Cognizant Technology Solutions (NASDAQ:CTSH) Reaches New 52-Week Low Following Analyst Downgrade

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s share price hit a new 52-week low on Thursday after Guggenheim lowered their price target on the stock from $100.00 to $85.00. Guggenheim currently has a buy rating on the stock. Cognizant Technology Solutions traded as low as $55.61 and last traded at $55.4380, with a volume of 854123 shares trading hands. The stock had previously closed at $58.81.

Several other research analysts have also commented on the company. Argus upgraded Cognizant Technology Solutions to a “hold” rating in a research report on Tuesday, February 10th. Berenberg Bank set a $107.00 price objective on Cognizant Technology Solutions and gave the stock a “buy” rating in a research note on Thursday, January 22nd. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $98.00 price objective (up from $87.00) on shares of Cognizant Technology Solutions in a report on Wednesday, January 14th. UBS Group lowered their target price on shares of Cognizant Technology Solutions from $67.00 to $64.00 and set a “neutral” rating for the company in a research note on Monday, April 13th. Finally, TD Cowen reduced their price target on shares of Cognizant Technology Solutions from $85.00 to $71.00 and set a “hold” rating on the stock in a research report on Friday, March 13th. Nine research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $84.68.

Insider Buying and Selling at Cognizant Technology Solutions

In related news, insider Surya Gummadi sold 1,728 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total value of $143,527.68. Following the sale, the insider owned 25,641 shares of the company’s stock, valued at approximately $2,129,741.46. This trade represents a 6.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On Cognizant Technology Solutions

Hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC bought a new stake in Cognizant Technology Solutions in the 4th quarter valued at about $214,000. Geneos Wealth Management Inc. increased its stake in shares of Cognizant Technology Solutions by 118.8% in the first quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider’s stock valued at $44,000 after purchasing an additional 309 shares during the period. Acadian Asset Management LLC acquired a new stake in shares of Cognizant Technology Solutions in the first quarter valued at approximately $142,000. Cresset Asset Management LLC raised its holdings in shares of Cognizant Technology Solutions by 11.4% during the second quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider’s stock valued at $715,000 after buying an additional 935 shares during the last quarter. Finally, Jump Financial LLC boosted its position in shares of Cognizant Technology Solutions by 231.4% during the second quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider’s stock worth $2,315,000 after buying an additional 20,716 shares during the period. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions Stock Performance

The firm has a market capitalization of $26.65 billion, a price-to-earnings ratio of 12.20, a P/E/G ratio of 1.32 and a beta of 0.98. The company has a 50-day moving average price of $62.24 and a 200-day moving average price of $72.16. The company has a quick ratio of 2.14, a current ratio of 2.14 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 EPS for the quarter, beating the consensus estimate of $1.32 by $0.03. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.The firm had revenue of $5.33 billion for the quarter, compared to analysts’ expectations of $5.31 billion. During the same period last year, the firm earned $1.21 EPS. The firm’s revenue was up 4.9% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. As a group, equities research analysts forecast that Cognizant Technology Solutions Corporation will post 5.65 earnings per share for the current year.

Cognizant Technology Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, February 26th. Investors of record on Wednesday, February 18th were paid a dividend of $0.33 per share. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Wednesday, February 18th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is presently 29.01%.

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.