Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives $64.26 Consensus Target Price from Brokerages

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has been assigned an average rating of “Hold” from the twenty-four research firms that are covering the stock, MarketBeat reports. Fourteen research analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $64.2609.

Several brokerages have issued reports on CTSH. Berenberg Bank set a $59.00 target price on Cognizant Technology Solutions and gave the company a “hold” rating in a research note on Wednesday, June 17th. Daiwa Securities Group decreased their price objective on Cognizant Technology Solutions from $65.00 to $42.00 and set a “neutral” rating for the company in a report on Wednesday, June 24th. Wedbush upgraded Cognizant Technology Solutions from a “neutral” rating to an “outperform” rating and boosted their price objective for the company from $56.00 to $70.00 in a research note on Monday, June 8th. BMO Capital Markets dropped their price objective on shares of Cognizant Technology Solutions from $83.00 to $63.00 in a report on Thursday, April 30th. Finally, Nomura cut their target price on shares of Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating for the company in a research report on Wednesday, July 1st.

Cognizant Technology Solutions Stock Down 0.4%

Cognizant Technology Solutions stock opened at $43.01 on Tuesday. The firm has a 50 day moving average price of $47.17 and a 200-day moving average price of $59.77. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions has a twelve month low of $37.08 and a twelve month high of $87.03. The company has a market capitalization of $20.38 billion, a P/E ratio of 9.35, a P/E/G ratio of 0.94 and a beta of 0.87.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The business had revenue of $5.41 billion for the quarter, compared to the consensus estimate of $5.41 billion. During the same quarter in the prior year, the business earned $1.23 earnings per share. Cognizant Technology Solutions’s revenue for the quarter was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, equities analysts predict that Cognizant Technology Solutions will post 5.7 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio is presently 28.70%.

Cognizant Technology Solutions declared that its board has approved a stock buyback program on Monday, May 18th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the information technology service provider to purchase up to 9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Norges Bank bought a new position in shares of Cognizant Technology Solutions in the fourth quarter worth $690,959,000. GQG Partners LLC purchased a new position in shares of Cognizant Technology Solutions in the fourth quarter valued at $673,651,000. Assenagon Asset Management S.A. raised its stake in shares of Cognizant Technology Solutions by 925.5% during the 2nd quarter. Assenagon Asset Management S.A. now owns 3,652,358 shares of the information technology service provider’s stock valued at $141,456,000 after purchasing an additional 3,296,205 shares during the period. Cibc World Markets Corp purchased a new stake in Cognizant Technology Solutions during the 4th quarter worth about $234,671,000. Finally, Pzena Investment Management LLC lifted its holdings in Cognizant Technology Solutions by 14.9% during the 1st quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock worth $1,243,096,000 after purchasing an additional 2,633,683 shares in the last quarter. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

About Cognizant Technology Solutions

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.