Cognizant Technology Solutions (NASDAQ:CTSH) Price Target Cut to $42.00 by Analysts at Daiwa Securities Group

Cognizant Technology Solutions (NASDAQ:CTSH) had its price objective reduced by equities researchers at Daiwa Securities Group from $65.00 to $42.00 in a report issued on Wednesday,MarketScreener reports. The brokerage currently has a “neutral” rating on the information technology service provider’s stock. Daiwa Securities Group’s price target would indicate a potential downside of 0.58% from the company’s previous close.

Several other equities research analysts also recently issued reports on the stock. JPMorgan Chase & Co. cut their price objective on shares of Cognizant Technology Solutions from $92.00 to $74.00 and set an “overweight” rating for the company in a research report on Tuesday, April 28th. Jefferies Financial Group dropped their price target on Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating for the company in a report on Monday, May 4th. UBS Group reduced their price target on Cognizant Technology Solutions from $60.00 to $55.00 in a research note on Monday, May 11th. Berenberg Bank set a $59.00 price target on shares of Cognizant Technology Solutions and gave the company a “hold” rating in a research note on Wednesday, June 17th. Finally, BMO Capital Markets lowered their price target on shares of Cognizant Technology Solutions from $83.00 to $63.00 in a research report on Thursday, April 30th. Ten equities research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $70.35.

Cognizant Technology Solutions Stock Performance

Shares of NASDAQ:CTSH traded up $1.29 on Wednesday, hitting $42.24. The company had a trading volume of 1,994,821 shares, compared to its average volume of 7,833,845. Cognizant Technology Solutions has a 1-year low of $40.77 and a 1-year high of $87.03. The stock has a market cap of $20.02 billion, a price-to-earnings ratio of 9.14, a P/E/G ratio of 0.88 and a beta of 0.81. The stock has a 50 day moving average price of $52.66 and a 200 day moving average price of $66.15. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 net margin of 10.41% and a return on equity of 17.50%. Cognizant Technology Solutions’s quarterly revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the company posted $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Analysts expect that Cognizant Technology Solutions will post 5.7 EPS for the current year.

Cognizant Technology Solutions announced that its Board of Directors has authorized a stock repurchase program on Monday, May 18th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology service provider to reacquire up to 9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in Cognizant Technology Solutions in the fourth quarter worth $690,959,000. GQG Partners LLC purchased a new stake in shares of Cognizant Technology Solutions during the 4th quarter valued at $673,651,000. CIBC Bancorp USA Inc. bought a new stake in shares of Cognizant Technology Solutions during the 3rd quarter worth $201,834,000. Cibc World Markets Corp purchased a new position in shares of Cognizant Technology Solutions in the 4th quarter worth about $234,671,000. Finally, Pzena Investment Management LLC boosted its holdings in shares of Cognizant Technology Solutions by 14.9% in the 1st 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 buying an additional 2,633,683 shares during the last quarter. Institutional investors 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.