Weekly Investment Analysts’ Ratings Updates for Cognizant Technology Solutions (CTSH)

Several brokerages have updated their recommendations and price targets on shares of Cognizant Technology Solutions (NASDAQ: CTSH) in the last few weeks:

  • 5/10/2019 – Cognizant Technology Solutions was downgraded by analysts at Argus from a “buy” rating to a “hold” rating.
  • 5/7/2019 – Cognizant Technology Solutions was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “strong sell” rating. According to Zacks, “Cognizant reported unimpressive first-quarter 2019 results. While revenues increased year over year, earnings declined. Sluggish growth from financial services segment due to weak spending by large banks negatively impacted the top line. Healthcare growth was muted due to the ongoing industry-wide consolidation. The company slashed 2019 guidance, expecting slower growth from both the segments for the rest of the year. Cognizant’s shares have underperformed the industry on a year-to-date basis. The company faces significant geographic, domain and customer-concentration risks. Further, stiff competition in the IT services market is a major concern.”
  • 5/7/2019 – Cognizant Technology Solutions had its price target lowered by analysts at UBS Group AG from $76.00 to $62.00. They now have a “neutral” rating on the stock.
  • 5/7/2019 – Cognizant Technology Solutions was downgraded by analysts at Daiwa Capital Markets from a “buy” rating to a “hold” rating.
  • 5/6/2019 – Cognizant Technology Solutions had its “underperform” rating reaffirmed by analysts at Bank of America Corp. They now have a $57.00 price target on the stock, down previously from $71.00.
  • 5/3/2019 – Cognizant Technology Solutions was downgraded by analysts at JPMorgan Chase & Co. from a “neutral” rating to an “underweight” rating. They now have a $65.00 price target on the stock, down previously from $83.00.
  • 5/3/2019 – Cognizant Technology Solutions was given a new $64.00 price target on by analysts at Morgan Stanley. They now have a “sell” rating on the stock.
  • 5/3/2019 – Cognizant Technology Solutions was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 5/3/2019 – Cognizant Technology Solutions had its “overweight” rating reaffirmed by analysts at Cantor Fitzgerald. They now have a $75.00 price target on the stock, down previously from $87.00.
  • 5/3/2019 – Cognizant Technology Solutions was downgraded by analysts at Wedbush from an “outperform” rating to a “neutral” rating. They now have a $70.00 price target on the stock, down previously from $80.00.
  • 5/3/2019 – Cognizant Technology Solutions was downgraded by analysts at Goldman Sachs Group Inc from a “buy” rating to a “neutral” rating. They now have a $64.00 price target on the stock, down previously from $84.00.
  • 5/3/2019 – Cognizant Technology Solutions had its “market perform” rating reaffirmed by analysts at CIBC.
  • 5/3/2019 – Cognizant Technology Solutions was downgraded by analysts at William Blair from an “outperform” rating to a “market perform” rating.
  • 5/3/2019 – Cognizant Technology Solutions was downgraded by analysts at Oppenheimer Holdings Inc. from an “outperform” rating to a “market perform” rating.
  • 5/3/2019 – Cognizant Technology Solutions was given a new $63.00 price target on by analysts at Wells Fargo & Co. They now have a “hold” rating on the stock.
  • 5/3/2019 – Cognizant Technology Solutions was downgraded by analysts at Nomura to a “hold” rating.
  • 5/3/2019 – Cognizant Technology Solutions was downgraded by analysts at Needham & Company LLC from a “buy” rating to a “hold” rating.
  • 4/29/2019 – Cognizant Technology Solutions was downgraded by analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating. They now have a $69.00 price target on the stock, down previously from $85.00.
  • 4/25/2019 – Cognizant Technology Solutions had its price target lowered by analysts at BMO Capital Markets from $88.00 to $86.00. They now have an “outperform” rating on the stock.
  • 4/25/2019 – Cognizant Technology Solutions was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Cognizant is benefiting from its significant exposure to the fast-growing verticals like financial services and healthcare. Domain expertise as well as ability to harness the ongoing digital transition is a key catalyst. Cognizant is also significantly gaining from accretive acquisitions and aggressive share repurchase. Cognizant plans to use 50% of global free cash flow toward share repurchase. The dividend is attractive for investors. Estimates have been steady lately ahead of the company’s Q1 earnings release. The company has positive record of earnings surprises in recent quarters. However, the company faces significant geographic, domain and customer concentration risks. Further, lackluster spending by large banks in the financial services sector and stiff competition in the IT services market remains a concern. Shares have underperformed the industry in the past year.”
  • 4/16/2019 – Cognizant Technology Solutions was downgraded by analysts at Wells Fargo & Co from an “outperform” rating to a “market perform” rating. They now have a $75.00 price target on the stock, down previously from $82.00.
  • 4/8/2019 – Cognizant Technology Solutions was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $83.00 price target on the stock. According to Zacks, “Cognizant is benefiting from its significant exposure to the fast-growing verticals like financial services and healthcare. Domain expertise as well as ability to harness the ongoing digital transition is a key catalyst. Cognizant is also significantly gaining from accretive acquisitions and aggressive share repurchase. The recent acquisition of Meritsoft strengthens SaaS portfolio and expands the company’s footprint among financial institutions. Cognizant plans to use 50% of global free cash flow toward share repurchase. The dividend is attractive for investors. However, the company faces significant geographic, domain and customer concentration risks. Further, lackluster spending by large banks in the financial services sector and stiff competition in the IT services market remains a concern. Shares have underperformed the industry in the past year.”
  • 3/22/2019 – Cognizant Technology Solutions was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Cognizant is benefiting from its significant exposure to the fast-growing verticals like financial services and healthcare. Domain expertise as well as ability to harness the ongoing digital transition is a key catalyst. Cognizant is also significantly gaining from accretive acquisitions and aggressive share repurchase. The recent acquisition of Meritsoft strengthens SaaS portfolio and expands the company’s footprint among financial institutions. Cognizant plans to use 50% of global free cash flow toward share repurchase. The dividend is attractive for investors. However, the company faces significant geographic, domain and customer concentration risks. Further, lackluster spending by large banks in the financial services sector and stiff competition in the IT services market remains a concern. Shares have underperformed the industry in the past year.”

