Cognizant Technology Solutions Co. (NASDAQ:CTSH) Receives Average Recommendation of “Hold” from Brokerages

Cognizant Technology Solutions Co. (NASDAQ:CTSH) has received a consensus recommendation of “Hold” from the twenty ratings firms that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, sixteen have assigned a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price target among analysts that have covered the stock in the last year is $79.47.

A number of brokerages have weighed in on CTSH. Royal Bank of Canada increased their price target on Cognizant Technology Solutions from $81.00 to $82.00 and gave the stock a “sector perform” rating in a report on Wednesday, August 28th. Robert W. Baird raised their target price on Cognizant Technology Solutions from $78.00 to $80.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Mizuho raised their target price on Cognizant Technology Solutions from $83.00 to $84.00 and gave the company a “neutral” rating in a research note on Friday, November 1st. Needham & Company LLC restated a “hold” rating on shares of Cognizant Technology Solutions in a research note on Thursday, October 31st. Finally, TD Cowen raised their target price on Cognizant Technology Solutions from $75.00 to $76.00 and gave the company a “hold” rating in a research note on Thursday, October 31st.

Cognizant Technology Solutions Stock Performance

Shares of Cognizant Technology Solutions stock opened at $80.75 on Thursday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.08. The business has a 50-day moving average price of $77.24 and a two-hundred day moving average price of $73.56. Cognizant Technology Solutions has a 1-year low of $63.79 and a 1-year high of $82.41. The company has a market cap of $40.04 billion, a P/E ratio of 17.87, a PEG ratio of 2.22 and a beta of 1.05.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Wednesday, October 30th. The information technology service provider reported $1.25 earnings per share for the quarter, topping analysts’ consensus estimates of $1.15 by $0.10. Cognizant Technology Solutions had a return on equity of 17.08% and a net margin of 11.60%. The firm had revenue of $5.04 billion during the quarter, compared to the consensus estimate of $4.99 billion. During the same period last year, the business posted $1.16 EPS. The business’s revenue was up 3.0% compared to the same quarter last year. As a group, analysts anticipate that Cognizant Technology Solutions will post 4.66 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Tuesday, November 19th were given a dividend of $0.30 per share. The ex-dividend date was Tuesday, November 19th. This represents a $1.20 annualized dividend and a dividend yield of 1.49%. Cognizant Technology Solutions’s dividend payout ratio is currently 26.55%.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of CTSH. Janus Henderson Group PLC lifted its position in shares of Cognizant Technology Solutions by 4.7% during the 1st quarter. Janus Henderson Group PLC now owns 64,111 shares of the information technology service provider’s stock worth $4,694,000 after buying an additional 2,907 shares in the last quarter. B. Riley Wealth Advisors Inc. raised its holdings in shares of Cognizant Technology Solutions by 14.4% in the 1st quarter. B. Riley Wealth Advisors Inc. now owns 5,684 shares of the information technology service provider’s stock worth $385,000 after purchasing an additional 716 shares during the period. Tidal Investments LLC raised its holdings in shares of Cognizant Technology Solutions by 61.8% in the 1st quarter. Tidal Investments LLC now owns 34,546 shares of the information technology service provider’s stock worth $2,536,000 after purchasing an additional 13,189 shares during the period. LBP AM SA raised its holdings in shares of Cognizant Technology Solutions by 86.9% in the 1st quarter. LBP AM SA now owns 11,351 shares of the information technology service provider’s stock worth $832,000 after purchasing an additional 5,278 shares during the period. Finally, Plato Investment Management Ltd raised its holdings in shares of Cognizant Technology Solutions by 4,140.0% in the 1st quarter. Plato Investment Management Ltd now owns 1,060 shares of the information technology service provider’s stock worth $78,000 after purchasing an additional 1,035 shares during the period. Institutional investors own 92.44% of the company’s stock.

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.