Cognizant Technology Solutions Corporation (CTSH) – What Are Researchers Saying About This Stock?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has earned a consensus recommendation of “Hold” from the twenty-four brokerages that are presently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, thirteen have issued a hold recommendation and ten have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $64.43.

A number of research firms recently weighed in on CTSH. Citigroup reissued a “neutral” rating and set a $60.00 price target (up from $45.00) on shares of Cognizant Technology Solutions in a research note on Thursday, July 30th. Daiwa Securities Group raised their price objective on shares of Cognizant Technology Solutions from $42.00 to $60.00 and gave the company a “neutral” rating in a research note on Friday, September 25th. Guggenheim reaffirmed a “buy” rating and set a $65.00 target price (down from $80.00) on shares of Cognizant Technology Solutions in a report on Monday, July 27th. JPMorgan Chase & Co. lowered their target price on shares of Cognizant Technology Solutions from $74.00 to $55.00 and set an “overweight” rating for the company in a report on Friday, July 24th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Cognizant Technology Solutions in a research report on Friday, August 7th.

Cognizant Technology Solutions Price Performance

Shares of CTSH stock opened at $59.20 on Friday. The stock has a 50-day moving average price of $59.80 and a 200 day moving average price of $54.37. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.11. The firm has a market cap of $26.67 billion, a price-to-earnings ratio of 12.73, a PEG ratio of 1.11 and a beta of 0.86. Cognizant Technology Solutions has a 12 month low of $37.08 and a 12 month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.01). The firm had revenue of $5.48 billion for the quarter, compared to the consensus estimate of $5.48 billion. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%. The business’s revenue for the quarter was up 4.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.31 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. Research analysts expect that Cognizant Technology Solutions will post 5.74 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

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

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Pzena Investment Management LLC lifted its stake in Cognizant Technology Solutions by 14.9% in the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock valued at $1,243,096,000 after buying an additional 2,633,683 shares during the period. Capital Research Global Investors grew its position in shares of Cognizant Technology Solutions by 2.2% during the 4th quarter. Capital Research Global Investors now owns 6,356,349 shares of the information technology service provider’s stock worth $527,577,000 after buying an additional 139,437 shares during the period. National Bank of Canada FI increased its stake in shares of Cognizant Technology Solutions by 0.5% in the 4th quarter. National Bank of Canada FI now owns 5,771,093 shares of the information technology service provider’s stock valued at $479,000,000 after acquiring an additional 30,811 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Cognizant Technology Solutions by 3.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,404,918 shares of the information technology service provider’s stock valued at $392,947,000 after acquiring an additional 222,819 shares during the last quarter. Finally, Amundi increased its stake in shares of Cognizant Technology Solutions by 9.2% in the 1st quarter. Amundi now owns 6,177,881 shares of the information technology service provider’s stock valued at $379,013,000 after acquiring an additional 520,532 shares during the last quarter. Institutional investors own 92.44% of the company’s stock.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation (NASDAQ: CTSH) is a global professional services and information technology company that helps businesses modernize their operations and technology infrastructure. Its services include IT consulting, systems integration, application development and modernization, cloud computing, data and analytics, artificial intelligence, cybersecurity, and digital engineering.

The company also provides business process services and industry-specific solutions for sectors such as financial services, healthcare, life sciences, manufacturing, retail, communications, and information technology.