Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives $90.17 Consensus Target Price from Analysts

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) have earned an average recommendation of “Hold” from the twenty-two research firms that are presently covering the company, MarketBeat Ratings reports. Twelve analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $90.1667.

Several equities analysts have commented on CTSH shares. UBS Group restated a “neutral” rating and issued a $82.00 price target (up from $78.00) on shares of Cognizant Technology Solutions in a research note on Monday, December 8th. Citigroup reiterated a “neutral” rating and issued a $86.00 target price (up from $75.00) on shares of Cognizant Technology Solutions in a report on Thursday, January 22nd. Royal Bank Of Canada upped their price target on Cognizant Technology Solutions from $82.00 to $88.00 and gave the stock a “sector perform” rating in a report on Thursday, February 5th. Guggenheim reiterated a “buy” rating and issued a $100.00 price objective (up from $95.00) on shares of Cognizant Technology Solutions in a research note on Wednesday, January 28th. Finally, Berenberg Bank set a $107.00 price objective on Cognizant Technology Solutions and gave the stock a “buy” rating in a research report on Thursday, January 22nd.

Insider Activity

In other Cognizant Technology Solutions news, CEO Ravi Kumar Singisetti sold 2,950 shares of Cognizant Technology Solutions stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $85.06, for a total transaction of $250,927.00. Following the completion of the sale, the chief executive officer directly owned 75,209 shares of the company’s stock, valued at $6,397,277.54. The trade was a 3.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Surya Gummadi sold 1,728 shares of the company’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $83.06, for a total value of $143,527.68. Following the transaction, the insider directly owned 25,641 shares of the company’s stock, valued at approximately $2,129,741.46. This represents a 6.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 29,434 shares of company stock valued at $2,460,809 over the last quarter. Company insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Checchi Capital Advisers LLC lifted its position in shares of Cognizant Technology Solutions by 3.4% during the 4th quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider’s stock worth $320,000 after buying an additional 127 shares during the last quarter. Unison Advisors LLC grew its position in shares of Cognizant Technology Solutions by 0.5% in the 4th quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider’s stock valued at $2,498,000 after buying an additional 138 shares during the last quarter. TD Waterhouse Canada Inc. raised its stake in Cognizant Technology Solutions by 7.2% during the 4th quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider’s stock worth $177,000 after acquiring an additional 143 shares in the last quarter. Security National Bank of SO Dak lifted its position in Cognizant Technology Solutions by 0.6% in the third quarter. Security National Bank of SO Dak now owns 24,785 shares of the information technology service provider’s stock valued at $1,662,000 after acquiring an additional 150 shares during the last quarter. Finally, NewSquare Capital LLC boosted its stake in Cognizant Technology Solutions by 71.8% in the second quarter. NewSquare Capital LLC now owns 366 shares of the information technology service provider’s stock valued at $29,000 after acquiring an additional 153 shares in the last quarter. 92.44% of the stock is owned by institutional investors and hedge funds.

Cognizant Technology Solutions Stock Performance

NASDAQ CTSH opened at $64.43 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.14 and a quick ratio of 2.14. The company has a market cap of $30.81 billion, a P/E ratio of 14.16, a P/E/G ratio of 1.41 and a beta of 0.95. The stock has a 50-day moving average of $78.21 and a two-hundred day moving average of $74.32. Cognizant Technology Solutions has a 1-year low of $60.03 and a 1-year high of $87.03.

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

Cognizant Technology Solutions Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Wednesday, February 18th were given a $0.33 dividend. The ex-dividend date of this dividend was Wednesday, February 18th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. Cognizant Technology Solutions’s payout ratio is currently 29.01%.

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.