CTSH traded up $0.74 on Friday, reaching $59.38. The company’s stock had a trading volume of 325,886 shares, compared to its average volume of 8,128,731. The company has a market capitalization of $32.98 billion, a P/E ratio of 14.77, a P/E/G ratio of 1.48 and a beta of 0.95. Cognizant Technology Solutions Corp has a 1 year low of $56.73 and a 1 year high of $83.35. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.90 and a current ratio of 2.90.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Thursday, May 2nd. The information technology service provider reported $0.91 EPS for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.12). Cognizant Technology Solutions had a return on equity of 21.50% and a net margin of 12.39%. The firm had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.16 billion. During the same period in the prior year, the business earned $0.94 EPS. The company’s quarterly revenue was up 5.1% on a year-over-year basis. As a group, equities research analysts forecast that Cognizant Technology Solutions Corp will post 3.91 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Wednesday, May 22nd will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.35%. The ex-dividend date of this dividend is Tuesday, May 21st. Cognizant Technology Solutions’s dividend payout ratio is presently 19.90%.

In other Cognizant Technology Solutions news, COO Srinivasan Veeraraghavachary sold 2,000 shares of the stock in a transaction that occurred on Tuesday, April 2nd. The stock was sold at an average price of $74.00, for a total transaction of $148,000.00. Following the transaction, the chief operating officer now owns 38,992 shares of the company’s stock, valued at approximately $2,885,408. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Allen Shaheen sold 396 shares of the stock in a transaction that occurred on Monday, April 1st. The stock was sold at an average price of $73.80, for a total value of $29,224.80. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 44,477 shares of company stock worth $3,201,495. 0.56% of the stock is currently owned by company insiders.

Several institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new stake in Cognizant Technology Solutions in the 4th quarter valued at approximately $366,248,000. Davis R M Inc. increased its position in Cognizant Technology Solutions by 7.2% in the 4th quarter. Davis R M Inc. now owns 343,102 shares of the information technology service provider’s stock valued at $21,780,000 after acquiring an additional 22,923 shares during the period. Signition LP acquired a new stake in Cognizant Technology Solutions in the 1st quarter valued at approximately $593,000. Alpha Windward LLC increased its position in Cognizant Technology Solutions by 13.9% in the 4th quarter. Alpha Windward LLC now owns 2,099 shares of the information technology service provider’s stock valued at $133,000 after acquiring an additional 256 shares during the period. Finally, Naples Global Advisors LLC increased its position in Cognizant Technology Solutions by 14.7% in the 4th quarter. Naples Global Advisors LLC now owns 11,950 shares of the information technology service provider’s stock valued at $774,000 after acquiring an additional 1,535 shares during the period. Institutional investors and hedge funds own 88.67% of the company’s stock.

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers analytics and artificial intelligence, digital engineering, intelligent process automation, interactive, and hybrid cloud services and solutions; and application development, systems integration, application testing and maintenance, infrastructure, and business process services.

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