Cognizant Technology Solutions Corp. (CTSH) Downgraded to Sell at Zacks Investment Research
Cognizant Technology Solutions Corp. (NASDAQ:CTSH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
According to Zacks, “Cognizant plans to broaden its presence in the digitization market as evident from its plans to set up a new digital works collaboration center in Australia. Apart from this, the company is likely to benefit from strong demand for high quality, lower cost technology services. Also, acquisitions will continue to play an important role in boosting revenues. However, its business has been affected because of persisting macroeconomic headwinds and sluggish spending levels in its healthcare and financial sector, which are its biggest markets. The company had even lowered its revenue outlook for 2016 given these factors. Intense competition in the IT service industry, rising wages and customer concentration are other challenges.”
Other equities research analysts also recently issued reports about the company. Barclays PLC reaffirmed a “buy” rating on shares of Cognizant Technology Solutions Corp. in a report on Saturday, July 9th. Needham & Company LLC reduced their target price on Cognizant Technology Solutions Corp. from $70.00 to $68.00 and set a “buy” rating for the company in a report on Monday, August 8th. Cantor Fitzgerald set a $68.00 target price on Cognizant Technology Solutions Corp. and gave the company a “buy” rating in a report on Friday, August 5th. Nomura downgraded Cognizant Technology Solutions Corp. from a “buy” rating to a “neutral” rating and reduced their target price for the company from $65.00 to $62.00 in a report on Monday, August 8th. Finally, Citigroup Inc. reduced their target price on Cognizant Technology Solutions Corp. from $71.00 to $68.00 and set a “buy” rating for the company in a report on Wednesday, July 20th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the company. The stock has an average rating of “Buy” and a consensus target price of $65.98.
Cognizant Technology Solutions Corp. (NASDAQ:CTSH) traded up 1.70% during trading on Wednesday, hitting $50.94. The stock had a trading volume of 3,392,690 shares. The company has a 50 day moving average of $55.51 and a 200-day moving average of $58.65. The company has a market cap of $30.92 billion, a P/E ratio of 20.54 and a beta of 1.43. Cognizant Technology Solutions Corp. has a 12-month low of $45.44 and a 12-month high of $69.80.
Cognizant Technology Solutions Corp. (NASDAQ:CTSH) last announced its earnings results on Friday, August 5th. The information technology service provider reported $0.87 EPS for the quarter, beating the consensus estimate of $0.82 by $0.05. Cognizant Technology Solutions Corp. had a return on equity of 19.31% and a net margin of 11.65%. The business earned $3.37 billion during the quarter, compared to the consensus estimate of $3.37 billion. During the same period in the prior year, the business posted $0.79 earnings per share. Cognizant Technology Solutions Corp.’s revenue was up 9.2% compared to the same quarter last year. On average, equities analysts predict that Cognizant Technology Solutions Corp. will post $3.38 EPS for the current year.
In related news, VP Malcolm Frank sold 1,248 shares of the firm’s stock in a transaction on Tuesday, September 6th. The stock was sold at an average price of $58.50, for a total transaction of $73,008.00. Following the completion of the sale, the vice president now directly owns 3,945 shares of the company’s stock, valued at approximately $230,782.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Francisco Dsouza sold 200,000 shares of the firm’s stock in a transaction on Friday, July 29th. The shares were sold at an average price of $57.69, for a total value of $11,538,000.00. Following the sale, the chief executive officer now directly owns 422,602 shares of the company’s stock, valued at $24,379,909.38. The disclosure for this sale can be found here. 0.81% of the stock is owned by insiders.
A number of large investors have recently added to or reduced their stakes in the stock. Motley Fool Wealth Management LLC boosted its stake in Cognizant Technology Solutions Corp. by 2.7% in the first quarter. Motley Fool Wealth Management LLC now owns 115,900 shares of the information technology service provider’s stock worth $7,267,000 after buying an additional 3,007 shares in the last quarter. Associated Banc Corp boosted its stake in Cognizant Technology Solutions Corp. by 226.5% in the first quarter. Associated Banc Corp now owns 101,985 shares of the information technology service provider’s stock worth $6,394,000 after buying an additional 70,746 shares in the last quarter. Aviva PLC boosted its stake in Cognizant Technology Solutions Corp. by 2.4% in the first quarter. Aviva PLC now owns 341,467 shares of the information technology service provider’s stock worth $21,410,000 after buying an additional 7,978 shares in the last quarter. Investec Asset Management North America Inc. acquired a new stake in Cognizant Technology Solutions Corp. during the first quarter worth $3,902,000. Finally, Investec Asset Management LTD acquired a new stake in Cognizant Technology Solutions Corp. during the first quarter worth $45,555,000. 87.00% of the stock is owned by hedge funds and other institutional investors.
About Cognizant Technology Solutions Corp.
Cognizant Technology Solutions Corporation is a provider of information technology (IT), consulting and business process services. The Company operates through four segments: Financial Services, which includes customers providing banking/transaction processing, capital markets and insurance services; Healthcare, which includes healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech and medical device companies; Manufacturing, Retail and Logistics, which includes manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services, and Other, which includes communications, manufacturing/retail/logistics, and high technology.
Receive News & Stock Ratings for Cognizant Technology Solutions Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cognizant Technology Solutions Corp. and related stocks with our FREE daily email newsletter.