Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 12-Month Low – Here’s What Happened

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $65.00 and last traded at $66.3020, with a volume of 7010366 shares changing hands. The stock had previously closed at $70.91.

Wall Street Analysts Forecast Growth

CTSH has been the subject of a number of recent research reports. Weiss Ratings upgraded Cognizant Technology Solutions from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, February 6th. Royal Bank Of Canada lifted their price target on shares of Cognizant Technology Solutions from $82.00 to $88.00 and gave the stock a “sector perform” rating in a research note on Thursday, February 5th. Citigroup reiterated a “neutral” rating and issued a $86.00 price objective (up previously from $75.00) on shares of Cognizant Technology Solutions in a report on Thursday, January 22nd. BMO Capital Markets set a $83.00 target price on Cognizant Technology Solutions in a research note on Thursday. Finally, Berenberg Bank set a $107.00 target price on Cognizant Technology Solutions and gave the stock a “buy” rating in a research report on Thursday, January 22nd. Ten investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $90.17.

Cognizant Technology Solutions Price Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.36 and a current ratio of 2.34. The company’s fifty day moving average price is $82.61 and its 200 day moving average price is $74.93. The firm has a market capitalization of $31.77 billion, a price-to-earnings ratio of 14.47, a price-to-earnings-growth ratio of 1.62 and a beta of 0.95.

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

Cognizant Technology Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 26th. Investors of record on Wednesday, February 18th will be paid a dividend of $0.33 per share. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Wednesday, February 18th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is presently 29.01%.

Insider Activity at Cognizant Technology Solutions

In related news, Director Michael Patsalos-Fox sold 7,000 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $83.52, for a total transaction of $584,640.00. Following the sale, the director owned 47,729 shares of the company’s stock, valued at $3,986,326.08. The trade was a 12.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Ravi Kumar Singisetti sold 3,125 shares of the firm’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $80.01, for a total value of $250,031.25. Following the transaction, the chief executive officer directly owned 75,454 shares of the company’s stock, valued at $6,037,074.54. This represents a 3.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 29,434 shares of company stock worth $2,460,809 over the last ninety days. Insiders own 0.32% of the company’s stock.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of CTSH. Norges Bank purchased a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at $690,959,000. CIBC Bancorp USA Inc. purchased a new position in Cognizant Technology Solutions during the third quarter valued at approximately $201,834,000. Cibc World Markets Corp acquired a new position in Cognizant Technology Solutions in the 4th quarter valued at approximately $234,671,000. Voloridge Investment Management LLC lifted its position in Cognizant Technology Solutions by 801.4% in the 3rd quarter. Voloridge Investment Management LLC now owns 2,104,276 shares of the information technology service provider’s stock worth $141,134,000 after buying an additional 1,870,834 shares in the last quarter. Finally, Allianz Asset Management GmbH boosted its position in Cognizant Technology Solutions by 152.7% during the second quarter. Allianz Asset Management GmbH now owns 2,708,349 shares of the information technology service provider’s stock valued at $211,332,000 after purchasing an additional 1,636,636 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.