Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan raised Cognizant’s price target from $67 to $78 and maintained an “overweight” rating, implying approximately 13% upside from the prior close.
• Analyst sentiment is mixed: 10 analysts rate the stock Buy, 13 Hold, and one Sell, resulting in a consensus “Hold” rating and an average price target of $66.62.
• Cognizant reported quarterly revenue of $5.48 billion, up 4.5% year over year, while EPS of $1.37 narrowly missed estimates; institutional investors and hedge funds own 92.44% of the stock.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its price target lifted by JPMorgan Chase & Co. from $67.00 to $78.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage currently has an "overweight" rating on the information technology service provider's stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 13.04% from the company's previous close.

A number of other research analysts have also recently commented on CTSH. Mizuho set a $64.00 price target on Cognizant Technology Solutions in a research report on Thursday, August 6th. Daiwa Securities Group increased their price objective on shares of Cognizant Technology Solutions from $42.00 to $60.00 and gave the stock a "neutral" rating in a research note on Friday, September 25th. HSBC decreased their target price on shares of Cognizant Technology Solutions from $80.00 to $68.00 and set a "buy" rating on the stock in a report on Wednesday, July 1st. Nomura dropped their target price on shares of Cognizant Technology Solutions from $93.00 to $74.00 and set a "buy" rating for the company in a research report on Wednesday, July 1st. Finally, Guggenheim restated a "buy" rating and issued a $65.00 target price (down from $80.00) on shares of Cognizant Technology Solutions in a research report on Monday, July 27th. Ten research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $66.62.

Cognizant Technology Solutions Stock Performance

CTSH stock traded down $1.54 during midday trading on Monday, reaching $69.00. 845,858 shares of the company were exchanged, compared to its average volume of 7,926,203. The company has a debt-to-equity ratio of 0.11, a current ratio of 2.18 and a quick ratio of 2.18. The business has a 50-day moving average price of $61.58 and a two-hundred day moving average price of $54.69. Cognizant Technology Solutions has a one year low of $37.08 and a one year high of $87.03. The firm has a market capitalization of $31.08 billion, a price-to-earnings ratio of 14.84, a price-to-earnings-growth ratio of 1.32 and a beta of 0.86.

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 EPS for the quarter, missing the consensus estimate of $1.38 by ($0.01). The firm had revenue of $5.48 billion during the quarter, compared to analyst estimates of $5.48 billion. Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. Cognizant Technology Solutions's revenue for the quarter was up 4.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.31 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. Equities research analysts forecast that Cognizant Technology Solutions will post 5.74 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in CTSH. Security National Bank of SO Dak boosted its stake in shares of Cognizant Technology Solutions by 1.1% during the 2nd quarter. Security National Bank of SO Dak now owns 25,780 shares of the information technology service provider's stock worth $998,000 after purchasing an additional 290 shares during the last quarter. Signature Equity Partners LLC raised its position in shares of Cognizant Technology Solutions by 102.4% in the first quarter. Signature Equity Partners LLC now owns 599 shares of the information technology service provider's stock valued at $37,000 after buying an additional 303 shares during the last quarter. Pine Valley Investments Ltd Liability Co lifted its stake in shares of Cognizant Technology Solutions by 3.6% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 9,338 shares of the information technology service provider's stock valued at $573,000 after buying an additional 322 shares during the period. Marquette Asset Management LLC boosted its position in Cognizant Technology Solutions by 183.9% during the third quarter. Marquette Asset Management LLC now owns 545 shares of the information technology service provider's stock worth $31,000 after acquiring an additional 353 shares during the last quarter. Finally, Patton Fund Management Inc. boosted its position in Cognizant Technology Solutions by 12.8% during the first quarter. Patton Fund Management Inc. now owns 3,270 shares of the information technology service provider's stock worth $201,000 after acquiring an additional 371 shares during the last quarter. 92.44% of the stock is owned by institutional investors and hedge funds.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation is a global information technology services and consulting company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company serves businesses across industries including financial services, healthcare, life sciences, manufacturing, retail and communications.

Cognizant's services include consulting, application development and modernization, cloud computing, data and artificial intelligence, digital engineering, cybersecurity and business process services.

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