank reduced their price objective on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a research note on Thursday, May 7th. Finally, Mizuho lowered their target price on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $64.26.

Cognizant Technology Solutions Stock Up 3.7%

Shares of NASDAQ:CTSH traded up $1.55 during midday trading on Monday, hitting $44.12. 4,183,702 shares of the stock were exchanged, compared to its average volume of 8,232,532. The company has a market capitalization of $20.91 billion, a PE ratio of 9.60, a P/E/G ratio of 0.90 and a beta of 0.87. Cognizant Technology Solutions has a 52-week low of $37.08 and a 52-week high of $87.03. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. The business’s fifty day simple moving average is $48.26 and its two-hundred day simple moving average is $62.33.

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

Cognizant Technology Solutions declared that its board has initiated a share repurchase plan on Monday, May 18th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the information technology service provider to repurchase up to 9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Cognizant Technology Solutions

Hedge funds have recently bought and sold shares of the company. Checchi Capital Advisers LLC increased its stake in shares of Cognizant Technology Solutions by 3.4% in the fourth quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider’s stock worth $320,000 after purchasing an additional 127 shares during the period. Unison Advisors LLC increased its position in Cognizant Technology Solutions by 0.5% in the 4th quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider’s stock worth $2,498,000 after buying an additional 138 shares during the period. TD Waterhouse Canada Inc. increased its position in Cognizant Technology Solutions by 7.2% in the 4th quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider’s stock worth $177,000 after buying an additional 143 shares during the period. Security National Bank of SO Dak lifted its holdings in shares of Cognizant Technology Solutions by 0.6% during 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 buying an additional 150 shares during the last quarter. Finally, Cidel Asset Management Inc. boosted its position in shares of Cognizant Technology Solutions by 3.0% in the fourth quarter. Cidel Asset Management Inc. now owns 5,535 shares of the information technology service provider’s stock valued at $459,000 after acquiring an additional 163 shares during the period. 92.44% of the stock is currently owned by 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.