Cognizant Technology Solutions (NASDAQ:CTSH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.

According to Zacks, “Cognizant’s growth can be attributed to its 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 benefiting from accretive acquisitions and share repurchase program. Cognizant has also gained deep industry expertise and knowledge of the domains through partnerships with top firms like Microsoft and SAP. Estimates have been stable lately ahead of the company’s Q4 earnings release. The company has mixed record of earnings surprises in recent quarters. 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 equities research analysts have also recently commented on the stock. Barclays raised their price objective on shares of Cognizant Technology Solutions from $80.00 to $90.00 and gave the stock 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 set a $77.00 price objective on shares of Cognizant Technology Solutions in a research note on Sunday, October 8th. Robert W. Baird raised their price objective on shares of Cognizant Technology Solutions from $80.00 to $90.00 and gave the stock an “outperform” rating in a research note on Thursday, October 19th. Pivotal Research started coverage on shares of Cognizant Technology Solutions in a research note on Wednesday, November 8th. They set a “buy” rating and a $93.00 price objective on the stock. Finally, BidaskClub cut shares of 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 given a hold rating, twenty have assigned a buy rating and two have given a strong buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $81.75.

Shares of Cognizant Technology Solutions (NASDAQ:CTSH) traded up $0.47 during midday trading on Friday, hitting $74.49. 1,368,261 shares of the stock were exchanged, compared to its average volume of 3,441,712. The firm has a market cap of $44,020.00, a PE ratio of 23.06, a price-to-earnings-growth ratio of 1.40 and a beta of 1.08. Cognizant Technology Solutions has a twelve month low of $51.52 and a twelve month high of $76.51. The company has a quick ratio of 3.29, a current ratio of 3.29 and a debt-to-equity ratio of 0.07.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Wednesday, November 1st. The information technology service provider reported $0.98 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.13. The business had revenue of $3.77 billion for the quarter, compared to analysts’ expectations of $3.77 billion. Cognizant Technology Solutions had a net margin of 13.42% and a return on equity of 18.94%. The business’s revenue was up 9.1% on a year-over-year basis. During the same quarter last year, the company earned $0.86 EPS. equities analysts forecast that Cognizant Technology Solutions will post 3.35 EPS for the current year.

In other Cognizant Technology Solutions news, insider Venkat Krishnaswamy sold 4,000 shares of the firm’s stock in a transaction 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 owns 3,919 shares in the company, valued at approximately $293,925. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Malcolm Frank sold 9,462 shares of the firm’s stock in a transaction on Wednesday, December 6th. The shares were sold at an average price of $70.61, for a total value of $668,111.82. Following the completion of the transaction, the vice president now owns 15,533 shares in the company, valued at approximately $1,096,785.13. The disclosure for this sale can be found here. Insiders have sold a total of 567,286 shares of company stock worth $40,909,609 in the last quarter. Insiders own 1.08% of the company’s stock.

A number of hedge funds have recently made changes to their positions in CTSH. FMR LLC lifted its holdings in Cognizant Technology Solutions by 81.6% in the 2nd quarter. FMR LLC now owns 25,065,752 shares of the information technology service provider’s stock valued at $1,664,366,000 after purchasing an additional 11,262,360 shares in the last quarter. Harding Loevner LP lifted its holdings in Cognizant Technology Solutions by 2,085,162.4% in the 3rd quarter. Harding Loevner LP now owns 3,544,946 shares of the information technology service provider’s stock valued at $142,254,000 after purchasing an additional 3,544,776 shares in the last quarter. Comgest Global Investors S.A.S. lifted its holdings in Cognizant Technology Solutions by 24.5% in the 3rd quarter. Comgest Global Investors S.A.S. now owns 7,416,617 shares of the information technology service provider’s stock valued at $538,001,000 after purchasing an additional 1,461,800 shares in the last quarter. Edgewood Management LLC increased its stake in shares of Cognizant Technology Solutions by 9.3% in the 3rd quarter. Edgewood Management LLC now owns 16,915,676 shares of the information technology service provider’s stock worth $1,227,063,000 after acquiring an additional 1,443,368 shares during the last quarter. Finally, BT Investment Management Ltd acquired a new stake in shares of Cognizant Technology Solutions in the 2nd quarter worth $83,134,000. Institutional investors own 85.98% of the company’s stock.

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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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