Cognizant Technology Solutions (NASDAQ:CTSH) Given “Sector Perform” Rating at Royal Bank of Canada

Royal Bank of Canada reaffirmed their sector perform rating on shares of Cognizant Technology Solutions (NASDAQ:CTSH) in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a $93.00 target price on the information technology service provider’s stock.

Several other equities research analysts have also recently commented on CTSH. UBS Group dropped their target price on Cognizant Technology Solutions from $93.00 to $88.00 and set a “neutral” rating on the stock in a report on Monday, March 17th. Morgan Stanley cut their price objective on Cognizant Technology Solutions from $85.00 to $80.00 and set an “equal weight” rating for the company in a report on Wednesday, March 12th. Mizuho raised Cognizant Technology Solutions to a “hold” rating in a report on Wednesday, March 19th. StockNews.com raised shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a report on Thursday, February 6th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Cognizant Technology Solutions in a research note on Thursday, February 6th. Fourteen research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $84.56.

Cognizant Technology Solutions Stock Performance

Shares of CTSH stock opened at $77.85 on Wednesday. Cognizant Technology Solutions has a 12-month low of $63.79 and a 12-month high of $90.82. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.09. The firm has a market capitalization of $38.51 billion, a price-to-earnings ratio of 17.26, a price-to-earnings-growth ratio of 2.11 and a beta of 1.12. The business has a 50 day simple moving average of $82.72 and a 200 day simple moving average of $79.48.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Wednesday, February 5th. The information technology service provider reported $1.21 EPS for the quarter, beating analysts’ consensus estimates of $1.12 by $0.09. Cognizant Technology Solutions had a return on equity of 16.78% and a net margin of 11.35%. On average, equities research analysts anticipate that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, February 26th. Investors of record on Tuesday, February 18th were given a dividend of $0.31 per share. The ex-dividend date was Tuesday, February 18th. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. This represents a $1.24 dividend on an annualized basis and a yield of 1.59%. Cognizant Technology Solutions’s payout ratio is presently 27.49%.

Cognizant Technology Solutions announced that its board has initiated a share repurchase program on Tuesday, March 25th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the information technology service provider to buy up to 5.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its stake in Cognizant Technology Solutions by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 59,028,485 shares of the information technology service provider’s stock valued at $4,539,290,000 after purchasing an additional 515,881 shares in the last quarter. State Street Corp grew its stake in shares of Cognizant Technology Solutions by 3.6% in the 3rd quarter. State Street Corp now owns 24,985,816 shares of the information technology service provider’s stock valued at $1,928,405,000 after buying an additional 867,176 shares in the last quarter. Geode Capital Management LLC increased its holdings in Cognizant Technology Solutions by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 13,437,687 shares of the information technology service provider’s stock worth $1,032,239,000 after buying an additional 157,464 shares during the last quarter. FMR LLC raised its position in Cognizant Technology Solutions by 1.1% during the fourth quarter. FMR LLC now owns 11,147,006 shares of the information technology service provider’s stock valued at $857,205,000 after acquiring an additional 123,745 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in Cognizant Technology Solutions by 2.8% in the fourth quarter. Invesco Ltd. now owns 10,655,180 shares of the information technology service provider’s stock valued at $819,383,000 after acquiring an additional 287,973 shares during 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 Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.