Cognizant Technology Solutions (NASDAQ:CTSH) Trading Up 6.7% – Still a Buy?

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) were up 6.7% during mid-day trading on Monday . The stock traded as high as $50.17 and last traded at $50.2920. Approximately 4,791,475 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 6,571,276 shares. The stock had previously closed at $47.13.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on CTSH shares. BMO Capital Markets dropped their target price on shares of Cognizant Technology Solutions from $83.00 to $63.00 in a report on Thursday, April 30th. Nomura upped their price objective on shares of Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Wells Fargo & Company dropped their price objective on shares of Cognizant Technology Solutions from $98.00 to $83.00 and set an “overweight” rating on the stock in a report on Thursday, April 30th. Deutsche Bank Aktiengesellschaft upgraded shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating and set a $100.00 price objective on the stock in a report on Monday, January 26th. Finally, Berenberg Bank dropped their price objective on shares of Cognizant Technology Solutions from $107.00 to $81.00 and set a “buy” rating on the stock in a report on Monday, May 11th. Ten equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat, Cognizant Technology Solutions has a consensus rating of “Hold” and an average price target of $73.00.

Cognizant Technology Solutions Stock Up 1.1%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. The company has a market cap of $24.36 billion, a price-to-earnings ratio of 11.18, a price-to-earnings-growth ratio of 1.08 and a beta of 0.81. The stock’s fifty day moving average is $57.72 and its two-hundred day moving average is $70.24.

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 for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The company had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. During the same quarter in the prior year, the business posted $1.23 EPS. The firm’s revenue was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Sell-side analysts predict that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Monday, May 18th will be issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio is currently 28.70%.

Cognizant Technology Solutions announced that its board has authorized a share buyback 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 buy up to 9% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors have recently added to or reduced their stakes in CTSH. Brighton Jones LLC bought a new stake in Cognizant Technology Solutions in the 4th quarter worth about $214,000. Geneos Wealth Management Inc. grew its position in shares of Cognizant Technology Solutions by 118.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider’s stock valued at $44,000 after acquiring an additional 309 shares during the period. Acadian Asset Management LLC bought a new position in shares of Cognizant Technology Solutions during the 1st quarter valued at approximately $142,000. Cresset Asset Management LLC grew its position in shares of Cognizant Technology Solutions by 11.4% during the 2nd quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider’s stock valued at $715,000 after acquiring an additional 935 shares during the period. Finally, Jump Financial LLC grew its position in shares of Cognizant Technology Solutions by 231.4% during the 2nd quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider’s stock valued at $2,315,000 after acquiring an additional 20,716 shares during the period. 92.44% of the stock is owned by 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.