Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 52-Week Low – Here’s Why

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s share price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $58.34 and last traded at $58.7250, with a volume of 709485 shares. The stock had previously closed at $61.00.

Analyst Ratings Changes

CTSH has been the topic of a number of analyst reports. Guggenheim reiterated a “buy” rating and set a $100.00 price objective (up from $95.00) on shares of Cognizant Technology Solutions in a research note on Wednesday, January 28th. Argus raised Cognizant Technology Solutions to a “hold” rating in a report on Tuesday, February 10th. Citigroup decreased their target price on Cognizant Technology Solutions from $86.00 to $68.00 and set a “neutral” rating on the stock in a report on Tuesday. UBS Group set a $71.00 target price on Cognizant Technology Solutions in a report on Friday, March 13th. Finally, Weiss Ratings lowered Cognizant Technology Solutions from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, March 19th. Nine research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat, Cognizant Technology Solutions currently has an average rating of “Hold” and a consensus price target of $86.37.

Cognizant Technology Solutions Price Performance

The company has a 50 day moving average of $65.71 and a 200-day moving average of $72.68. The firm has a market capitalization of $28.01 billion, a P/E ratio of 12.87, a P/E/G ratio of 1.36 and a beta of 0.98. The company has a current ratio of 2.14, a quick ratio of 2.14 and a debt-to-equity ratio of 0.04.

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

Cognizant Technology Solutions Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Investors of record on Wednesday, February 18th were paid a $0.33 dividend. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. The ex-dividend date was Wednesday, February 18th. This represents a $1.32 annualized dividend and a yield of 2.3%. Cognizant Technology Solutions’s dividend payout ratio is presently 29.01%.

Insider Transactions at Cognizant Technology Solutions

In related news, insider Surya Gummadi sold 1,728 shares of the business’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total value of $143,527.68. Following the completion of the sale, the insider directly owned 25,641 shares in the company, valued at $2,129,741.46. The trade was a 6.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cognizant Technology Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp grew its holdings in Cognizant Technology Solutions by 0.6% during the 2nd quarter. State Street Corp now owns 25,381,572 shares of the information technology service provider’s stock worth $1,980,524,000 after acquiring an additional 157,427 shares during the period. AustralianSuper Pty Ltd acquired a new stake in Cognizant Technology Solutions during the 3rd quarter worth about $4,422,000. Thrivent Financial for Lutherans grew its holdings in Cognizant Technology Solutions by 60.9% during the 2nd quarter. Thrivent Financial for Lutherans now owns 39,474 shares of the information technology service provider’s stock worth $3,079,000 after acquiring an additional 14,946 shares during the period. Alps Advisors Inc. grew its holdings in Cognizant Technology Solutions by 16.5% during the 3rd quarter. Alps Advisors Inc. now owns 306,078 shares of the information technology service provider’s stock worth $20,529,000 after acquiring an additional 43,252 shares during the period. Finally, Arjuna Capital grew its holdings in Cognizant Technology Solutions by 62.6% during the 3rd quarter. Arjuna Capital now owns 24,622 shares of the information technology service provider’s stock worth $1,651,000 after acquiring an additional 9,482 shares during the period. 92.44% of the stock is owned by institutional investors and hedge funds.

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.