Cognizant Technology Solutions (NASDAQ:CTSH) Shares Gap Down After Analyst Downgrade

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSHGet Free Report) gapped down prior to trading on Tuesday after Citigroup lowered their price target on the stock from $55.00 to $45.00. The stock had previously closed at $44.16, but opened at $41.71. Citigroup currently has a neutral rating on the stock. Cognizant Technology Solutions shares last traded at $43.0990, with a volume of 979,085 shares.

A number of other research analysts also recently weighed in on the stock. Nomura cut their price target on shares of Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating on the stock in a report on Wednesday, July 1st. Mizuho cut their target price on Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a report on Wednesday, May 6th. Wells Fargo & Company decreased their price target on Cognizant Technology Solutions from $83.00 to $61.00 and set an “overweight” rating for the company in a research note on Friday. HSBC cut their price objective on Cognizant Technology Solutions from $80.00 to $68.00 and set a “buy” rating on the stock in a research note on Wednesday, July 1st. Finally, Jefferies Financial Group decreased their target price on Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating for the company in a research report on Monday, May 4th. Eleven analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $64.26.

View Our Latest Research Report on CTSH

Hedge Funds Weigh In On Cognizant Technology Solutions

Large investors have recently made changes to their positions in the business. Norges Bank acquired a new stake in Cognizant Technology Solutions in the 4th quarter valued at approximately $690,959,000. GQG Partners LLC acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter worth approximately $673,651,000. Assenagon Asset Management S.A. boosted its position in shares of Cognizant Technology Solutions by 925.5% in the second 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 acquiring an additional 3,296,205 shares during the period. CIBC Bancorp USA Inc. acquired a new stake in shares of Cognizant Technology Solutions in the third quarter worth $201,834,000. Finally, Cibc World Markets Corp acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter worth $234,671,000. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions Price Performance

The firm has a market cap of $20.39 billion, a P/E ratio of 9.36, a price-to-earnings-growth ratio of 0.90 and a beta of 0.87. The stock’s 50-day moving average is $48.09 and its 200-day moving average is $62.04. 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 (NASDAQ:CTSHGet Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The firm had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The business’s revenue was up 5.8% on a year-over-year basis. During the same period in the prior year, the firm earned $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, equities analysts anticipate that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

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

Cognizant Technology Solutions declared that its Board of Directors has approved a share repurchase plan on Monday, May 18th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information technology service provider to purchase up to 9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Cognizant Technology Solutions Company Profile

(Get Free Report)

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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