Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives $63.00 Consensus Target Price from Analysts

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has received a consensus recommendation of “Hold” from the twenty-four ratings firms that are currently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating and ten have issued a buy rating on the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $63.00.

A number of analysts have recently issued reports on the company. Wells Fargo & Company lifted their price target on Cognizant Technology Solutions from $61.00 to $67.00 and gave the stock an “overweight” rating in a research note on Thursday, July 30th. Daiwa Securities Group decreased their price objective on Cognizant Technology Solutions from $65.00 to $42.00 and set a “neutral” rating on the stock in a report on Wednesday, June 24th. JPMorgan Chase & Co. lowered their target price on shares of Cognizant Technology Solutions from $74.00 to $55.00 and set an “overweight” rating on the stock in a research note on Friday, July 24th. TD Cowen upped their target price on shares of Cognizant Technology Solutions from $47.00 to $54.00 and gave the stock a “hold” rating in a report on Thursday, July 30th. Finally, Robert W. Baird set a $68.00 target price on shares of Cognizant Technology Solutions in a research report on Thursday, July 30th.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Physician Wealth Advisors Inc. grew its position in shares of Cognizant Technology Solutions by 165.1% in the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock valued at $28,000 after purchasing an additional 213 shares in the last quarter. Prosperity Bancshares Inc purchased a new position in Cognizant Technology Solutions during the fourth quarter worth approximately $29,000. Towne Trust Company N.A boosted its stake in Cognizant Technology Solutions by 85.0% during the fourth quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider’s stock worth $31,000 after buying an additional 170 shares during the last quarter. JPL Wealth Management LLC acquired a new position in Cognizant Technology Solutions during the third quarter worth $25,000. Finally, Reflection Asset Management purchased a new stake in Cognizant Technology Solutions in the 4th quarter valued at $40,000. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Stock Up 5.5%

CTSH opened at $60.93 on Friday. The company has a market cap of $27.45 billion, a PE ratio of 13.10, a price-to-earnings-growth ratio of 1.16 and a beta of 0.82. Cognizant Technology Solutions has a twelve month low of $37.08 and a twelve month high of $87.03. The company has a 50-day moving average price of $48.27 and a 200 day moving average price of $55.93. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.11.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.38 by ($0.01). Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%.The firm had revenue of $5.48 billion during the quarter, compared to analyst estimates of $5.48 billion. During the same quarter in the previous year, the firm posted $1.31 earnings per share. The company’s quarterly revenue was up 4.5% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. Sell-side analysts expect that Cognizant Technology Solutions will post 5.71 earnings per share for the current fiscal year.

Cognizant Technology Solutions announced that its Board of Directors has initiated a stock repurchase plan on Monday, May 18th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the information technology service provider to buy up to 9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Cognizant Technology Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Tuesday, August 18th will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, August 18th. Cognizant Technology Solutions’s dividend payout ratio is currently 28.39%.

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.