Zacks Investment Research cut shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a buy rating to a hold rating in a research note issued to investors on Wednesday.
According to Zacks, “Cognizant shares have outperformed the industry in the past one year. Growth can be attributed to the company's significant exposure to the fast-growing verticals like Financial Services and Healthcare. Higher demand from payer and top-tier consulting clients in the healthcare segment will help to sustain the growth momentum. The company’s ability to harness the ongoing digital transition is a tailwind. The company is also significantly benefiting from accretive acquisitions. The extensive share repurchase program is another positive. Cognizant has also gained deep industry expertise and knowledge of the domains through partnerships with top firms like Microsoft and SAP. However, the company faces significant geographic, domain and customer concentration risks which can negatively impact its business. Besides, stiff competition in the IT services market remains a concern.”
A number of other research analysts also recently commented on the company. Barclays boosted their price target on Cognizant Technology Solutions from $80.00 to $90.00 and gave the company an overweight rating in a research note on Monday, October 30th. They noted that the move was a valuation call. Royal Bank of Canada reaffirmed a buy rating and issued a $77.00 price target on shares of Cognizant Technology Solutions in a research note on Sunday, October 8th. Robert W. Baird boosted their price target on Cognizant Technology Solutions from $80.00 to $90.00 and gave the company an outperform rating in a research note on Thursday, October 19th. Pivotal Research began coverage on Cognizant Technology Solutions in a research note on Wednesday, November 8th. They issued a buy rating and a $93.00 price target for the company. Finally, BidaskClub downgraded Cognizant Technology Solutions from a buy rating to a hold rating in a research note on Tuesday, December 5th. One analyst has rated the stock with a sell rating, five have issued a hold rating, twenty have issued a buy rating and two have given a strong buy rating to the stock. Cognizant Technology Solutions currently has a consensus rating of Buy and a consensus target price of $81.83.
Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings results on Wednesday, November 1st. The information technology service provider reported $0.98 EPS for the quarter, beating the Zacks’ consensus estimate of $0.85 by $0.13. The business had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.77 billion. Cognizant Technology Solutions had a return on equity of 18.94% and a net margin of 13.42%. Cognizant Technology Solutions’s revenue for the quarter was up 9.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.86 earnings per share. equities analysts anticipate that Cognizant Technology Solutions will post 3.35 EPS for the current year.
In other news, insider Gajakarnan Vibushanan Kandiah sold 3,000 shares of the company’s stock in a transaction that occurred on Friday, December 15th. The stock was sold at an average price of $72.18, for a total transaction of $216,540.00. Following the transaction, the insider now directly owns 7,724 shares of the company’s stock, valued at $557,518.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Venkat Krishnaswamy sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, November 6th. The stock was sold at an average price of $75.00, for a total value of $300,000.00. Following the transaction, the insider now directly owns 3,919 shares in the company, valued at $293,925. The disclosure for this sale can be found here. Insiders have sold a total of 569,476 shares of company stock worth $41,071,682 over the last 90 days. Company insiders own 1.08% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Linscomb & Williams Inc. purchased a new stake in Cognizant Technology Solutions in the 3rd quarter valued at $278,000. Robeco Institutional Asset Management B.V. increased its position in shares of Cognizant Technology Solutions by 45.7% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 143,385 shares of the information technology service provider’s stock valued at $10,401,000 after purchasing an additional 44,982 shares during the last quarter. Rothschild Asset Management Inc. purchased a new stake in shares of Cognizant Technology Solutions during the 3rd quarter valued at $12,538,000. Oak Ridge Investments LLC increased its position in shares of Cognizant Technology Solutions by 7.1% during the 2nd quarter. Oak Ridge Investments LLC now owns 169,645 shares of the information technology service provider’s stock valued at $11,264,000 after purchasing an additional 11,316 shares during the last quarter. Finally, Dalton Investments LLC increased its position in shares of Cognizant Technology Solutions by 7.3% during the 2nd quarter. Dalton Investments LLC now owns 320,422 shares of the information technology service provider’s stock valued at $21,276,000 after purchasing an additional 21,800 shares during the last quarter. 85.98% of the stock is owned by institutional investors and hedge funds.
About Cognizant Technology Solutions
Cognizant Technology Solutions Corporation is a professional services company. The Company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. The Financial Services segment includes customers providing banking/transaction processing, capital markets and insurance services.
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