Brokerages Set Cognizant Technology Solutions Corporation (NASDAQ:CTSH) PT at $88.78

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has received a consensus recommendation of “Hold” from the twenty-one research firms that are currently covering the company, MarketBeat reports. Twelve research analysts have rated the stock with a hold recommendation and nine have given a buy recommendation to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $88.7778.

Several equities research analysts recently weighed in on the stock. Susquehanna reaffirmed a “positive” rating and set a $98.00 target price on shares of Cognizant Technology Solutions in a research note on Friday, January 23rd. Royal Bank Of Canada raised their price target on shares of Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a “sector perform” rating in a research report on Thursday, February 5th. Berenberg Bank set a $107.00 price target on shares of Cognizant Technology Solutions and gave the stock a “buy” rating in a research note on Thursday, January 22nd. Citigroup reaffirmed a “neutral” rating and set a $86.00 price objective (up from $75.00) on shares of Cognizant Technology Solutions in a research report on Thursday, January 22nd. Finally, Mizuho set a $87.00 target price on Cognizant Technology Solutions in a report on Monday, February 9th.

Cognizant Technology Solutions Stock Performance

Shares of Cognizant Technology Solutions stock opened at $60.24 on Wednesday. The stock has a market capitalization of $28.81 billion, a price-to-earnings ratio of 13.24, a price-to-earnings-growth ratio of 1.34 and a beta of 0.99. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.14 and a quick ratio of 2.14. The business has a 50-day moving average of $70.82 and a 200 day moving average of $73.34. Cognizant Technology Solutions has a 12 month low of $59.35 and a 12 month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.32 by $0.03. The company had revenue of $5.33 billion for the quarter, compared to analyst estimates of $5.31 billion. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. The business’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. As a group, sell-side analysts forecast that Cognizant Technology Solutions will post 4.98 earnings per share for the current year.

Cognizant Technology Solutions Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Wednesday, February 18th were given a $0.33 dividend. The ex-dividend date of this dividend was Wednesday, February 18th. This represents a $1.32 dividend on an annualized basis and a yield of 2.2%. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. Cognizant Technology Solutions’s dividend payout ratio is 29.01%.

Insider Activity

In other news, insider Surya Gummadi sold 1,728 shares of the business’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $83.06, for a total transaction of $143,527.68. Following the completion of the transaction, the insider directly owned 25,641 shares of the company’s stock, valued at approximately $2,129,741.46. The trade was a 6.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Michael Patsalos-Fox sold 3,000 shares of the company’s stock in a transaction that occurred on Monday, December 29th. The stock was sold at an average price of $85.17, for a total transaction of $255,510.00. Following the sale, the director owned 34,729 shares in the company, valued at $2,957,868.93. The trade was a 7.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 6,859 shares of company stock valued at $575,460 in the last quarter. Company insiders own 0.32% of the company’s stock.

Institutional Investors Weigh In On Cognizant Technology Solutions

Institutional investors have recently modified their holdings of the company. Norges Bank purchased a new position in Cognizant Technology Solutions in the fourth quarter valued at $690,959,000. GQG Partners LLC purchased a new stake in Cognizant Technology Solutions during the 4th quarter worth about $673,651,000. CIBC Bancorp USA Inc. acquired a new position in shares of Cognizant Technology Solutions during the 3rd quarter worth about $201,834,000. Cibc World Markets Corp acquired a new position in shares of Cognizant Technology Solutions during the 4th quarter worth about $234,671,000. Finally, FIL Ltd increased its holdings in shares of Cognizant Technology Solutions by 46.6% in the 4th quarter. FIL Ltd now owns 6,680,508 shares of the information technology service provider’s stock valued at $554,482,000 after acquiring an additional 2,122,600 shares during the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Company Profile

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.