Cognizant Technology Solutions (NASDAQ:CTSH) Trading Up 7.2% – Still a Buy?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s stock price was up 7.2% on Tuesday . The company traded as high as $50.23 and last traded at $50.42. Approximately 1,472,013 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 8,176,103 shares. The stock had previously closed at $47.05.

Analyst Ratings Changes

CTSH has been the subject of a number of recent analyst reports. Truist Financial assumed coverage on Cognizant Technology Solutions in a research report on Monday, June 1st. They issued a “hold” rating and a $66.00 price objective for the company. Robert W. Baird dropped their price objective on Cognizant Technology Solutions from $72.00 to $55.00 and set a “neutral” rating for the company in a report on Friday, July 10th. The Goldman Sachs Group set a $75.00 price target on Cognizant Technology Solutions in a research report on Wednesday, April 29th. Dbs Bank cut their price objective on Cognizant Technology Solutions from $80.00 to $66.00 in a report on Thursday, May 7th. Finally, UBS Group dropped their target price on shares of Cognizant Technology Solutions from $60.00 to $55.00 in a research report on Monday, May 11th. Ten analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, Cognizant Technology Solutions has a consensus rating of “Hold” and a consensus target price of $61.35.

Cognizant Technology Solutions Trading Up 7.5%

The firm has a market cap of $23.98 billion, a price-to-earnings ratio of 11.00, a price-to-earnings-growth ratio of 0.99 and a beta of 0.87. 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 business has a 50 day moving average price of $47.05 and a 200-day moving average price of $59.25.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The firm 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%.Cognizant Technology Solutions’s quarterly revenue was up 5.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, research analysts expect that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 28.70%.

Cognizant Technology Solutions announced that its board has initiated a stock repurchase program on Monday, May 18th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the information technology service provider to repurchase up to 9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Trading of Cognizant Technology Solutions

A number of hedge funds have recently made changes to their positions in CTSH. JPL Wealth Management LLC acquired a new stake in Cognizant Technology Solutions in the third quarter valued at $25,000. Lodestone Wealth Management LLC bought a new stake in shares of Cognizant Technology Solutions in the 4th quarter worth about $28,000. Flagship Harbor Advisors LLC acquired a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at about $28,000. Physician Wealth Advisors Inc. lifted its position in shares of Cognizant Technology Solutions by 165.1% during the fourth 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 during the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in Cognizant Technology Solutions in the fourth quarter worth about $29,000. Institutional investors and hedge funds own 92.44% of the company’s stock.

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.