Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives $63.00 Consensus Target Price from Analysts

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) have earned an average rating of “Hold” from the twenty-four analysts that are currently covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, thirteen have given a hold recommendation and ten have assigned a buy recommendation to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $63.00.

A number of brokerages recently weighed in on CTSH. Mizuho set a $64.00 price target on shares of Cognizant Technology Solutions in a research report on Thursday, August 6th. Susquehanna set a $82.00 target price on shares of Cognizant Technology Solutions and gave the stock a “positive” rating in a research note on Thursday, July 30th. Wedbush upgraded Cognizant Technology Solutions from a “neutral” rating to an “outperform” rating and boosted their price target for the company from $56.00 to $70.00 in a report on Monday, June 8th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Cognizant Technology Solutions in a research report on Friday, August 7th. Finally, Guggenheim reiterated a “buy” rating and set a $65.00 price objective (down from $80.00) on shares of Cognizant Technology Solutions in a report on Monday, July 27th.

Cognizant Technology Solutions Trading Up 2.9%

Shares of CTSH stock opened at $60.00 on Wednesday. The stock has a market cap of $27.03 billion, a price-to-earnings ratio of 12.90, a P/E/G ratio of 1.09 and a beta of 0.83. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.18 and a current ratio of 2.18. Cognizant Technology Solutions has a 52-week low of $37.08 and a 52-week high of $87.03. The firm has a fifty day moving average of $54.42 and a 200-day moving average of $54.87.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%.The business had revenue of $5.48 billion during the quarter, compared to analyst estimates of $5.48 billion. During the same period in the prior year, the firm posted $1.31 EPS. Cognizant Technology Solutions’s revenue for the quarter was up 4.5% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. On average, equities research analysts forecast that Cognizant Technology Solutions will post 5.71 earnings per share for the current fiscal year.

Cognizant Technology Solutions declared that its board has authorized a share repurchase plan on Monday, May 18th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the information technology service provider to reacquire up to 9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Cognizant Technology Solutions Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, August 18th were given a $0.33 dividend. The ex-dividend date of this dividend was Tuesday, August 18th. This represents a $1.32 dividend on an annualized basis and a yield of 2.2%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 28.39%.

Institutional Trading of Cognizant Technology Solutions

Hedge funds and other institutional investors have recently modified their holdings of the stock. Evolve Private Wealth LLC acquired a new stake in Cognizant Technology Solutions during the 4th quarter valued at $2,642,000. Aware Super Pty Ltd as trustee of Aware Super bought a new position in shares of Cognizant Technology Solutions in the first quarter valued at about $29,510,000. Ancora Advisors LLC acquired a new position in Cognizant Technology Solutions in the 2nd quarter valued at about $2,929,000. Pzena Investment Management LLC boosted its holdings in shares of 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 during the period. Finally, Arrowstreet Capital Limited Partnership boosted its stake in Cognizant Technology Solutions by 34.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,874,274 shares of the information technology service provider’s stock valued at $238,565,000 after purchasing an additional 734,337 shares during the period. Institutional investors and hedge funds own 92.44% of the company’s stock.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation is a professional services and information technology company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company provides consulting, systems integration, application development and maintenance, and business process services to clients across industries.

Its offerings include cloud enablement, software engineering, data and analytics, artificial intelligence, cybersecurity, automation and digital workplace solutions.