Cognizant Technology Solutions (NASDAQ:CTSH) Board of Directors Declares Stock Buyback Program

Cognizant Technology Solutions (NASDAQ:CTSHGet Free Report) declared that its Board of Directors has authorized a stock repurchase plan on Monday, May 18th, RTT News reports. The company plans to buyback $2.00 billion in shares. This buyback authorization authorizes the information technology service provider to purchase up to 9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its shares are undervalued.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ CTSH traded up $4.27 during midday trading on Monday, hitting $51.40. The stock had a trading volume of 15,303,332 shares, compared to its average volume of 7,352,221. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04. The stock has a 50 day simple moving average of $58.03 and a 200-day simple moving average of $70.39. The company has a market capitalization of $24.36 billion, a PE ratio of 11.17, a P/E/G ratio of 0.99 and a beta of 0.81. Cognizant Technology Solutions has a 1 year low of $45.48 and a 1 year high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSHGet Free Report) 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 firm had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same period in the prior year, the company earned $1.23 EPS. The firm’s revenue was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, sell-side analysts expect that Cognizant Technology Solutions will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Monday, May 18th will be given a dividend of $0.33 per share. The ex-dividend date is Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a yield of 2.6%. Cognizant Technology Solutions’s payout ratio is presently 28.70%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. Royal Bank Of Canada upped their price objective on Cognizant Technology Solutions from $82.00 to $88.00 and gave the stock a “sector perform” rating in a research report on Thursday, February 5th. Robert W. Baird set a $72.00 target price on shares of Cognizant Technology Solutions and gave the company a “neutral” rating in a research note on Friday, April 10th. Argus upgraded Cognizant Technology Solutions to a “hold” rating in a research note on Tuesday, February 10th. Nomura lifted their price target on shares of Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Finally, Evercore reduced their price objective on shares of Cognizant Technology Solutions from $100.00 to $70.00 in a research report on Thursday, April 30th. Ten investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $73.00.

Check Out Our Latest Research Report on CTSH

Cognizant Technology Solutions Company Profile

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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.

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