Cognizant Technology Solutions' (CTSH) Hold Rating Reaffirmed at TD Cowen

Key Points

• TD Cowen reaffirmed a “Hold” rating on Cognizant Technology Solutions and set a $54 price target, implying approximately 10.7% downside from the reported $60.48 share price.
• Analyst sentiment remains mixed but leans neutral: 10 analysts rate the stock a Buy, 13 a Hold, and one a Sell, with an average target price of $63.
• Cognizant’s latest quarterly revenue rose 4.5% year over year to $5.48 billion, while EPS of $1.37 narrowly missed consensus estimates; institutional investors own 92.44% of the stock.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report)'s stock had its "hold" rating reissued by analysts at TD Cowen in a report released on Friday, Benzinga reports. They currently have a $54.00 price target on the information technology service provider's stock. TD Cowen's price objective suggests a potential downside of 10.71% from the company's current price.

Other equities analysts also recently issued reports about the stock. Berenberg Bank set a $59.00 price objective on shares of Cognizant Technology Solutions and gave the stock a "hold" rating in a report on Wednesday, June 17th. Guggenheim reissued a "buy" rating and set a $65.00 price target (down from $80.00) on shares of Cognizant Technology Solutions in a research report on Monday, July 27th. Morgan Stanley restated a "negative" rating and set a $51.00 price target (up from $44.00) on shares of Cognizant Technology Solutions in a report on Thursday, July 30th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Cognizant Technology Solutions in a research report on Friday, August 7th. Finally, Citigroup reiterated a "neutral" rating and issued a $60.00 price objective (up from $45.00) on shares of Cognizant Technology Solutions in a research note on Thursday, July 30th. Ten equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Cognizant Technology Solutions presently has an average rating of "Hold" and an average target price of $63.00.

Cognizant Technology Solutions Stock Down 2.3%

NASDAQ CTSH traded down $1.40 during trading hours on Friday, hitting $60.48. The company's stock had a trading volume of 654,624 shares, compared to its average volume of 8,063,845. Cognizant Technology Solutions has a 52 week low of $37.08 and a 52 week high of $87.03. The company has a market capitalization of $27.24 billion, a PE ratio of 13.04, a price-to-earnings-growth ratio of 1.15 and a beta of 0.83. The company has a current ratio of 2.18, a quick ratio of 2.18 and a debt-to-equity ratio of 0.11. The company's 50-day simple moving average is $56.02 and its two-hundred day simple moving average is $54.82.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share for the quarter, missing analysts' consensus estimates of $1.38 by ($0.01). Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The company had revenue of $5.48 billion during the quarter, compared to the consensus estimate of $5.48 billion. During the same quarter in the prior year, the business earned $1.31 EPS. The firm's revenue for the quarter was up 4.5% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. Research analysts anticipate that Cognizant Technology Solutions will post 5.74 EPS for the current fiscal year.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several institutional investors and hedge funds have recently bought and sold shares of CTSH. Norges Bank purchased a new stake in shares of Cognizant Technology Solutions in the fourth quarter worth about $690,959,000. Assenagon Asset Management S.A. grew its stake in Cognizant Technology Solutions by 925.5% during 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 in the last quarter. Pzena Investment Management LLC increased its holdings in Cognizant Technology Solutions by 14.9% during the 1st quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider's stock worth $1,243,096,000 after acquiring an additional 2,633,683 shares during the period. Lazard Asset Management LLC increased its holdings in Cognizant Technology Solutions by 752.1% during the 1st quarter. Lazard Asset Management LLC now owns 1,317,166 shares of the information technology service provider's stock worth $80,808,000 after acquiring an additional 1,162,580 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Cognizant Technology Solutions in the 2nd quarter worth approximately $33,117,000. 92.44% of the stock is owned by institutional investors.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation is a professional services and information technology company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company provides consulting, systems integration, application development and maintenance, and business process services to clients across industries.

Its offerings include cloud enablement, software engineering, data and analytics, artificial intelligence, cybersecurity, automation and digital workplace solutions.

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